Tesco to pay its British dairy farmers 28.69 ppl for their fresh milk

CHESHUNT, England, 2016-Apr-05 — /EPR Retail News/ — Tesco has today confirmed that for three months from 1st May, it will pay its British dairy farmers 28.69 ppl for their fresh milk, through the Tesco Sustainable Dairy Group (TSDG).

The TSDG, which was set up in 2007 to address the uncertainty faced by British dairy farmers caused by volatility in the markets, has continued to be integral to how the retailer has created sustainable and fair partnerships with producers, growers and farmers across British Agriculture.

The largest of its kind in the retail industry, the group comprises of around 600 farmers, who supply Tesco directly with own-brand fresh and filtered milk products and share Tesco’s aim to deliver the best possible quality milk for customers.

Since its establishment, the pricing mechanism of the groups has ensured that Tesco continues to pay a price for the milk that is buys, that reflects at least the cost of production for dairy farmers. The guaranteed price, which will be reviewed every quarter to ensure that it correctly corresponds with the current market conditions for producers, helps farmers to budget, invest and plan for the future. Calculated by the independent consultancy-Promar – the price paid by Tesco reflects the average cost of production of all members of the sustainable dairy group.

The price, which is always agreed in collaboration with farmers from the group, is completely independent from the retail price for milk.  Customers can be assured that every pint of own-brand milk they buy from Tesco supports a TSDG farmer, helping to deliver a sustainable future for the British dairy industry.

Tesco Commercial Director for Fresh Food Matt Simister said:

‘The TSDG continues to be the cornerstone of the way we partner with British Agriculture. For almost a decade we have worked with our dairy farmers to provide the best possible quality British milk, produces to the highest standards for our customers, whilst ensuring farmers receive a fair price.

‘We know that our customers want us to support dairy farmers during this period of economic uncertainty. And through our direct partnerships with producers, customers can been assured that every pint of own-brand milk they buy from Tesco, offers valuable security for a TSDG farmer’

TSDG Farmer and Committee Chairman James Stephen said: 

‘I have been farming for many years and have seen first-hand how volatile the industry has and continues to be.

‘The Tesco Sustainable Dairy Group  provides  confidence to plan for the future, so we can focus on the things that matter most to customers- delivering high quality British milk, with high animal welfare and farm standards.’

The new price covers all Tesco own-brand fresh & 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.

Notes to editors

  • The new price is following an independent cost tracker review by agriculture research consultancy Promar. Tesco pays a price for milk that reflects the cost of production, calculated from costs submitted to Promar.
  • The new price, which is 1.39ppl lower than the previous 6 months’ price, takes into consideration a reduction in the cost of feed and rising milk volumes and will be reviewed every three months

For more information please contact the Tesco Press Office on 01707 918 701
We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

Tesco extends financial support for British dairy farmers

CHESHUNT, England, 2016-Feb-16 — /EPR Retail News/ — As the wintry weather continues to take hold, Tesco has today announced it will extend its industry leading support for British dairy farmers.

Six months ago, Tesco announced it would provide additional financial provision for farmers who produce milk that goes into its own label cheddar cheese products. The winter supplement payment was initially intended to conclude at the end of February, but given the inclement weather and challenges faced by First Milk farmers during these uncertain times in the dairy market, Tesco is pleased to announce the payment will now be extended to support the farmers through to spring.

Through the work of the Tesco Sustainable Dairy Group (TSDG) and its collaborative partnerships with dairy farmers, Tesco  recognises how challenging the winter months can be – particularly for non-TSDG producers -and has made this investment to give them further additional financial assistance until 17th April 2016 to help them cover their production costs.

Commercial Director for Fresh Foods and Commodities Matt Simister said:

‘Helping to create a sustainable dairy industry is integral to how we partner with British Agriculture. Tesco has a long history of supporting dairy farmers and is proud of the sourcing relationships we have with them.

‘We recognise that it is a particularly challenging and uncertain time in the global dairy market, which is why over the past six months, we have provided additional financial support to help our First Milk farmers.

‘With the effects of the winter still being felt across the country, we are delighted to announce we have extended the supplement.’

Mike Gallacher, First Milk’s CEO said:

‘First Milk would like to thank Tesco again for their support with the Winter Supplement and welcome the news that this will be extended for a further six week period. Consumers clearly want their retailers to pay sustainable prices for British dairy products – in both cheese and milk – and Tesco, under Dave Lewis, have taken a leadership position. They deserve a great deal of credit for continuing to support British farmers who supply the milk that makes Tesco’s cheese.’

Dairy farmers from across the UK will also receive a further boost, with the move to one hundred per cent British milk for all Tesco own label standard yoghurts from the 1 March. This will see Tesco increase the amount of British milk in its standard range yoghurts from two-thirds and will help increase the demand for milk from farms across the whole country.

ENDS

 

1.       The winter supplement payment was due to cease on the 28th February 2016, but will now be extended until 17th April 2016.

2.       Tesco has supported First Milk farmers supplying their Haverfordwest Creamery through this period by paying First Milk the base TSDG price for the milk that goes into their cheese. This price will continue to be 29.58ppl and will be reflected in the cheese price that Tesco pays to the processor.

3.       First Milk will distribute this additional income across its farmers, and will be able to provide an audit to demonstrate that farmers have received this additional payment.

4.       From March 2016, all Tesco own label standard tier yoghurt will be made with milk sourced from Britain with the exception of those with protected origins – including authentic Greek Yoghurt and French Fromage Frais.

