FDBusiness.com

As the wintry weather continues to take hold, Tesco has announced it will extend its support for British dairy farmers. Six months ago, Tesco announced it would provide additional financial provision for farmers who produce milk that goes into its own label cheddar cheese products. The winter supplement payment was initially intended to conclude at the end of February, but given the inclement weather and challenges faced by First Milk farmers during these uncertain times in the dairy market, Tesco has announce the payment will now be extended to support the farmers through to spring.

Through the work of the Tesco Sustainable Dairy Group (TSDG) and its collaborative partnerships with dairy farmers, Tesco  recognises how challenging the winter months can be – particularly for non-TSDG producers -and has made this investment to give them further additional financial assistance until 17^th April 2016 to help them cover their production costs.

Tesco Commercial Director for Fresh Foods and Commodities Matt Simister says: “Helping to create a sustainable dairy industry is integral to how we partner with British Agriculture. Tesco has a long history of supporting dairy farmers and is proud of the sourcing relationships we have with them. 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.

Mike Gallacher, Chief Executive of dairy co-operative First Milk, comments: “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.”

Dairy farmers from across the UK will also receive a further boost, with the move to one hundred per cent British milk for all Tesco own label standard yoghurts from the 1 March. This will see Tesco increase the amount of British milk in its standard range yoghurts from two-thirds and will help increase the demand for milk from farms across the whole country.