November 16, 2007

Dairy farmers to benefit from greater Tesco milk supplies

Nearly 800 farmers across the UK are set to benefit from greater supply chain security after supermarket chain Tesco agreed a dedicated milk supply with Arla and Robert Wiseman Dairies.

 The supermarket, which announced plans to move to dedicated suppliers earlier this year, finished work to separate its supply with the two processors earlier than expected.

Dedicated farmers supplying Tesco receive 27.5p/litre, with a further price review due in March 2008.

Kari Daniels, Tesco's head of chilled foods, said the whole supply chain was already seeing a benefit from the move.

She said long term investment can improve the company's relationship with its customers through its high quality products.

The transparent price farmers are receiving allows them to better plan their business and look to the future with renewed confidence, she said.