Tesco has responded to recent criticism that it was not doing enough to support Britain’s struggling pig sector by announcing extra funding to help farmers facing surging costs.
The enhanced payment plan will see Tesco suppliers increase payments to farmers by £6.6m until August, bringing support for its farmers to a total of £10m since the start of March 2022. The supermarket stated that it will work with its suppliers to ensure the investment gets passed to farmers as quickly as possible.
The move follows the publication of an open letter to Tesco from the National Pig Association (NPA) earlier this month. It called for greater support for beleaguered pig producers facing a spike in feed and energy costs, with the trade body warning that four out of five could go bust within a year unless their financial situation improves.
In a statement yesterday, Tesco said it has been supporting the industry since the turn of the year to help tackle the other major challenge it’s faced by stepping forward and taking more pigs to help clear the backlog of animals on British farms. Since January, the retailer has taken an extra 32,000 pigs, and plans to take a further extra 22,000 in the months ahead.
The retailer has recently instigated several initiatives designed to help local pig farmers, including rolling out more fresh British pork products in its stores and running more promotions for pork. Tesco also introduced an ‘I Love British’ brand to its bacon range, with a ham product launching later this month. A 5p per pack premium from the brand is “passed onto farmers in the supply chain”.
In the longer term, Tesco stated that it would be reviewing pricing on a more frequent basis, providing more flexibility for farmers when market prices change. It added that it would also “work with UK suppliers to build a closer relationship with farmers, increase transparency in pig supply chains and ensure they are sustainable for the long term”.
Dominic Morrey, Tesco Fresh Commercial Director, said: “We fully recognise the seriousness of the situation UK pig farmers are facing and have been working closely with our suppliers to understand what more we can do to support the sector.
“On top of the increased volume of British pork we’re now offering our customers, we will be increasing payments to British pig farmers by £10m through to August this year. We know there is more to do, and we will be working with suppliers, farmers and the wider industry to drive more transparency and sustainability across our supply chains and support the future of the British pig industry.”
Jim Brisby, Chief Commercial Officer for key Tesco pork supplier Cranswick, added: “We’ve been working with Tesco to find a more sustainable way of paying our farmers for pigs, and we are pleased with the progress we have made to increase the availability of British pork to Tesco shoppers, and are continuing to work with the team to significantly increase these volumes even further over the next few months.
“The announcement today regarding the increased prices paid to British farmers will also help to support those farmers supplying Tesco.”
NAM Implications:
- This begs the question re what the other mults are doing to follow Tesco’s example?
