A New Deal For Dairy Farmers From Tesco



The country’s dairy farmers have had a tough year so far. With milk prices dropping as global supply rises, the situation reached fever pitch towards the end of summer with demonstrations as dozens of farmers left the business. In addition, a number of supermarkets publicly sought to tackle their plight by pledging higher milk revenues with their equivalent of ‘fair trade’ milk brands.

The latest supermarket to make amends is Tesco, which this week announced that it was looking to establish a new deal with dairy farmers in the wake of the chaotic summer. The company has written to farmers outlining terms that include reviewing the price it pays every three months, rather than every six months and ranking suppliers based on their performance, with the worst potentially losing their deals. Tesco will remove a cause that allowed it to shift the price for milk to the wider market price if it was significantly lower. In return, the company asks all farmers to submit their accounts to Proma, an independent consultancy, so that it can properly analyse the price it pays for milk.

Morrison’s and Aldi have also pledged to raise the price they pay for milk. These prices, along with new approaches to making savings through the reduction of overheads and consumables could help to turn an ailing industry back around into profit. One such practice is the harvesting of rainwater and another is the storage of bulk bought commodities such as molasses and liquid fertiliser. To find out more about Enduramaxx rainwater tanks, molasses tanks and liquid fertiliser tanks, click here!

Customer comments

No comments were found for A New Deal For Dairy Farmers From Tesco. Be the first to comment!