All 600-plus producers in the Tesco Sustainable Dairy Group (TSDG) will receive at least a further 0.4ppl for their milk with immediate effect, Tesco has announced.

Those who receive the Promar supplement will be paid 34.2ppl if their supply Arla, and 34.3ppl if they supply Muller Wiseman. This reflects recent increases in prices paid by processors.

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Producers in the TSDG are paid via a contract which tracks their cost of production, calculated independently by Promar International.

The price increases cover all Tesco own label fresh milk, with the exception of organic milk.