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Private Label

Tesco Extends Supplement Period For Private-Label Dairy Farmers

Tesco will extend the winter-period supplement it pays to its private-label-cheese dairy farmers, so that the higher price will continue to be paid to First Milk until 17 April, as opposed to the originally planned 28 February.

The current fiscal provision for Tesco’s dairy farmers working under the First Milk banner was originally announced six months ago. The cooperative supplies the milk for Tesco's private-label cheddar cheese.

In a Tesco press release, Matt Simister, its commercial director for fresh foods and commodities, explained the decision, saying, "We recognise that it is a particularly challenging and uncertain time in the global dairy market, which is why, over the past six months, we have provided additional financial support to help our First Milk farmers.

"With the effects of the winter still being felt across the country, we are delighted to announce we have extended the supplement."

First Milk’s CEO Mike Gallacher, said, “First Milk would like to thank Tesco again for their support with the winter supplement and welcome the news that this will be extended for a further six-week period.

"Consumers clearly want their retailers to pay sustainable prices for British dairy products – in both cheese and milk – and Tesco, under Dave Lewis, have taken a leadership position. They deserve a great deal of credit for continuing to support British farmers who supply the milk that makes Tesco’s cheese."

© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.

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