Following further meetings this week, First Milk has confirmed the recent announcement that Tesco will be paying its Tesco Sustainable Dairy Group base price to more farmers supplying milk for its cheese.
These farmers will now receive a Tesco winter supplement relating to the period 31 August through to the end of February 2016. First Milk produces cheese for Tesco and other companies (via a partnership with Adams Foods) at its Haverfordwest creamery in West Wales.
This move by Tesco on the cheese they purchase from Haverfordwest creamery will directly benefit the farmers who supply the site. The Tesco winter supplement will be itemised separately on farmers’ monthly milk statements.
Mike Gallacher, First Milk’s CEO said:
“Tesco has a strong track record in supporting British dairy farmers and we warmly welcome this move on cheese. It allows us to directly pass on the benefits to First Milk farmers who supply the milk that produces Tesco’s cheese. This move will be valued by all dairy farmers and British consumers.”
Sir Jim Paice, First Milk’s chairman added:
“Tesco’s leadership here is a very significant step in building greater sustainability within the production of high quality British cheese and the dairy farmers, who produce it.
“British consumers have demonstrated their support for farmers across Britain who are receiving less than the cost of production for their milk. While we are working with others to address this situation, the move by Tesco on cheese demonstrates the difference that can be made by a company who quickly steps up to the mark and takes effective action.”
NFU Scotland President Allan Bowie commented: “The recent commitment made by Tesco to pay farmers more for the milk that goes in to its own label cheese is a welcome acknowledgement of the very tough conditions being experienced by dairy farmers across the UK. By stating that it will pay more for this milk, which goes in to its own label British cheese, Tesco has made a bold statement in support of dairy farming and the credentials of the industry.
“The decision made by First Milk to pass this money exclusively to farmers who supply milk to the Haverfordwest Creamery however will not benefit Scottish farmers. Scottish members of the First Milk co-operative have contributed toward investments made at the Haverfordwest plant in recent years and it is unjustified that they will receive no reward in return for this. NFU Scotland has stressed to First Milk that the business must act in a way that benefits its members in Scotland as well as across the United Kingdom.
“We need to see other retailers follow the example set by Tesco and pass more money back to farmers, particularly over the coming winter. These commitments to pay more for milk must be beneficial for Scottish and British products alike. Scottish dairy farmers are committed to producing quality milk and we must see their dedication recognised by retailers during this critical period.”
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