New Tesco Cheese Group will pay bonus farmgate price

Published 8 April 16

Tesco has set up a new Tesco Cheese Group (TCG) which will pay dairy farmers an “above market” price for milk used to make part of its cheese range. The retailer says it will invest £6m over the next two years to give its TCG farmers a 2ppl bonus above the cheese market price.

Up to 200 farmers supplying milk used in Tesco’s British own-label Mild, Medium, Mature, Extra Mature, Red Leicester and Double Gloucester cheeses will be part of the group. First Milk’s Haverfordwest factory and Parkham Farms supply these cheeses for Tesco and the retailer says the new price will be set from 17 April 2016.

In order to receive the 2ppl bonus, farms will need to adhere to the Red Tractor assurance scheme, as well as meeting additional Tesco standards.