FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Tesco agrees to pay milk farmers more money

In a surprise move it has been revealed that Tesco will increase the amount of money paid to farmers in the UK regarding the supply of milk by 1.28 pence to 28.18 pence per litre. However, the new rate, which is well above the market average of 25.77 pence per litre, will only be available to companies who are part of a Tesco Sustainable Dairy Group. So what will this mean for UK consumers?

Consumers are unlikely to see any material impact upon the price of a litre of milk in supermarkets across the UK, at least in the short to medium term. It is no coincidence that the price which supermarkets around the UK have been paying farmers for the delivery of milk has often been at the centre of alleged price fixing allegations. Quite how supermarkets such as Asda, Morrisons and Sainsbury's will react to the move by Tesco remains to be seen but milk is often seen as a loss leader to attract consumers to various parts of supermarket stores.

Many experts believe that the supermarket sector will be more competitive than ever over the next 12 months due to a lack of price inflation on food items and wider concerns about the UK economy.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue