Tesco to improve dairy industry support

British supermarket Tesco has announced that its biggest farming group, the Tesco Sustainable Dairy Group (TSDG), is aiming to expand the amount of dairy farms it supports by a quarter.

Matt Simister, commercial director for Fresh Food, Tesco, told DairyReporter: “Tesco has a long and proud history of supporting British dairy farmers and we recognise the many challenges they face.

“We’re also committed to helping customers by providing the best quality British produce every time they shop with us. So it’s crucial to us and our farmers we continue to evolve the most sustainable, progressive and leading dairy group in the UK.”

TSDG

The TSDG was set up in 2007 to address volatility for British farmers in dairy markets, and comprises around 600 fresh and filtered milk suppliers.

It states its core principles as having a transparent and clear pricing mechanism using an independent cost tracker; paying a fair price for milk and rewarding those who help us to deliver the best quality milk for customers and the highest animal health and welfare standards; and ensuring Tesco has a sustainable approach to the dairy industry.

Simister added: “By maintaining our above the cost of production model and focusing on delivering quality, value, innovation and service for our customers, we are confident it can continue to be a standard bearer for the industry.”

Review

Tesco has just completed its first ever review of the TSDG ‘to adapt to the significant changes that have taken place in the dairy industry since the TSDG’s inception in 2007’. 

The supermarket has also announced the launch of a new platform to nurture and introduce young farmers looking to move into the dairy industry. The TSDG revisions will come into force in February 2016.

TSDG Farmer and committee chairman James Stephen said: “As a lifelong dairy farmer, I’ve seen first-hand how uncertainty has impacted so many of my farming colleagues.

“This is why the Tesco Sustainable Dairy Group is so important; it provides members with the valuable security and peace of mind, which is often lacking in the increasingly volatile market. So we can focus on what matters - providing the best quality milk and standards for our customers.”

Tesco’s Dairy Centre of Excellence at Wood Farm in Cheshire supports the TSDG by developing best practice in fields such as animal health, wellbeing, nutrition and productivity.