Tesco to Invest £25 Million in British Farming
Tesco will become the first retailer in the UK to work directly with beef and pork farmers through a new £25 million annual investment in British agriculture. In a move designed to help take the pressure off British farmers following rising feed prices, the retailer will create two new groups, run by committees of farmers, which will guarantee beef farmers an above market price for their meat and a price linked to the cost of feed for pork farmers.
In an industry first, farmers in the groups will be given direct contracts and in response to requests by the farming community, these will last for up to 36 months, giving livestock farmers more security, the ability to plan ahead and a guaranteed fair price for their meat.
Derek Lawlor, Meat, Fish and Poultry Director at Tesco, says: “As British agriculture’s biggest customer, we’re delighted to be announcing this new way of working with British beef and pig farmers. Pig farmers have been under pressure with significant rises in feed prices so it means a great deal to work in partnership with them and British beef farmers to help secure the industry’s future in this country. Not only will our customers enjoy even more high quality, high welfare British meat in our stores, the Tesco Sustainable Farming Groups, like our pioneering dairy group before them, will guarantee farmers a fair price for their meat and allow them to invest and plan for the future.”
Tesco will work directly with around 140 pig farmers who will supply the retailer with the majority of its own brand fresh pork. With feed prices liable to fluctuations outside the control of farmers, the scheme will see prices for meat reviewed on a monthly basis with feed taken into account.
The retailer will also work with around 1,000 beef farmers who will supply Tesco with all its Finest brand beef. This will be reared exclusively from Aberdeen Angus cattle.
All livestock farmers in the Tesco Sustainable Farming Groups will be offered contracts up to 36 months, to make sure they can plan for the future. The new way of working is likely to affect up to 10% of pork and beef farms in the UK, with livestock in both groups reared to meet Tesco’s high welfare standards.
