Tesco and Sainsbury’s have both announced they are revising their July milk prices to bring them more in line with the rest of the market.
The two retailers had found themselves in a position where their previously announced July milk prices were significantly adrift of the prices being announced by other buyers.
As a result, suppliers in Tesco’s Sustainable Dairy Group (TSDG) through Muller will now be paid 46p/litre from 1 July for a standard liquid litre of 4% butterfat and 3.3% protein.
This is 3.65p/litre higher than the previously announced July price of 42.35p/litre.
The price for Arla Direct TDSG suppliers will be 45.75p/litre.
A statement from Tesco said the revised TDSG milk price followed continued volatility in the sector.
“It is hoped the rise will help to address the current unprecedented levels of on-farm inflation.”
Meanwhile, Sainbury’s has announced a 4.3p/litre temporary booster payment for farmers in the Sainsbury’s Dairy Development Group.
Those on Muller contracts will receive 46p/litre, rather than the 41.7p/litre announced previously, for a standard litre of 4% butterfat and 3.3% protein.
Farmers with Arla contracts will be paid 45.88p/litre, which takes into account the company’s 0.12p/litre haulage charge.