Tesco to provide further boost to British dairy farmers
10 June 2022
Following continued volatility in the dairy sector, Tesco’s more than 500 British dairy farmers are set to receive a further, much-needed boost, after Tesco announced it will be increasing the price it pays for all of its fresh milk. From 1 July, Tesco will increase the price it pays from 41.59ppl to 46ppl. It is hoped the rise will help to address the current unprecedented levels of on-farm inflation.
The latest increase comes after prices were increased by close to 20% earlier this year.
The price Tesco pays its Tesco Sustainable Dairy Group (TSDG) is independently set on a quarterly basis and takes into account inputs such as 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 uncertainty and volatility in the dairy sector, with farmers guaranteed a stable price no matter what happens in the market, as well as ensuring they can plan for the future and invest in improvements on farm.