Tesco Confirm Pay Rise For Milk Producers

Tue, 01 Apr 2008
 
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Tesco has agreed to raise the price it pays it farmers for their milk by a further 0.5p per litre.

The supermarket giant will now pay the 800 milk producers who supply its milk through processors Robert Wiseman Dairies and Arla Foods UK 28ppl until the next price review is scheduled to take place in October.

A spokeswoman for the retailer commented: "Even though commodity prices such as bulk cream, skimmed milk powder and whole milk powder have gone down over the last few months, we understand that there has been concern amongst our farmers about rising costs .

"This price rise means we are paying 28 pence per litre, which is the highest price being paid by any major supermarket for liquid milk .

"We hope this will reassure our dedicated pool of farmers that we remain committed to them and the future sustainability of the British dairy industry," she added.

In response to the announcement, Willie Lamont, Chairman of NFU Scotland Milk Committee, said that the move is a "small step in the right direction" and will help alleviate the rising costs being placed on Scotland’s dairy farmers .

But Mr Lamont added that despite the rise making it possible for most farmers to cover their production costs, the move "still leaves little room to reinvest in businesses", a factor which he stressed has "already been put on hold for at least 10 years due to poor prices".

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