Tesco backs milk price increase
Leahy meets with NFU president
September 4 2002
Tesco is backing UK dairy farmers campaigning for a better deal.
Tesco Chief Executive Terry Leahy has met with Ben Gill, President of the National Farmers Union to discuss the difficulties facing British dairy producers. The NFU is due to hold negotiations on milk prices shortly, and is looking for a increase in the price paid to farmers of at least 2p a litre.
Following the meeting, Tesco Director, John Gildersleeve said: “It is clear that British dairy farmers are currently struggling in a difficult and complex market. Tesco is committed to helping those farmers get through this and we believe that there is a strong case for them to receive a significant price increase in the forthcoming negotiations with processors.
“Whilst Tesco cannot directly deliver this price increase we can help to create a more sustainable industry which delivers better returns for producers.”
He added that Tesco is involved in detailed discussions with processors and producers on issues including pricing. The company, the UK’s biggest supermaket chain, sources sourcing 100 per cent of its milk, including organic and longlife, from UK suppliers, and has recently cut the retail price of organic milk to reduce surplus. Tesco is also increasing the amount of UK produced cheese and yoghurt it sells.
The supermarket operator cannot set the price it pays farmers directly because legally it has to buy milk through processors, and there are also constraints under competition law.
Gildersleeve said: “Although Tesco cannot offer a quick fix solution, what we can do is encourage communication and transparency and most importantly, as British Farming’s biggest customer, continue to support the industry by buying British.”
