Pay rise for Tesco UK’s sustainable dairy farmers

Tesco’s Sustainable Dairy Group Farmers (TSDG) in the UK will soon receive more money for the milk they produce.

From November 1, Tesco will increase the price it pays farmers from 30.17ppl (54.38¢) to 31.24ppl (56.31¢). This higher price follows Promar updating its yearly cost tracker budget for the year to March 2019. In doing so, it applies the latest feed, fuel and fertiliser adjusted prices. (Promar is an agriculture-research consultancy. Tesco pays a price for milk that reflects the cost of production, calculated from costs submitted to Promar.)

According to Tesco, the TSDG’s pricing mechanism makes sure dairy farmers get a fair price for milk that reflects the changes in the cost of production. The price is reviewed every quarter, says Tesco. This ensures it corresponds to current market conditions for producers, helping farmers to budget and plan for the future.

“We set up the TSDG over 10 years ago to serve our customers with great quality British milk and ensure farmers receive a fair price,” Tesco Agriculture Manager Nic Parsons said.

“We’re proud to say our partnership with British dairy farmers is as strong as ever. This helps ensure they have a sustainable long-term future. Farmers can make their business decisions with the assurance they are guaranteed a fair price for every pint.”

A milk levy to help Aussie farmers

Back at home, Woolworths and Coles have introduced a milk levy to help provide short-term relief to drought-stricken dairy farmers.

Last month, Woolworths announced a new drought relief range. This will offer customers additional Woolworths Full Cream and Woolworths Lite Milk at $2.20 for 2L and $3.30 for 3L. The extra 10¢ per litre will go to dairy farmers in drought-affected areas. This new range will be available in Queensland, NSW, ACT and Victoria from mid-October.

Until the new range hits the shelves, Woolworths has increased its existing 3L milk from $3 to $3.30 in Queensland, NSW, ACT and Victoria. It did this, it says, to ensure drought-relief funds start flowing through to dairy farmers as quickly as possible.

Coles also followed suit, introducing the same levy. The supermarket has increased the price of its 3L milk from $3 to $3.30, with the extra money going to farmers.

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