Tesco to pay its dairy farmers 28.71 ppl for their fresh milk for the three months from 1st August

CHESHUNT, England, 2016-Jul-02 — /EPR Retail News/ — Tesco has today confirmed that for the three months from 1st August, it will pay its dairy farmers 28.71 ppl for their fresh milk, through the Tesco Sustainable Dairy Group (TSDG). This will be an increase of 0.02ppl from the previous quarter.

The move follows the introduction of the Fair For Farmers Guarantee, which pledges that every pint of milk sold at Tesco is 100% British and provides customers with information on the fair price they pay their dairy farmers.

The Fair For Farmers Guarantee promises that:

  • Every farmer is paid fairly for every pint of milk
  • Every pint is 100% British
  • Every cow is well cared for

Tesco sources all of its fresh milk from over 600 British farmers, who make up the TSDG. Set up in 2007 to address the uncertainty faced by British dairy farmers caused by volatility in the markets, it has continued to be integral to the way the retailer has created fair and sustainable partnerships with producers, growers and farmers across British Agriculture.

Tesco’s Commercial Director for Fresh Food Matt Simister said:
“For almost a decade we have worked with our dairy farmers to provide the best possible quality milk, produced to the highest standards for customers. Through the direct long term partnerships with our producers and the Fair For Farmers Guarantee,  shoppers can been confident that every pint of own-brand milk they buy from Tesco, fosters a better future for hundreds of British dairy farmers.”

“Because we use an independent price tracker to calculate the current costs of feed and  fuel for our farmers every quarter, we are able to reflect the changes in our farmers’ real costs so that they are not left disadvantaged.”

TSDG Farmer and Committee Chairman James Stephen said:
“Tesco‘s Fair for Farmers Guarantee and their long- term commitment to work with us directly through the TSDG, gives us a level of certainty so that we can plan for the future.  This is vital if we want a truly sustainable future for the British dairy industry.”

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 is 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.

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.

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

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

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Tesco to pay its dairy farmers 28.71 ppl for their fresh milk for the three months from 1st August
Tesco to pay its dairy farmers 28.71 ppl for their fresh milk for the three months from 1st August

Source: Tesco

Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Bradford, England, 2015-8-11— /EPR Retail News/ — Morrisons is to launch a new milk brand where ten pence-per-litre of the retail price will go directly to dairy farmers.

The new brand “Morrisons Milk for Farmers” will go into all stores in the autumn and is aimed at shoppers who want to directly support dairy farmers. It will sit alongside Morrisons standard-priced own brand milk in the dairy aisle.

Morrisons’ Corporate Services Director Martyn Jones said: “We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families. We want to reassure the industry that the retail price we charge for Morrisons milk reflects the highly competitive retail market. It is not linked to the price we pay our milk suppliers.

“We want to offer practical help by launching a range of 4-pint milk at a retail premium of 10p per litre, all of which will be passed back directly to dairy farmers. We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly.”

Morrisons is also today giving more details of how it pays for milk from its majority supplier Arla, which buys milk from farmers.

Martyn Jones said: “We also want to clarify that our current three year contract with Arla, who supply the majority of our milk, uses a cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price and other commodities such as diesel and plastics that influence the cost of milk.

“We can confirm that we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead.”

Full Statement from Morrisons

“We recognise that the current market for liquid milk is impacting on hardworking dairy farmers and their families. We want to help. Firstly, we have asked our milk suppliers not to pass on further decreases in the current farmgate price to us, but to share any benefit with the dairy farmer instead. We want to offer practical help by being the first supermarket to launch a range of 4-pint milk at a premium of 10p per litre, all of which will be passed back directly to Arla farmers. We will stock this product in all our stores, offering our customers the choice to support dairy farmers directly. We also want to clarify that our current three year contract with Arla, who supply the majority of our milk, uses a cost model that automatically adjusts the price that we pay for milk, based on a combination of the independently set farmgate price and other commodities such as diesel and plastics that influence the cost of milk.”

Media contact
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Available 24 hours

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Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Morrisons to launch new milk brand where ten pence-per-litre goes directly to dairy farmers

Free guide on feeding dairy cows now available to all dairy farmers to download via the Morrisons Farming website

Bradford, England, 2015-2-27 — /EPR Retail News/ — A free guide on feeding dairy cows, which has already been posted out to Arla farmers, is now available to all dairy farmers to download via the Morrisons Farming website.

Written by the leading experts in their fields and edited by dairy farmers, the guide has been produced by the Morrisons and Arla project group. The guide has been produced independently of animal feed companies, and contains free impartial advice on many different feeding regimes and additives.

Andrew Loftus, Morrisons Agriculture Manager said: “Feed is one of the biggest costs in dairy farming and yet very little independent information is available – the majority is produced by those with a commercial interest in selling a product.

It is the sixth report produced by the group, most of which can also be downloaded free of charge from the Morrisons farming website, including guides to Neospora, Dairy Housing and Grassland Soils and Fertilisers (2011)

Doug Lund, a North Yorkshire Dairy farmer and chairman of the Working Group that edited the guide commented: “This report aims to give you the genuinely independent advice you need to make the best decisions for your business. This sort of information has never been more important – we hope other farmers gain as much from it as the project group did.”

The guide can be located for download at http://www.morrisons-farming.com/

Media contact

For all media enquiries call
0845 611 5111
Available 24 hours