Tesco unveils Fair For Farmers Guarantee on all its milk

29 Jun 2016

Tesco has unveiled a new Fair For Farmers Guarantee on all of its fresh milk, as it continues to build transparent, long-term relationships with its suppliers.

The Fair For Farmers Guarantee explains how every pint of milk sold at Tesco is 100% British and provides customers with information on the fair price Tesco pays to all of its dairy farmers.

Tesco sources all of its fresh milk from the 600 British farmers who make up the Tesco Sustainable Dairy Group (TSDG). The Group was founded by Tesco in 2007 to ensure farmers benefit from a price which is above the cost of production.

Matt Simister, Commercial Director for Fresh Food at Tesco, said:

“Since we founded the Tesco Sustainable Dairy Group (TSDG) in 2007, we’ve been working in partnership with our farmers to ensure they have a sustainable long term future.

“When customers buy our milk they want to know our farmers are fairly treated and their cows are well cared for, so we’ve introduced the Fair For Farmers Guarantee on all our milk to give them peace of mind that they’re supporting British farmers with every pint of milk they buy. “

While prices may fluctuate in shops, Tesco pays farmers a price above the cost of production, set for three months at a time, ensuring they have a stable income, no matter what happens in the market. Since November 2007, in total Tesco has paid £240m over market prices to its milk farmers*.

TSDG Dairy farmer and Committee Chairman James Stephen said:

"As a lifelong dairy farmer I’ve seen first-hand how important the stability and support from the retail industry is to help us plan for the future. For over eight years I have worked with Tesco, who continue to pay British dairy farmers above the cost of production price for our milk,  so that we can focus on the things that matter most- caring for our cows and producing high quality milk. The Fair For Farmers Guarantee stamp is a simple way for customers to know that when they buy fresh milk from Tesco, they are helping to foster a better future for hundreds of British farmers."

The Fair For Farmers Guarantee:

Every farmer is paid fairly for every pint of milk:

  • Tesco dairy farmers get a fair deal, with a price above the cost of production for their fresh milk, so even if we drop the price of milk for customers, our farmers get paid the same.

Every pint is 100% British:

  • We work with dairy farmers from across England, Scotland and Wales.

Every cow is well cared for:

  • We have some of the best and award winning farmers across the country, whose priority is the health and well-being of their cows. Shoppers can be confident that our milk is produced to high standards and with the very best care and attention.

All Tesco dairy farmers receiving the Guarantee must adhere to the nationally recognised Red Tractor assurance scheme, as well as additional Tesco welfare standards on cow health and welfare. 

Notes to editors

*£240 million is calculated by taking the total amount we’ve paid to our farmers compared to the AHDB average market price per litre each month (whether higher or lower), multiplied by the number of litres we purchased that month.


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