Tesco calls on dairies to raise milk payments

18 September 2002
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19 September 2002

Tesco, the UK’s biggest supermarket group, is pressuring dairy processors to pay farmers more for their milk in a bid to avoid disruption to its supply channels.

The company wants processors to raise prices by 2 pence a litre from October.

Farmers want supermarkets to pay them more, but Tesco said that under competition law it cannot, because it does not buy directly from producers.

Farmers are to hold the first of a series of demonstrations outside six supermarket distribution depots in Scotland today.

They say it is unfair that supermarkets sell milk for an average of 45 pence a litre when they are paid 15 pence a litre - 4 pence less than it costs to produce.

SMsep2002

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