Tesco to Raise Price of Milk for Member Farmers
UK - Tesco is raising the price it pays to its preferred group of milk suppliers by just over a penny a pint.
17 September 2010
1 minute read
The new rate of 28.18p per litre - a rise of 1.28p - will come into effect at the start of October.
Prices paid by supermarkets to farmers for tehir milk has been at teh centre of a price war and continuing argument over recent months.
A report on BBC said that the higher price from Tesco will apply only to farmers, who are members of the Tesco Sustainable Dairy Group.
Tesco has said that the new price is significantly higher than the average price of 25.77p per litre paid by otehr supermarkets.
The BBC report said the increase follows an independent review of milk farming, which found a rise was necessary because of a rise in the cost of cattle feed.
The move has been welcomed by the National Farmers Union.
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