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Tesco to increase number of British dairy farmers’ direct contracts

Staff writer |
Following the regular six monthly evaluation of production costs, the new price Tesco will pay for milk from November 1 will be 30.58ppl.

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Matt Simister, Tesco’s commercial director of Fresh Food & Commodities said: "Over the summer we have been carrying out a collaborative review with members of the TSDG, to help us to continue to partner with our farmers in a sustainable way, adapting to the significant changes we’ve seen across the whole of British Agriculture as well as dairy in recent years.

"As we near the end of the process, we are confident that we’ll be able to increase the number of direct relationships with our core TSDG pool farms by over a quarter by Spring 2016, helping us to further cement our lead as British Agricultures biggest supporter."

The new price has been set using the independent consultancy-Promar- to make sure that the price paid by Tesco reflects the average cost of production of the TSDG members. That price is agreed in collaboration with farmers, then set for six months and is completely independent from the retail price for milk.

It will cover all Tesco own-brand fresh and filtered milk (1, 2, 4, 6 pint and 1 and 2 litre – excluding organic milk); single, double & extra thick double cream (150, 300, 600 ml) products and mature & extra mature cheddar.

Until February 28, 2016, Tesco brand Mild & Medium Cheddar, Red Leicester & Double Gloucester Cheese will receive 29.58ppl, which will be reflected in the cheese price paid to the processor.

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