Welsh dairy farmers get Tesco direct deal on milk

Tesco customers in Wales can now buy milk sourced from a dedicated group of Welsh farmers.

This means the select group of Welsh producers will benefit from Tesco’s £25m ‘Direct Deal’ initiative, which raises the standard price farmers receive for milk to around 22 pence per litre.

The supermarket and its supplier Robert Wiseman Dairies are working with dairy farmers’ co-operative, First Milk, to supply Welsh milk for Tesco’s Welsh stores.

Kari Daniels, category director for chilled food said:  “The package of measures we have put in place to support the British dairy industry has been very well received, and we are pleased that dairy farmers in Wales are now going to be able to benefit.

“The response from the Welsh industry has been fantastic and I’m delighted at the speed with which we have got these contracts in place.

“We look forward to building closer relationships with those dairy farmers who supply our milk, and working with them to build a sustainable dairy supply chain.”

Peter Humphries, First Milk chief executive, said: “We are delighted to be working with Tesco and Wiseman Dairies on this initiative. It gives us the opportunity to work closely with Tesco and demonstrate the quality of our business, and the quality of our membership.”

Robert Wiseman, chief executive of Robert Wiseman Dairies added: “This deal is testament to the close supply chain relationships between Tesco, Wiseman and First Milk. We have worked together to ensure that Welsh dairy farmers benefit from the Tesco ‘Direct Deal’ initiative.”

With 60% of standard milk producers now dedicated Tesco suppliers, the supermarket is well on track with its move to segregated farms, which was announced last April as part of £25m initiative to support the British dairy industry.

Producers have been invited to sign up based on quality of their milk, welfare standards and the volume of milk required in Tesco stores.

Gwyn Jones, NFU dairy board chairman is supportive of the work which has been done. “The speed with which Tesco has put a substantial part of its scheme in place demonstrates its commitment to making it work. Its great news that so many farmers are already benefiting and we look forward to this being rolled out to the whole of Tesco’s supply chain later this year.“

About the Tesco scheme 

 • Around 850 dairy farmers are being offered contracts with an opening price of around 22p pence per litre;

• Contracts will run for 12 months and prices will be reviewed every six months based on agreed criteria such as feed, fertilizer and energy prices;

• Tesco has created a new section on its farming website – www.tescofarming.com – which will be accessible to their dedicated dairy farmers to keep them up to date with the scheme

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