“Milk producers supplying to the UK’s leading supermarket will receive a 20% increase in the price of fresh milk to cope with challenging market conditions.”
The 520 dairy farmers who form the 15-year-old Tesco Sustainable Dairy Group (TSDG) are expected to raise prices from 34.16p (46.11 US cents) to 40.84p (53.56 US cents) per liter. In May, the current industry lead price offered by Meadow Foods Dairy was 41.62p (54.58 US cents) lower per liter. TSDG manufacturers will also see Temporary price hikes in April to offset the current unprecedented level of agricultural inflation.
Uncertainty and instability in the dairy sector
Tesco Price Milk producers are paid quarterly Independently and takes into account inputs such as fodder, fuel and fertilizer, The result is, according to the company, a price that reflects the cost of production.
Created in 2007 by TSDG Dealing with uncertainty and instability in the dairy industry, Manufacturers guaranteed a fixed price, Whatever happens in the market, as well as producers can invest to improve their farms.
Tesco pays its dairy farmers சந்தை 300m (US $ 393.41m) at market price, Helps them to invest in animal health and welfare, carbon reduction initiatives and biodiversity development. This includes reducing carbon emissions on farms by 8.5% since 2016 and benefiting biodiversity by planting mixed herbs that promote carbon absorption from the atmosphere and promote insects and wildlife.
Dominic Morey, CEO of Tesco’s new food division, said of the increase. The company is pleased to provide significant support during such a challenging time.
Bill Higgins, chairman of the TSDG committee representing Mல்லller, said: “Tesco has taken a step forward to transform the TSDG model, following the extreme instability we as producers face in recent months. Please reflect and support us well in these unprecedented times. It strengthens our 15 year partnership.
Other milk prices are rising
Other retailers, too Announced an additional price increase. Sainsbury’s Dairy Development Group raised its April wage by 4.72p (6.19 US cents) per liter to 38.62p (50.65 US cents) (up 14%). The Cooperative Department said it was paying producers 37.97p (49.79 US cents) per liter for liquid milk in April.
The announcements came when Arla asked Retailers to improve the profitability of UK liquid milk.
As part of its 5 Year Growth Strategy Announcement in the UK, Arla Foods Managing Director Ash Amirahmadi said: “We have been pointing this out for many years. Non-profit in liquid milk Private label is not standard in the UK. It makes little or no profit to producers and is a category in the UK dairy industry where it does not provide market value to producers. This is unbearable ”
The Arla plans to explore its milk export potential in the UK As part of its Future26 strategy, it has begun testing milk transfer to its processing sites in Europe to meet its growing international sales.
Information from Dairy GlobalAdapted by Milkpoint Group.