Tesco Extends Sustainable Milk Pool

UK - Tesco is extending its Sustainable Dairy Group Milk pool. From 6th December, all of Tesco’s fresh cream and own label milk brands, Creamfields and Pure, will contain milk from the Tesco Sustainable Dairy Group farmers.
calendar icon 1 December 2010
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This means that Tesco’s group of dedicated dairy farmers will each receive an estimated £44,900 above the average British milk price next year, rising from a yearly average of £40,800 since the group was launched in 2007.

This equates to a total yearly investment of £33.3 million by Tesco into the milk price alone. Tesco dairy farmers currently receive a farmgate milk price of 28.18ppl, which, uniquely, is set following an independent review of farm production costs.

The announcement was made at the Tesco Sustainable Dairy Group third annual conference on Monday 29th November, 2010, which was hosted by Lucy Neville-Rolfe, Corporate and Legal Affairs Director at Tesco Plc. Hundreds of Tesco dairy farmers from across the UK attended the event at Stoneleigh Park, Warwickshire, where they had the opportunity to speak with the dairy team at Tesco and fellow farmers and industry figures.

Ms Neville-Rolfe, said; “The annual Tesco Sustainable Dairy Group conference is an important and valuable event for both our dairy farmers and for the dairy team at Tesco. It allows us to reflect and review the year’s successes and challenges as well as looking ahead at future plans for the Tesco Sustainable Dairy Group.

“Now in its fourth year, we are seeing real benefits for our farmers. Tesco remains committed to ensuring British dairy farmers receive a fair price for the milk they supply to Tesco and the guarantee to pay above the cost of production is helping our farmers’ to investment for the long term.

“This is clearly shown by a 5.8 per cent growth in milk production amongst our farmers over the past 12 months. The decision to extend Tesco Sustainable Group milk into more areas shows our continued investment and commitment in the future of the group.”

The annual conference also gave the farmers an opportunity to hear more about the work of the Tesco Dairy Centre of Excellence, based at the University of Liverpool. Since the launch of the centre three years ago Tesco has invested £1.6 million into important research and development, including environmental projects, such as the cow methane reduction study, lameness, fertility, and nutrition. The centre has also hosted a number of workshops for dairy farmers on fertility and mastitis as well attracting local schools and community groups to learn more about the British dairy industry.

Tesco also continues to build awareness of the Tesco Sustainable Dairy Group with customers by including the group’s assurance logo on dairy products made from the sustainable milk. Some of Tesco’s milk tankers also proudly display the logo as they deliver from farms and the farmers themselves have a Tesco Sustainable Group farmer signpost at the entrance to their farms.

Andy Bloor, Farmer Committee Chairman, said; "The branded milk tankers carrying the Tesco Sustainable Dairy Group logo is a great and innovative way of promoting the work that Tesco is doing with dairy farmers in the group.

"Tesco's commitment to the group’s members has been unwavering and it is important that we use every available avenue to promote that commitment and raise consumer awareness of milk."

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