Tesco's New Incentive Scheme for Sustainable Dairy Farming

Tesco announced that farmers supplying milk via Muller will receive an additional 2.5p per litre if they meet targets on emissions reduction, animal health, feed efficiency, and genetic improvements. This scheme could provide £9.5 million to the 260 farms in Tesco's sustainable dairy group. The initiative is part of Tesco's longer-term agreements to ensure the sustainability of dairy farms. Recommendations from their "Greenprint for UK Farming Report" and farmer feedback emphasized the need for incentive models for sustainability. Ashwin Prasad, Tesco UK CEO, highlighted that these incentives would contribute to transitioning the UK agriculture sector to a low-carbon future. This initiative follows the "Future Dairy Partnership" with Muller and Arla aimed at reducing emissions and improving animal welfare. Rob Hutchison, CEO of Muller Milk & Ingredients, expressed optimism about building a better future for the British dairy sector through such programs.