Tag Archives: Mike Gallacher
Tesco to invest £6 million to help support British agriculture
CHESHUNT, England, 2016-Apr-07 — /EPR Retail News/ — Tesco has today announced that it will invest £6 million over two years to help support British agriculture.
The retailer has created the new Tesco Cheese Group (TCG), which will guarantee dairy farmers an above market price for the milk they produce for Tesco's British own-label Mild, Medium, Mature, Extra Mature, Red Leicester and Double Gloucester cheese. The move will deliver a fair and consistent pricing model for UK farmers, and will provide them with the security and ability to plan ahead for the future.
Building on the success of the Tesco Sustainable Dairy Group (TSDG) which was established in 2007, and pays a market leading price for dairy farmers who supply Tesco with milk to the help them manage the economic volatility of the market; the new Cheese Group is the latest addition to the retailer's programme of initiatives to support British farmers.
Commercial Director for Fresh Food Matt Simister said:
'We have created this new cheese group to help us to meet customers' needs whilst also establishing a long term sustainable livelihood for our farmers. By providing them with the assurance of our commitment, we are hoping to give our producers the confidence to invest so that they can deliver what customers are looking for in an efficient way.
'It is our hope that up to 200 more dairy farms across Britain who produce milk for our British cheese, in addition to the 600 producing milk through the TSDG, can work with us in partnership to create a successful and sustainable future for their production.
'For almost a decade we have worked with dairy farmers to offer the best possible quality milk , produced to the highest standards for our customers, whilst ensuring farmers receive a fair price for their milk. We are confident that this new initiative will enable producers, for our own-label cheese, to also plan and budget for the future; and focus on the things that matter most- meeting high animal welfare and food quality standards for customers.'
Peter Willes of Parkham Farms commented:
'Over the past 15 year's Parkham Farms has been proud to supply our great tasting cheese to Tesco. The new pricing model will ensure that we and our farmers are paid a premium price above that of the market reflecting the quality of our cheese and the milk that goes into it. We believe it will provide a long term and sustainable structure to help build our relationship with Tesco even further.'
Mike Gallacher, CEO of First Milk said:
'This new agreement we have concluded with Tesco is about establishing a long term, progressive and sustainable supply chain partnership over the coming years. While the current context is hugely challenging in dairy, we need to continue to keep focused on the long term ensuring that we put in place business models that can deliver for our customers, consumers and producers.'
The new mechanism provides clear, equitable and transparent pricing which will be set regularly throughout the year. The price will reflect the market and will also award farmers a two pence per litre bonus- in recognition that they must adhere to the Red Tractor assurance scheme, as well as additional Tesco welfare standards, to improve cow health and welfare.
In September 2015, Tesco announced it would provide additional financial provision for non- TSDG farmers who produce milk that goes into its own label cheddar cheese products.
The winter supplement payment was initially intended to conclude at the end of February 2016, but given the inclement weather and challenges faced by First Milk farmers during these uncertain times in the dairy market, Tesco extended the period until April to support the farmers through to spring and help them cover their production costs.
Currently only famers who supply milk for Mature and Extra Mature Cheddar are part of the TSDG. The new pricing model for cheese has been reviewed and standardised to make it more equitable for our producers for British cheese. The price dairy farmers receive will reduce the impact of the traditional time lag of the maturation period of milk to cheese production.
The new price, which is above the market price, will be set from the 17th April 2016.
Additional support Tesco provides British Agriculture includes:
Sustainable farming groups in lamb, beef, chicken, pork, eggs, potatoes and dairy.
Providing support for UK agriculture, with the development of a joint initiative with Anglia Famers – the ProducerClub. The club delivers support for the day-to-day running of farms and an unrivalled combination of savings and benefits
Championing young farmers in British agriculture, offering a 12 month package of training, business planning, advice and supply chain experience through the Future Farmer's Foundation.
An agriculture team, which works alongside a single product team responsible for the entire lifecycle of products.
A Supplier Helpline, where any issues raised by farmer, growers and producers are aimed to be resolved within 48 hours
For more information please contact the Tesco Press Office on
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Posted in Management, Retail, Retailer | Tagged British agriculture, Mike Gallacher, Peter Willes, Tesco |
Posted on February 16, 2016 by EPR Retail News Editors
Tesco extends financial support for British dairy farmers
CHESHUNT, England, 2016-Feb-16 — /EPR Retail News/ — As the wintry weather continues to take hold, Tesco has today announced it will extend its industry leading support for British dairy farmers.
Six months ago, Tesco announced it would provide additional financial provision for farmers who produce milk that goes into its own label cheddar cheese products. The winter supplement payment was initially intended to conclude at the end of February, but given the inclement weather and challenges faced by First Milk farmers during these uncertain times in the dairy market, Tesco is pleased to announce the payment will now be extended to support the farmers through to spring.
Through the work of the Tesco Sustainable Dairy Group (TSDG) and its collaborative partnerships with dairy farmers, Tesco recognises how challenging the winter months can be – particularly for non-TSDG producers -and has made this investment to give them further additional financial assistance until 17th April 2016 to help them cover their production costs.
Commercial Director for Fresh Foods and Commodities Matt Simister said:
'Helping to create a sustainable dairy industry is integral to how we partner with British Agriculture. Tesco has a long history of supporting dairy farmers and is proud of the sourcing relationships we have with them.
'We recognise that it is a particularly challenging and uncertain time in the global dairy market, which is why over the past six months, we have provided additional financial support to help our First Milk farmers.
'With the effects of the winter still being felt across the country, we are delighted to announce we have extended the supplement.'
Mike Gallacher, First Milk's CEO said:
'First Milk would like to thank Tesco again for their support with the Winter Supplement and welcome the news that this will be extended for a further six week period. Consumers clearly want their retailers to pay sustainable prices for British dairy products – in both cheese and milk – and Tesco, under Dave Lewis, have taken a leadership position. They deserve a great deal of credit for continuing to support British farmers who supply the milk that makes Tesco's cheese.'
Dairy farmers from across the UK will also receive a further boost, with the move to one hundred per cent British milk for all Tesco own label standard yoghurts from the 1 March. This will see Tesco increase the amount of British milk in its standard range yoghurts from two-thirds and will help increase the demand for milk from farms across the whole country.
1. The winter supplement payment was due to cease on the 28th February 2016, but will now be extended until 17th April 2016.
2. Tesco has supported First Milk farmers supplying their Haverfordwest Creamery through this period by paying First Milk the base TSDG price for the milk that goes into their cheese. This price will continue to be 29.58ppl and will be reflected in the cheese price that Tesco pays to the processor.
3. First Milk will distribute this additional income across its farmers, and will be able to provide an audit to demonstrate that farmers have received this additional payment.
4. From March 2016, all Tesco own label standard tier yoghurt will be made with milk sourced from Britain with the exception of those with protected origins – including authentic Greek Yoghurt and French Fromage Frais.
Posted in Financial, Management, Retail, Retailer | Tagged British dairy farmers, Matt Simister, Mike Gallacher, Tesco |