Morrisons has agreed a new three-year contract starting in March 2018 that will mean its own-brand liquid milk is provided by Arla Foods.
In a statement, Morrisons said it is "looking forward to working more closely with their farmers on a range of sustainability and animal welfare measures."
As part of this deal, Morrisons is also committing to further enhancing its regional and local milk offering.
Steve Newbould, Morrisons Head of Trading - Dairy, said: “We believe this agreement will be simpler for our business and will help to develop a sustainable dairy sector.”
In March, Morrisons agreed to shorten its payment terms for its smaller suppliers to a maximum of 14 days.
From 1st April, all goods for resale suppliers, whose business with Morrisons is worth up to £100,000 annually with Morrisons, are paid within 14 days of receipt of a valid electronic invoice.
