Farmer and Committee Chairman James Stephen said:"Tescos Fair for Farmers Guarantee and their long- term commitment to work with us directly through the TSDG
, gives us a level of certainty so that we can plan for the future.
Tesco guarantees TSDG
farmers always receive a price that is above the cost of production, ensuring their business turns a profit so they can invest for the future.
The PS1m investment represents a significant extra income for TSDG
dairy farmers, with the payments available for all Aberdeen Angus calves born between January 2014 and January 2015.
NFU dairy board chairman Mansel Raymond said: "We all know that costs have increased for dairy farmers and importantly Tesco is reflecting the increase in costs to its TSDG
suppliers with the outcome of its latest price review.
At the start of the month, the TSDG
reduced its milk price by 1.
The outcome of the review has cemented the TSDG
s position as an integral part of how Tesco partners with British Agriculture and serves its customers.
I understand that Tesco wants to provide value to their customers but am concerned by the strategy and by the claim that this move will not be felt by the TSDG
The price, which is fixed for six months at a time, recognises the true costs of production across different dairy farming systems, allowing the 600 TSDG
farmers to plan and re-invest in their businesses, irrespective of the market price.