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Over 120 First Milk producers became either core or seasonal suppliers to Tesco on 1st August. Some four months on, Local Representative for Monmouthshire and Glamorgan, Clive Prichard, shared his thoughts on the experience with the wider membership while Jeff Halliwell, Managing Director of our cheese business, outlines his thoughts on the wider benefits.

“Initially Tesco’s move was met with a degree of scepticism across the industry, and many First Milk members shared that view. But as the retailer has demonstrated its commitment to working with farmers all negativity in this part of the world has evaporated. People are looking at Tesco through new eyes. I certainly am. They want to work with us. They want a partnership and to take the industry forward.

Standards

“While Tesco First Milk members are paid a higher price, it’s not all one-way traffic. We are expected to do certain things in return, and our production standards have to be higher. As a result our costs will be more. If we don’t meet the standards we won’t be included on the scheme.

Core members will, for example, have to milk record, need to produce milk with a bactoscan below 50 and cell counts below 250, have to locomotion score their cattle every two months and all of us are not allowed to export calves from 1st February 2008. There will be additional costs, and extra administration. Not all of the premium will end up as additional profit. The standards we need to produce to are higher than for a conventional member.

Both Tesco and First Milk Academy are helping members to achieve the new standards. The Academy has already held mastitis meetings in conjunction with the MDC and Tesco has held locomotion scoring workshops to help farmers meet the new standards.

Open Doors

Jeff Halliwell, managing director of First Milk’s cheese business, says that the relationship with Tesco built through the Tesco Sustainable Dairy Group, is helping to open doors for us elsewhere within the Group.

“We have demonstrated that we can work closely with the largest supermarket group in the UK and we have shown them the quality of our business and the quality of our membership. This has lead to a closer, mutually beneficial relationship and we are already working with them on a range of opportunities for the cheese business. In today’s market, close working relationships with your customers are critically important in delivering success.”