Tesco’s Sustainable Dairy Group Farmers (TSDG) are set to receive more money for the milk they produce. From November 1, Tesco will increase the price it pays farmers from 30.17ppl to 31.24ppl.
The increased price follows Promar updating the annual cost tracker budget for the year to March 2019 and applying the latest feed, fuel and fertiliser adjusted prices.
The TSDG’s pricing mechanism makes sure dairy farmers get a fair price for milk that reflects the changes in the cost of production. The price is reviewed every quarter to ensure that it correctly corresponds with the current market conditions for producers, helping farmers to budget, invest and plan for the future.
Tesco Agriculture Manager Nic Parsons’ said:“We set up the TSDG over 10 years ago to serve our customers with great quality British milk and ensure farmers receive a fair price.
“We’re proud to say our partnership with British dairy farmers is as strong as ever, helping to ensure they have a sustainable long term future. Farmers can make their business decisions with the assurance they are guaranteed a fair price for every pint.”
The TSDG, was 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 how Tesco has created sustainable and fair partnerships with producers, growers and farmers across British Agriculture.