AN AGRICULTURE leader has said a milk price increase by Tesco is not enough to sustain East Lancashire’s dairy farmers.

The supermarket giant has upped the price it pays to members of its Sustainable Dairy Group (TSDG) from 26.9p per litre to 28.2p per litre.

Tesco said the price was ‘considerably above’ what other buyers would offer and ensured a ‘fair’ deal for farmers.

But Andrew Rothwell, group secretary of the National Farmers’ Union’s East Lancashire branch, said a price above 30p was needed.

He said: “We are obviously not going to turn this price increase away because it is still the top price in the market.

“But to put some sustainability into the market the price should be above 30p.

“The NFU believes that it needs to be higher because of all the capital expenditure farmers have to contend with.

“The new Tesco price may be the top price but it does not mean it its the right price.”

Mr Rothwell said that the past 30 years had seen hundreds of Lancashire dairy farms wiped out by low milk prices.

And today’s East Lancashire dairy farmers are contending with high cattle feed prices and increased fuel fees.

Despite that, Tesco said its new price, which takes effect from October 1, represented a good deal for the 800 members of its TSDG, 50 of whom are in Lancashire.

The supermarket said that, compared with 28.2ppl, the average price offered by rivals Asda, Morrisons and Sainsbury’s was around 2.4p less.

Tesco director Lucy Neville-Rolfe said: “We remain committed to ensuring British dairy farmers receive a fair price for the milk they supply to Tesco that is above the cost of production.

“This new price remains considerably above the current market value and reflects the transparent way we work with the dairy industry.”