 

For more information please contact the Tesco Press Office on
01707 918 701

We are a team of 480,000 in 11 markets dedicated to serving shoppers a little better every day.

 

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Tesco extends financial support for British dairy farmers

Tesco extends financial support for British dairy farmers

Tesco increases number of British dairy farmers’ direct contracts through the Tesco Sustainable Dairy Group (TSDG)

CHESHUNT, England, 2015-9-28 — /EPR Retail News/ — Tesco has a long history in supporting British Dairy farming, providing direct contracts to farmers for over eight years through the Tesco Sustainable Dairy Group (TSDG).

Set up in 2007, the TSDG model allows Tesco to collaboratively partner with farmers and support British Agriculture in a fair and transparent way, whilst encouraging sustainable investment into productivity, animal health and welfare.

Using an independent pricing mechanism, Tesco has consistently paid a market leading price for milk. The price, which is fixed for six months at a time, recognises the true costs of production across different dairy farming systems, allowing the 600 TSDG farmers to plan and re-invest in their businesses, irrespective of the market price.

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’.

Following the regular six monthly evaluation of production costs, the new price Tesco will pay for milk from 1stNovember will be 30.58ppl*.

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 & 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 the 28th February 2016, Tesco brand Mild & Medium Cheddar, Red Leicester & Double Gloucester Cheese will receive 29.08ppl, which will be reflected in the cheese price paid to the processor.

The core principles of the TSDG have always been to:

  • Have a transparent and clear pricing mechanism, using an independent cost tracker
  • Pay a fair price for our milk and reward those who help us to deliver the best quality milk for our customers and the highest animal health and welfare standards
  • Ensure that we have a sustainable approach to the dairy industry.

ENDS

Notes to editors

  • The new price is following an independent cost tracker review by agriculture research consultancy Promar. Tesco pays a price for milk that reflects the cost of production, calculated from costs submitted to Promar.
  • The previous price was 30.93ppl* The new price takes into consideration a reduction in the cost of feed and rising milk volumes
  • The TSDG review is due to be completed in November 2015
  • Earlier this month Tesco announced that from March 2016, all Tesco Brand Standard tier yoghurt will be made with milk sourced from Britain

*The price includes 0.5ppl for sharing cost data with Promar International

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

We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

Tesco to pay 30.93ppl to its British dairy farmers for milk from 1 May

Cheshunt, England, 2015-3-30 — /EPR Retail News/ — Tesco has today confirmed the new price it will pay its British dairy farmers for milk. Following the regular 6-monthly review of production costs, the new price Tesco will pay for milk from 1 May, will be 30.93ppl*.

Set up in 2007, the TSDG comprises around 600 farmers who supply Tesco directly with own-brand fresh and filtered milk products and share Tesco’s aim to deliver the best quality milk possible for customers. The TSDG pricing mechanism ensures that Tesco pays a price for the milk that is buys that reflects the cost of production to dairy farmers, helping them to invest and plan for the future.

The new price has been set using the independent consultancy-Promar- to make sure that price paid by Tesco reflects average cost of production of the TSDG group. That price is agreed in collaboration with farmers, then set for six months and is completely independent from the retail price for milk.  Customers can be assured that every pint of own-brand milk they buy from Tesco supports a TSDG farmer, helping to deliver a sustainable future for the British dairy industry.

Tom Hind, Tesco’s Director of Agriculture said:

‘The TSDG remains a cornerstone of our plans to build ever stronger relationships with our producers. Over the past eight years we have worked in partnership with our dairy farmers to provide the best quality milk possible for our customers, whilst still paying a fair price for the milk we buy.

‘Through TSDG and our pioneering Dairy Centre of Excellence with Liverpool University, Tesco has invested £200 million into British dairy farming. By agreeing a clear price for a period of six months, we are able to offer our farmers valuable security in a volatile market.’

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

‘The pricing structure of the TSDG goes some way to providing stability and peace of mind, which is often lacking in an increasingly volatile industry. Set for six months, all farmers in the group have real certainty over the milk price they’ll receive, which is of huge benefit when budgeting and planning for the future.’

The new price covers all Tesco own-brand fresh & 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.

Notes to editors

  • The new price is following an independent cost tracker review by agriculture research consultancy Promar. Tesco pays a price for milk that reflects the cost of production, calculated from costs submitted to Promar.
  • The new price, which is 1.08ppl lower than the previous 6 months’ price, takes into consideration a reduction in the cost of feed and rising milk volumes
  • *The price includes 0.5ppl for sharing cost data with Promar International

Key TSDG facts:

  • Investment – £200m invested directly into British dairy farming
  • Investing in the Future- Over 1000 children have visited the Tesco Dairy Centre of Excellence to improve their knowledge and understanding of Dairy production
  • Animal Welfare- Our dairy farmers must adhere to the nationally recognised Red Tractor assurance scheme, as well as additional Tesco welfare standards, which are used to drive continuous improvement of cow health and welfare.
  • Proud to be members of the TSDG-96% of our farmers believe that they have benefitted from being a member of the TSDG.
  • Building for the Next Generation -55% of TSDG Members are planning to expand their business within the next five Years
  • Productivity- The average Tesco dairy farmer has grown milk output by 26% since 2007
  • Growing Confidence -92% of TSDG farmers are expecting their plans for milk production to increase or stay the same over the next five years.

Tesco confirms new price to be paid to British dairy farmers for six months from the 1st November

Cheshunt, England, 2014-9-25— /EPR Retail News/ — 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

We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

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