In fall 2015, Tesco announced it would provide additional financial provision for farmers who produce milk that goes into its own label cheddar cheese products.
The payment was initially intended to conclude at the end of February, but Tesco has said that given the inclement weather and challenges faced by First Milk farmers during uncertain times in the dairy market, the support has been extended through to April 17 to cover production costs.
Helping First Milk farmers
Commercial director for fresh foods and commodities Matt Simister said, “Helping to create a sustainable dairy industry is integral to how we partner with British Agriculture.
“We recognize that it is a particularly challenging and uncertain time in the global dairy market, which is why over the past six months, we have provided additional financial support to help our First Milk farmers.”
Mike Gallacher, First Milk CEO said, “First Milk would like to thank Tesco again for their support with the Winter Supplement and welcome the news that this will be extended for a further six-week period.
“Consumers clearly want their retailers to pay sustainable prices for British dairy products - in both cheese and milk. [Tesco] deserve a great deal of credit for continuing to support British farmers who supply the milk that makes Tesco’s cheese.”
Move to 100% British milk
Tesco said that it has supported First Milk farmers supplying their Haverfordwest Creamery through this period by paying First Milk the base Tesco Sustainable Dairy Group price for the milk that goes into their cheese. This price will continue to be 29.58ppl (42.72 cents per liter) and will be reflected in the cheese price that Tesco pays to the processor.
Tesco said it is also moving to 100% British milk for all Tesco own-label standard yogurts from March 1. This will see Tesco increase the amount of British milk in its standard range yogurts from two-thirds.
The only exceptions will be those with protected origins - including authentic Greek Yoghurt and French Fromage Frais.