Tesco has confirmed a new price of up to 28.18ppl for its milk

Tesco has confirmed a new price of up to 28.18ppl for its milk

UK retail giant Tesco is to raise the price it pays to some of its milk suppliers by just over a penny a pint.

Tesco today (17 September) confirmed a new price of up to 28.18 pence per litre from 1 October, an increase of 1.28ppl, for the next six months.

The higher price however, will apply only to farmers who are members of its Tesco Sustainable Dairy Group.

The retailer said the price is "significantly" higher than the average price of all other major supermarkets, which offer 25.77ppl.
 
Tesco board director, Lucy Neville-Rolfe said: "We remain committed to ensuring British dairy farmers receive a fair price for the milk they supply to Tesco that is above the cost of production. This new price remains considerably above the current market value and reflects the transparent way we work with the dairy industry."
 
The National Farmers Union (NFU) welcomed the move.

"We all know that costs have increased for dairy farmers and importantly Tesco is reflecting the increase in costs to its TSDG suppliers with the outcome of its latest price review," said Mansel Raymond, NFU dairy board chairman.
 
"It is extremely encouraging to see that Tesco is committed to its pricing formula and that the TSDG is working successfully. Tesco is benefiting from a committed, sustainable and secure supply of milk and dairy farmers are receiving greater stability, transparency and a market leading milk price, which allows them to invest in their businesses with confidence," he added.