Tesco increases pay to dairy suppliers to support sector

Tesco has announced it will increase how much it pays for all its fresh milk in order to support over 500 British dairy farmers.

The move comes amid volatility in the dairy sector with suppliers facing unprecedented levels on on-farm inflation.

From 1 July the Big 4 grocer will increase the price it pays from 41.59ppl to 46ppl, following its decision in March to increase the amount paid suppliers for a litre of milk by 20%.

READ MORE: Usdaw ‘disappointed’ as Tesco appeals high court ruling

The amount the supermarket pays its Tesco Sustainable Dairy Group (TSDG) is independently set on a quarterly basis and accounts for feed, fuel and fertiliser, resulting in a fair price which is reflective of the cost of production.

Tesco set up the TSDG 15 years ago to address “certainty and volatility in the dairy sector” with farmer guaranteed a stable price regardless of market conditions.

Last month, Tesco also reaffirmed its commitment within the poultry industry – by announcing new five-year contracts for its five shell egg suppliersAnglia Free Range Eggs, Glenrath Farms, Griffiths Family Farms, Noble Foods and Skea Eggs.

The news comes after Waitrose pledged to give its dairy herds more freedom to graze outside for longer, in an industry first.

From early April, the grocer‘s cows will spend at least 180 days a year grazing outside, an increase from 120 days, which Waitrose said will allow its cattle to exhibit natural behaviour leads to happier cows.

Click here to sign up to Grocery Gazette’s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.



Sign up to our daily newsletter to get all the latest grocery news and insights direct to your inbox.

  • This field is for validation purposes and should be left unchanged.