Tesco has today confirmed that for three months from May 1, it will pay its British dairy farmers 28.69 ppl for their fresh milk, through the Tesco Sustainable Dairy Group (TSDG).
The new price, which is 1.39ppl lower than the previous 6 months’ price, takes into consideration a reduction in the cost of feed and rising milk volumes and will be reviewed every three months.
The TSDG, which was set up in 2007 to address the uncertainty faced by British dairy farmers caused by volatility in the markets, has continued to be integral to how the retailer has created sustainable and fair partnerships with producers, growers and farmers across British Agriculture.
The largest of its kind in the retail industry, the group comprises of around 600 farmers, who supply Tesco directly with own-brand fresh and filtered milk products.
Earlier this week Muller UK decided to cut its standard milk price by 0.85p/L (1.07c/L) from May 1, 2016.
The average standard liquid milk price for Müller Milk and Ingredients will be 19.54p/L (24.73c/L) for May.
Muller has said that it has cut the milk price due to the continuing extreme market volatility coupled with high levels of global milk supply.
Earlier this month, Arla Foods cut its on-account milk price for April by 0.75p/l, the equivalent of 0.94c/L when converted to euro.
Arla said that this latest reduction, coupled with the impact of exchange rates, reduces the UK standard litre price for conventional milk down by 0.94p taking it to 20.87p/L (26.41c/L).
Arla UK held its milk price for March at 21.81p/L (27.62c/L).