Tesco has announced that it will extend its additional financial support for British dairy farmers until mid-April this year.
Six months ago, the retailer announced it would provide additional financial provision for farmers who produce milk that goes into its own label cheddar cheese products.
The winter supplement payment, which means Tesco pays 29.58p/L and will be reflected in the cheese price that Tesco pays to the processor, was initially intended to conclude at the end of February.
However, given the inclement weather and challenges faced by First Milk farmers during these uncertain times in the dairy market, Tesco has extended the payment to support the farmers through to spring.
Through the work of the Tesco Sustainable Dairy Group (TSDG) and its collaborative partnerships with dairy farmers, Tesco recognises how challenging the winter months can be – particularly for non-TSDG producers.
The retailer has made this investment to give them further additional financial assistance until April 17, 2016 to help them cover their production costs.
Commercial Director for Fresh Foods and Commodities Matt Simister said that helping to create a sustainable dairy industry is integral to how Tesco partners with British Agriculture.
“Tesco has a long history of supporting dairy farmers and is proud of the sourcing relationships we have with them.”
We recognise that it is a particularly challenging and uncertain time in the global dairy market, which is why over the past six months, we have provided additional financial support to help our First Milk farmers.
“With the effects of the winter still being felt across the country, we are delighted to announce we have extended the supplement.”
Dairy farmers from across the UK will also receive a further boost, with the move to 100% British milk for all Tesco own label standard yoghurts from March 1.
This will see Tesco increase the amount of British milk in its standard range yoghurts from two-thirds and will help increase the demand for milk from farms across the whole country.