Tesco to increase milk price by 1.02p/litre
Farmers supplying milk to Tesco will see their milk price rise by 1.02p/litre from November.
Tesco Sustainable Dairy Group (TSDG) members submitting data via Promar will receive the new price of 33.79p/litre from 1 November 2013.
Increased feed costs have caused a rise in cost of production of about 0.54p/litre and the poor winter and spring weather were affecting milk volumes, said Tesco. The 1.02p/litre increase is to compensate for these challenges, the retailer said.
“Despite the good weather we’ve experienced this summer, the dairy industry continues to feel the effects of the extreme weather at the start of the year and the market remains volatile,” said Will Hosford, dairy farmer and farmer committee chairman.
John Scouler, Tesco commercial director, said the TSDG had been running for six years, reflecting Tesco’s support of British agriculture.
“[The increase] reflects our commitment to recognise the true cost of the production of milk and pay a price above that cost,” he added.