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

Tesco strengthens its relationships with its suppliers with new Fair For Farmers Guarantee on all of its fresh milk

CHESHUNT, England, 2016-Jul-02 — /EPR Retail News/ — Tesco has today 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 recognized 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.

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.

Source: Tesco

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.