Tesco announces price rise for dairy farmers
Tesco has announced a price increase for its dairy farmers, with those who supply it through Arla and Muller Wiseman receiving marginally different prices.
Tesco Sustainable Dairy Group members who receive the Promar supplement will receive the new price of 34.2pplitre for milk processed by Arla while those whose milk is processed by Muller Wiseman will get 34.3ppl.
The price rise, which takes immediate effect, reflects recent increases in the prices the two processors pay their farmers.
Every litre of Tesco's own label fresh milk, with the exception of organic milk, is covered by the new price. The increase comes despite the controversy surrounding the retailers' much-publicised move to slash the price of its four-pint cartons to just £1.
Tesco commercial director John Scouler said: "This price is good news for the farmers who make up the Tesco Sustainable Dairy Group. It reflects our commitment to pay farmers a fair price for their milk. The TSDG has now been running for seven years and we are proud to continue to lead the way in offering dairy farmers a fair price and supporting British agriculture."
Will Hosford, TSDG dairy farmer and committee chairman said: "We are now seven years into our relationship with Tesco and this announcement re-affirms the long term commitment Tesco has to its dairy farmers.
"We are operating in a volatile market but being a TSDG member gives us the confidence and stability we need to carry on investing for the future."
The retailer said it had invested over £185 million into the TDSG since 2007.
