FUW MILK CHAIRMAN FUMING OVER TESCO'S UNFAIR PRICE RISE

Farmers' Union of Wales milk and dairy produce committee chairman Eifion Huws today expressed strong disappointment at Tesco's announcement that it will increase its base milk price to farmers by just 0.75 per cent.

"Dairy farmers had been expecting a rise from their average of 24-25p per litre to over 30p before Christmas but I am fuming that this now looks totally out of hand," said Mr Huws, an Anglesey dairy farmer.

He was also annoyed about Tesco's intention to pay 28.75ppl from October 1 to March 31 for those farmers signed up to Promar Farm Business Account costings but those not signed up will receive only 28.25p.

"As other companies were waiting for Tesco to announce its price first, many farmers were staying in the industry thinking they would get 30p or over before Christmas. I have been saying all along that this would not be the case and I have been proved right.

"This will not give the industry any confidence at all. I also think it's unfair for Tesco to ask farmers to sign up to Promar when there are other companies and businesses that can give the same service and some of them charge cheaper rates.

"I think it is wrong to request producers to sign up to one specific company or, in effect, receive a price cut. I think it is very unfair and rather heavy-handed."

Yesterday, Tesco announced a 14.1 per cent increase in group sales to £28.1bn for the first-half of this year with a pre-tax profit of £1,453m - up 10.3 per cent on the same period last year.