The announcement by Tesco to give milk suppliers a base price of 22ppl could be a turning point for all involved if everyone in the supply chain is open and transparent.
Extraordinary things have been taking place in the UK milk supply chain. On 3 April, Tesco made headlines with the almost unbelievable announcement that dedicated suppliers would receive a base price of 22 pence per litre (ppl). Tesco currently buys its milk from processors Wiseman (60%) and Arla (40%), totalling a near 900m litre contract. About 500 Wiseman suppliers and 350 Arla Foods Milk Partnership members will be the beneficiaries of the highestpaying contract on the market.
The 22ppl base price is almost all that is known so far. No details have been announced defining any specific membership requirements, or what adjustments for seasonality and quality would be included in the contract. Tesco has said that the contracts will run for 12 months, with the milk price reviewed every six months to ensure it
