Tesco Announces TSDG Cheese Trial

24 Oct 2013 --- Tesco has announced it will trial the extension of its sustainable dairy model to include its British cheddar producers. The trial will involve 30 farmers in Devon who supply milk to Parkham Farms cheesemakers. These farmers produce 100% of the milk needed for Tesco mature and extra mature cheddar.

This builds on the success of the Tesco Sustainable Dairy Group, which was established in 2007 to address the uncertainty facing British dairy farmers caused by volatility in the markets.

During the course of the trial, which starts on 1 November, they will be paid 33.79 which includes 0.5ppl to submit their costs to Promar. This is the same price paid to liquid milk producers from the same date, and is based on independent review of the costs of production. The trial will help establish what the costs of production are for milk for cheese.

John Scouler, UK Commercial Director at Tesco said: “Since we launched the TSDG in 2007, we have invested £180 million into paying an above-average price to British dairy farmers, improving cow welfare and environmental standards, and a next generation scholarship programme.  This trial means we can offer similar support to the dairy farmers who provide milk for our cheese.  We’re looking forward to reviewing the results, and establishing how we can help secure the future of a prosperous, sustainable British cheese industry.”

Peter Willes of Parkham Farms said: “Tesco has taken an impressive and important step to ensure the milk producers we work with are paid a sustainable price.  Nobody else in the industry offers this level of confidence to dairy farmers whose milk goes into cheese.  If the trial is successful, this will make a huge difference to our farmers, to Parkham Farms, and to Tesco.”