UK – Supermarket chain Tesco has pledged to pay its cheese suppliers more this winter providing processors distribute the extra value back to producers.
Two dairies, First Milk and South Caernarfon Creameries, will receive 29.93 pence per litre in a move described by farmers as “significant” yesterday.
The announcement is an extension of Tesco's “sustainable pricing model” and will assist businesses with the higher costs winter brings.
Tesco has also pledged to label all fresh milk sold in One Stop sores with a Red Tractor label from 1 December 2015 and that all country of origin labels on cheese are clear and specify one origin only.
Commenting on the milk price pledge, NFU Dairy Board vice chairman said: “This is the first retailer we have seen to make this move and this is a positive step given the current environment.
“Consumers have made it clear that they want to see a dairy sector that is sustainable in the long-term and all retailers need to be accountable for this.”
Farmers For Action chairman David Handley stressed that the higher prices must be passed on to farmers.
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