Tesco ups milk payments to farmers
Friday 21 September 2012
Supermarket giant Tesco hiked the price it pays farmers for milk today as the dairy industry continues to battle rising feeds costs.
The 700 dairy farmers who supply the chain's own-label non-organic milk will be paid up to 31.58p per litre from October 1 - a rise of just over 2p.
The increase leaves Tesco as one of the best-paying of the biggest five supermarket groups.
Promar, an independent consultancy that sets the prices paid to farmers in the Tesco Sustainable Dairy Group, found that as well as feed costs, the poor summer weather lowered the amount of milk produced.
Farmers recently blockaded dairy processors amid proposed cuts in the amount they are paid for milk, claiming they would put many out of business.
Rival supermarket chains Morrisons and the Co-operative Group have since hiked their prices for farmers, but Tesco said today's announcement was the result of a bi-annual review and was not connected to the protests.
The price paid by Tesco includes a 0.5p per litre "supplement" for submitting financial information to Promar. Without this, Tesco's farmers will receive 31.08p per litre.
This compares with 31p at Morrisons and 29.5p at Asda. Farmers supplying Sainsbury's receive 30.56p but this can be boosted if they hit other targets such as improved animal welfare. Farmers with the Co-operative Group currently receive 29p but this will rise to 30p from October 1.
Tesco set up its Sustainable Dairy Group five years ago, guaranteeing to pay more than farmers' production costs and claims to have invested £165 million into paying above average prices to farmers.
Will Hosford, dairy farmer and Tesco farmer committee chairman, said: "This has been a very difficult, wet summer on the farm with uncertain levels and quality of conserved forage on many dairy units, compounded by the huge rise in bought-in feed costs."
Tesco commercial director Andrew Yaxley said: "This increase in the price we pay our 700 dairy farmers means they will continue to benefit from Tesco's pledge to recognise the true cost of production of milk, and always pay a price above that cost."
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Germany and ECB set for fight over money-printing
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...