Tesco delays milk changeover

TESCO HAS confirmed rumours that it will delay the reshuffle in its milk suppliers until April 2005.

The supermarket had said in August that it would drop Dairy Crest and increase volumes with its other two suppliers – Robert Wiseman and Arla – in the New Year.

A spokesman said the new date would help all parties because it coincided with the new farm year.

Pressure group Farmers for Action had been pushing Tesco for a postponement because the switchover is linked to a price cut at Dairy Crest.

DC has said that it will cut the price per litre of milk when it stops supplying Tesco, to offset the loss of liquid milk volumes.

Managing director of direct supplies said that April‘s price cut had not yet been fixed.

“If we didn‘t get any new business, we would have to cut the price of liquid milk, but hopefully we’ll have got some new contracts to supply by then,” he said.