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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
