Tesco Sustainable Dairy Group to Reduce Number of Direct Suppliers Amid Sustainability Push

While the exact number of farms affected remains unspecified, TSDG has stated that "a small number" of dairy farms will receive 12 months' notice before changes take effect. Further details are anticipated to be disclosed next month.

Bruce Mackie, Chair of the NFU Scotland Milk Committee, expressed concern over the impact on Scottish dairy farmers, noting that even after accounting for those voluntarily retiring, some farmers may still lose their contracts. He emphasized the importance of ensuring that these farms are not disadvantaged during the notice period, especially given the current volatility in milk prices and contracts.

A spokesperson from Tesco explained that the changes are aimed at allowing the retailer to purchase a higher proportion of each farm's milk, while also encouraging continued adoption of sustainable farming practices. The spokesperson added that these improvements are intended to create a more sustainable dairy group for the future.