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Tesco to pay more to milk farmers | Tesco to pay more to milk farmers |
(10 minutes later) | |
Tesco has unveiled two new measures to help increase the price UK dairy farmers receive for their milk. | Tesco has unveiled two new measures to help increase the price UK dairy farmers receive for their milk. |
In the first instance, Tesco said it would offer direct contracts to about 850 farmers, paying them 22p per litre, well above the current market average. | In the first instance, Tesco said it would offer direct contracts to about 850 farmers, paying them 22p per litre, well above the current market average. |
While this milk will not be any more expensive for consumers, Tesco is also launching a new "localchoice" milk. | While this milk will not be any more expensive for consumers, Tesco is also launching a new "localchoice" milk. |
Sourced from farms near the stores where sold, it will cost more, but offer higher returns for smaller farms. | Sourced from farms near the stores where sold, it will cost more, but offer higher returns for smaller farms. |
'Encouraging development' | 'Encouraging development' |
Tesco's two new measures have been welcomed by the National Farmers' Union (NFU). | Tesco's two new measures have been welcomed by the National Farmers' Union (NFU). |
NFU president Pete Kendall described it as "the most significant and encouraging development in the dairy industry for a very long time". | NFU president Pete Kendall described it as "the most significant and encouraging development in the dairy industry for a very long time". |
Tesco's move comes after dairy farmers recently held a number of protests against the entire supermarket sector, saying the companies were not paying them a fair or sustainable price for their milk. | Tesco's move comes after dairy farmers recently held a number of protests against the entire supermarket sector, saying the companies were not paying them a fair or sustainable price for their milk. |
"We know that some British milk producers - often through no fault of their own - have had a very difficult time for a number of years," said Tesco's commercial and trading director Richard Brasher. | "We know that some British milk producers - often through no fault of their own - have had a very difficult time for a number of years," said Tesco's commercial and trading director Richard Brasher. |
"We can all debate the causes - the abolition of guaranteed pricing, CAP reform and structural factors in the market - but the fact remains that the industry has found it very tough for a long time now. | "We can all debate the causes - the abolition of guaranteed pricing, CAP reform and structural factors in the market - but the fact remains that the industry has found it very tough for a long time now. |
"I believe that this new package of measures offers British farmers a great opportunity to work with us, get closer to consumers and grow their business." | "I believe that this new package of measures offers British farmers a great opportunity to work with us, get closer to consumers and grow their business." |
Tesco's milk announcement came a day after it denied it had a stranglehold on the UK supermarket sector. | |
Its comments came as the Competition Commission continues to probe whether the big supermarkets are abusing their market domination by limiting customer choice. | |
Tesco is the UK's largest supermarket, followed by Asda and Sainsbury's. |
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