Tesco already operates the Tesco Sustainable Dairy Group (TSDG), which was established in 2007, and which Tesco says pays a market leading price for dairy farmers who supply Tesco with milk.
Commercial director for fresh food Matt Simister said, “We have created this new cheese group to help us to meet customers’ needs whilst also establishing a long-term sustainable livelihood for our farmers.
“It is our hope that up to 200 more dairy farms across Britain who produce milk for our British cheese, in addition to the 600 producing milk through the TSDG, can work with us in partnership to create a successful and sustainable future for their production.”
Bonus for assurance scheme
Mike Gallacher, CEO of First Milk said, “This new agreement we have concluded with Tesco is about establishing a long term, progressive and sustainable supply chain partnership over the coming years.”
The price will reflect the market and will also award farmers a £0.02 ($0.03) per liter bonus – subject to adhering to the Red Tractor assurance scheme, as well as additional Tesco welfare standards, to improve cow health and welfare.
Items with the Red Tractor logo are farmed, processed and packed in the UK to an independently-verified standard of food safety, hygiene, traceability, responsible farming methods, animal welfare and environmental factors.
Reducing impact of cheese production
Currently only farmers who supply milk for Mature and Extra Mature Cheddar are part of the TSDG. Tesco said that the price dairy farmers receive will reduce the impact of the traditional time lag of the maturation period of milk to cheese production.
The new price, which is above the market price, will be set from April 17, 2016.