Tesco UK has announced a pay increase for its British milk suppliers, after cutting the price of milk on its shelves in the UK. 

Tesco Sustainable Dairy Group (TSDG) members, which is a dedicated milk supplier group for Tesco, are set to receive the new price of at least 34.2ppl. This represents an increase of at least 0.4ppl for all TSDG farmers.

Meanwhile, the supermarket giant cut the price of its own-label milk from £1.39 to £1 for four pints, but said farmers would not be paying for such price cuts.

According to Tesco, it guarantees TSDG farmers always receive a price that is above the cost of production, making sure their business turns a profit so they can plan and invest for the future.

John Scouler, Tesco Commercial Director said: “This price is good news for the farmers who make up the Tesco Sustainable Dairy Group. It reflects our commitment to pay farmers a fair price for their milk. The TSDG has now been running for seven years and we are proud to continue to lead the way in offering dairy farmers a fair price and supporting British agriculture.”

Will Hosford, TSDG dairy farmer and Committee Chairman said: “We are now seven years into our relationship with Tesco and this announcement re-affirms the long term commitment Tesco has to its dairy farmers. We are operating in a volatile market but being a TSDG member gives us the confidence and stability we need to carry on investing for the future.”