Tesco Pays Highest Ever Price To Dairy Farmers

UK - Members of Tesco's Sustainable Dairy Group, will receive the highest ever price paid for their milk, since the initiatives launch four years ago.
calendar icon 25 March 2011
clock icon 2 minute read

From the 1st April, Tesco dairy farmers who take part in the independent cost tracker review will receive a new price of up to 29.78ppl. This is an increase of 1.60ppl, since the previous six-month review last September.

The new payment follows an independent check of Tesco farmer production costs by Promar, the research consultancy specialising in agriculture and agri-food sectors. The increase once again, is mainly a result of higher feed costs.

This new price is significantly higher than the average processor’s price currently paid to dairy farmers, at 26.74ppl. This means Tesco is paying its farmers 3.04ppl more than the average processor’s price.

Tesco Board Director, Lucy Neville-Rolfe said; “With the price of feed and production costs rising it is important to support our British dairy farmers. We will continue to pay a fair price for the milk they supply and to work with the Dairy Centre of Excellence at Liverpool University to improve dairy productivity and sustainability.”

The Tesco Sustainable Dairy Group pays farmers a supplement that reflects hidden costs, such as unpaid family labour. Farmers receive an additional payment of £48,884 for unpaid family labour, which is over and above the cost of production. This is essential for the long term future of the British dairy industry.

Andy Bloor, Dairy Farmer and Farmer Committee Chairman said; “This new price remains considerably above the current market value and reflects the transparent way Tesco works with the dairy industry. This strong relationship gives us the confidence and stability to remain in the dairy industry.”

The Tesco Sustainable Dairy Group (TSDG) was established to address the huge uncertainty facing British dairy farmers caused by the continuing volatility in the markets. The group’s 800 farmer members continue to benefit from Tesco’s pledge to ensure dairy farmers are paid above the cost of production enabling them to invest and plan ahead.

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