Tesco increases milk price paid to farmers

2 Apr 2014

Tesco announced today the new price it will pay British dairy farmers for their milk.

Tesco announced today the new price it will pay British dairy farmers for their milk.

Tesco Sustainable Dairy Group (TSDG) members will receive the new price of at least 34.2ppl. This represents an increase of at least 0.4ppl for all TSDG farmers.

Tesco guarantees TSDG farmers always receive a price that is above the cost of production, making sure their business turns a profit so they can plan and invest for the future. We collaborate with our farmers on the way the price calculation works, and all price changes are negotiated with farmers representing TSDG members.

Customers can be assured that every litre of own-brand milk they buy has come from a Tesco TSDG farmer.

John Scouler, Tesco Commercial Director 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.”

Since 2007 Tesco has invested over £185 million into the Tesco Sustainable Dairy Group in paying a fair price to British dairy farmers, improving animal welfare and environmental standards, and a next generation scholarship programme.


Notes to editors

  • Every litre of Tesco own label fresh milk, with the exception of Organic milk, is covered by the new price.
  • TSDG members who receive the Promar supplement will receive the new price of 34.2ppl for farmers whose milk is processed by Arla and 34.3ppl for farmers whose milk is processed by Muller Wiseman. This reflects recent increases in the prices our processors pay their farmers.
  • The commitment of TSDG is further 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. In January 2008 we also launched a visitor centre which is a national resource point for schools, farmers and dairy industry experts and over 1000 children have now visited.

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

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