Tesco has today announced a new partnership with milk producer, Muller Milk and Ingredients. The new agreement is part of Tesco's commitment to create long-term, sustainable partnerships across its supply base and will see the two companies work together to improve the quality and freshness of milk for customers. Tesco will continue to lead the industry by developing incentives for farmers who are focused on delivering quality and value for customers whilst driving up and maintaining the highest level of animal health and welfare standards.

The partnership will also see Tesco collaborate and work with farmers and dairy processors to help secure the future of British dairy farming at a time of change for the industry.

Tesco Commercial Director for Fresh Food Matt Simister said: 'Developing trusted, long-term partnerships with our suppliers is central to providing the best quality for our customers. Tesco has a proud history of supporting British dairy farmers and this agreement with Muller Milk & Ingredients will create the most sustainable, progressive and customer-focused partnership in the dairy industry.'

MD of Müller Milk & Ingredients Andrew McInnes said:'Our fresh milk and ingredients business has been a key supplier to Tesco since 1993 and we are delighted to build on this long term partnership. We aim to be the best milk and ingredients business in the UK and we share with Tesco a desire to place a strong emphasis on innovation, adding value, quality and close collaborative working relationships throughout our supply chain from farm to factory to store.'

Tesco will maintain its long-standing relationship with Arla after agreeing a new supply partnership with the milk producer. Through the partnership, Arla and Tesco will continue to work together on the Tesco Sustainable Dairy Group which guarantees farmers a fair price for their milk.

They will work closely with producers aligned with the programme, whilst delivering the best quality milk for Tesco customers. The retailer will also work with Arla to build its significant branded business in dairy.

The new strategic partnership with Muller is the latest in around twenty agreements that Tesco has in place to deliver high quality fresh food. The long-term partnerships allow Tesco and its supply partners to create more integrated and shortened supply chains which allow farmers, growers and processors to invest directly in standards, animal welfare and innovation.

Other Tesco Strategic partners include: Samsworths, Hilton Food Group, G's, AMT and Branston.

Last year, Tesco pledged to:

  • Continue to pay a market leading and fair price for its liquid milk, which is at least the cost of production.
  • Look to expand support for Britain's dairy farmers, by increasing the number of direct relationships by around a quarter.
  • Provide dairy farmers with a clear and transparent pricing mechanism.
  • Recognise the recent industry changes and ensure the TSDG is future-proof, with all partners working together to manage and share risk.
  • Provide practical support for Tesco dairy farmers and opportunities to share knowledge and expertise, in order to improve animal welfare and encourage innovation.

Notes to Editors

  • Recent structural changes to the dairy industry include the acquisition of Dairy Crest Dairies by Müller.

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01707 918 701
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Tesco plc issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 January 2016 17:17:21 UTC

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