Tesco raises farmgate milk price

Tesco has today (26 September) announced that members of its Sustainable Dairy Group who take part in the cost-tracker review are to get just over 30p/litre from next month.

The supermarket has increased its farmgate price for suppliers on the contract by 0.43p/litre to 30.21p/litre from 1 October, following a six-month review of farmer production costs by Promar, which showed an increase in the cost of feed, fertiliser and overheads.

Ironically, the milk price increase came on the same day the supermarket launched its “Big Price Drop” campaign, which cut the retail price of a number of items in store, including milk. 

Tesco said it had invested more than £500m in the campaign, in a bid to attract cash-strapped consumers. 

Andy Bloor, dairy farmer and farmer committee chairman said the TSDG cost-tracker gave milk producers the confidence to plan and make long-term business decisions. “This new price remains strong in the market and reflects the transparent way Tesco works with the dairy industry.”

Tesco director of dairy, Sean McCurley added: “Thanks to the security and confidence our cost tracker review provides, we have seen many of our dairy farmers able to invest and improve in their businesses. 

“From increasing herd numbers to state of the art milking parlours, to on-farm building improvements and further investment in herd health. Today more and more of our farmers are investing in their future and staying in dairy farming.”