Tesco will increase the price it pays British dairy farmers for their milk, following an independent review.
Tesco Sustainable Dairy Group (TSDG) members will receive an extra 1.02ppl for their milk from 1 November.
The price increase “reflects our commitment to recognise the true cost of the production of milk, and pay a price above that cost” said John Scouler, Tesco Commercial Director.
The news will be welcome for farmers who have seen the costs of milk production rise by 0.54ppl.
Will Hosford, dairy farmer and Farmer Committee Chairman said: “The security and confidence that Tesco provides farmers through the TSDG is more important than ever as we look to prepare for the upcoming winter.”
Tesco has invested over £180 million into the Tesco Sustainable Dairy Group since 2007.