Tesco to increase price it pays for fresh milk

From 1 July, Tesco will increase the price it pays from 41.59ppl to 46ppl. It is hoped the rise will help to address the current unprecedented levels of on-farm inflation.

The latest increase comes after prices were increased by close to 20% earlier this year.

The price Tesco pays its Tesco Sustainable Dairy Group (TSDG) is independently set on a quarterly basis and takes into account inputs such as feed, fuel and fertiliser, resulting in a fair price which is reflective of the cost of production.

Tesco set up the TSDG 15 years ago to address uncertainty and volatility in the dairy sector, with farmers guaranteed a stable price no matter what happens in the market, as well as ensuring they can plan for the future and invest in improvements on farm.