05/04/07
The Royal Association of British Dairy Farmers has welcomed Tesco's
announcement offering direct contracts to 850 dairy producers, guaranteeing
them a farm-gate milk price of around 22ppl. The new arrangement
which it says is a ‘huge step forward', is open to all
farmers who already have contracts with Arla and Wiseman and will
fulfil 100% of Tesco's annual 930 million litre requirement.
RABDF chairman Lyndon Edwards.
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In addition, the association says that the supermarket's offer
of direct contracts to 150 smaller family owned dairy farms to supply
its newly launched ‘localchoice' brand in return for
a 6ppl premium, is equally good news. The offer is available to Dairy
Farmers of Britain suppliers with less than 100 cow herds.
“This is a very positive sign in the market place,” comments
RABDF chairman, Lyndon Edwards. “We are pleased and relieved
that Tesco has recognised the need to ensure a sustainable dairy
supply chain which includes the smaller family farms. It is encouraging
to see Tesco is offering a milk price that should provide farmers
with the scope to cover their basic costs. That is a huge step forward
and the break-through we have all been working so hard for.”
He adds: “However, whilst this announcement will have positive
connotations for many, both directly and indirectly, it is of paramount
importance that the remaining retailers now follow suit in order
to ensure the long term viability of the whole dairy industry.”
Sainsbury's milk price statement
CLA Welcomes Tesco Milk Price Move
Lyndon Edwards is new RABDF chairman |