More than 400 British farmers across Tesco’s long-standing sustainable farming groups are set to benefit from additional financial incentives and data collection support to achieve key environmental and animal welfare goals.
From September, 260 UK dairy farmers which make up a significant part of Tesco’s Sustainable Dairy Group (TSDG) and who supply Tesco’s liquid milk through processor Müller UK, will earn up to an extra 2.5p per litre of milk if key targets on emissions reduction, animal health, feed conversion efficiency and genetic improvements are achieved, with the group also taking part in a baselining exercise over the next year to establish targets for soil, water and biodiversity improvements.
Tesco estimates farmers could benefit from more than GBP 9.5m-worth of additional payments in the scheme’s first year. The move followed Tesco's announcement of the Future Dairy Partnership last year, alongside Müller UK and Arla. The partnership aimed to trial new innovations in the sector to reduce emissions, enhance animal welfare, and protect the natural environment.
Tesco has introduced similar incentive plans for a number of its other sustainable farming groups. Up to 160 farmers in the Tesco Sustainable Lamb Group (TSLG) will benefit from bonus payments for the planting of herbal leys, while Tesco Sustainable Pig Group (TSPG) farmers are set to earn incentive payments across a number of metrics, including animal welfare improvements, biodiversity and soil health, and emissions reduction. The moves follow similar payments for farmers in the Tesco Sustainable Beef Group (TSBG).
The retailer is acting on feedback from farmers it collected as part of its Greenprint for UK Farming Report, which outlined a number of recommendations for the government and the industry to ensure a transition to a low-carbon UK agriculture sector. Exploring new payment models and incentives was a key recommendation put forward by farmers.
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