The amount of money Tesco pays to its dairy farmers for milk will be reviewed neutrally once every three months by Promar, an international agricultural consultancy group, fginsight.com and ibtimes.co.uk report.
The move comes following the Tesco Sustainable Dairy Group’s (TSDG) first self-assessment since its foundation in 2007.
The quarterly review system takes into its consideration fluctuations in the prices of animal feed, fertiliser and fuel. The TSDG incorporates about 650 dairy farmers across Britain, and is the nation’s largest such group.
Tesco’s commercial director for fresh food and commodities, Matt Simister, says the deal is “progressive, fit for the future and, importantly, one that we can continue to be proud of for many years to come.”
“We believe if we are going to make British agriculture more competitive we need a culture of continuous improvement through the supply chain,” he added.
Chief dairy adviser of the UK’s National Farmers Union, Sian Davies , commented, “This progressive and balanced review has given Tesco the opportunity to reflect on all aspects of their TSDG model.
"We believe that changes were necessary for the long term sustainability of the group and to deliver value to both Tesco and its customers."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.
