British supermarket Tesco has completed its review of the Tesco Sustainable Dairy Group (TSDG), a group of more than 600 UK dairy farmers that supply milk directly to the retailer.

The outcome of the review, which

Matt Simister, commercial director of fresh food with Tesco, said it was crucial for the retailer and its farmers to continue to evolve the TSDG.

“By maintaining our above-the-cost-of-production model and focusing on delivering quality, value, innovation and service for our customers, we are confident it (TSDG) can continue to be a standard bearer for the industry,” added Simister.

Suppliers

The TSDG was established in 2007, giving Tesco a direct milk supply from more than 600 dairy farmers in the UK, providing for the retailer’s liquid milk, cheddar and cream needs. Members of the group must adhere to the Red Tractor quality assurance scheme as well as additional Tesco welfare standards around cow health and welfare.

Despite the high standards required from farmers, membership of the TSDG is clearly a very lucrative and secure position for the 600 or so members, given the current crisis enveloping the UK dairy industry.

Last month, before it had completed its review, Tesco announced that it would seek to increase the number of farmers within the TSDG by more than 25%, or 150 farmers, by next spring. With the retailer paying a premium milk price compared with many of the large UK dairy processors, it seems likely the extra spots opening up in the TSDG in the coming months will be in demand.