Tesco milk price rises to 32.77p/litre for April
Tesco is adding 1.19p/litre to its sustainable dairy group price, paying members 32.77p/litre from 1 April.
The increase covers all Tesco own-label fresh milk except for organic milk, with the headline price of 32.77p/litre including a 0.5p/litre Promar supplement for suppliers who are part of the retailer’s cost tracker exercise. Group members who are not part of the cost tracker will be paid 32.27p/litre from April.
Aberdeen Angus calves by selected sires will also attract a £40/head bonus payment for the 700 group members.
The milk price increase was primarily driven by increased feed costs and the significant drop in the volume of milk produced as a result of the extreme weather, said the retailer.
The calf bonus will be paid on animals born between January 2014 and January 2015, which will supply the retailer with beef for its Finest range. The payments are being offered to increase the Aberdeen Angus numbers following the retailer’s commitment to source all its Finest range beef from the breed.
Since its creation, Tesco has invested £165m in the Tesco Sustainable Dairy Group and in paying an above-average price to farmers.
This price is reviewed every six months by consultancy Promar.