NFU welcomes Tesco move which reflects the real value of milk

The NFU has welcomed Tesco's decision to raise the price of liquid milk in its shops.

Although it may not translate directly into returns to farmers, the price rise will put some much-needed stability into the milk market, and send an important signal to everyone in the dairy trade about the direction in which prices ought to be moving.

NFU President, Peter Kendall, commented: "This is a much needed move in the right direction.

"As we explained to Tesco when we met them recently, tit for tat price cutting is a road to nowhere for Britain's dairy industry. It devalues the product, it puts dairy farmers out of business, and it doesn't even appear to have any worthwhile impact on sales.

"All of the indications are that consumers are more than happy to pay a price for milk that reflects the real value of the product and will give the dairy industry a sustainable future.

"Tesco appear to have recognised that and we hope and believe that their example will quickly be followed by the other major retailers."