Tesco confirms new price paid to dairy farmers

24 Sep 2014

Tesco has today confirmed the new price it will pay British dairy farmers for six months from the 1st November, following an independent cost tracker review by agriculture research consultancy Promar.

Tesco has today confirmed the new price it will pay British dairy farmers for six months from the 1st November, following an independent cost tracker review by agriculture research consultancy Promar.

Tesco Sustainable Dairy Group (TSDG) members will be paid 32.01ppl for their milk, meaning that Tesco dairy farmers will receive a price above the market average.

Tesco continues to guarantee that TSDG famers receive a price that reflects the cost of production, calculated from costs submitted to Promar, ensuring that their businesses are profitable and enabling them to invest in the future. The new price follows four consecutive increases since 2012, takes into consideration a reduction in the cost of feed, and is agreed in collaboration with farmers on our TSDG committee. Customers can be assured that every pint of own-brand milk they buy from Tesco is helping to deliver a sustainable future for the British dairy industry, and that the price we pay our farmers is completely independent of the retail price for milk.

Tom Hind, Agriculture Director said:

“Over the past seven years we have worked in partnership with our dairy farmers to deliver a fair price for their milk. By agreeing a clear price, based on costs of production, for a period of six months, we are able to offer our farmers real stability and confidence in a changeable market.’

James Stephen, Aberdeenshire TSDG dairy farmer and Committee Chairman said:

“In these times of volatile milk prices the relative stability of the cost tracker model is of huge benefit to TSDG farmers in budgeting and giving confidence for the future.”

Notes to editors

  • The new price covers all our own-brand fresh & filtered milk (1, 2, 4, 6 pint and 1 and 2 litre – excluding organic milk) and single, double & extra thick double cream (150, 300, 600 ml) products.
  • The price includes 0.5ppl for sharing cost data with Promar International
  • The commitment of TSDG is reinforced by Tesco's work with Liverpool University through its Dairy Centre of Excellence. This exclusive agreement brings together the dairy sector to look at issues from animal welfare to consumer trends.
  •  The Centre of Excellence also serves as a national resource point for schools, farmers and dairy industry experts, and this summer Tesco and Arla have been running a national road trip to meet and explain to children where their milk comes from.

For more information please contact the Tesco Press Office on
01992 644645

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