Lidl GB has announced plans to invest £500m to help bolster the British pork industry.
The discounter stated that its investment will ensure the “continued production of high-quality British product at the best possible prices for customers”.
Lidl is the fourth-largest retailer in the fresh pork category, with an 11% market share. It highlighted that the sector has faced a number of challenges, including rising costs, a Chinese import ban on EU pork, and butcher shortages, which led to a significant backlog of pigs and financial worries for producers.
The move is part of a doubling down by the discounter on its support for British producers through the introduction of its new ‘Lidl Pork Standard’. As part of the new standard, Lidl has moved pork producers to an open-book producer costing model that includes the on-farm cost of production, guarantees minimum producer volumes, and includes a fixed margin for farmers. The change was developed in collaboration with pork producers through its newly created ‘Lidl Pork Producer Group’, with the retailer saying it recognises the need for a more sustainable pricing model within the pork sector for suppliers and farmers.
Through the new pork producer group, Lidl will fund research and development projects for the sector. Lidl is also investing in assessing the carbon footprint of all the farms in its pork producer group and subsequently putting plans in place to reduce these emissions.
The latest investment follows Lidl’s injection of over £14m into the industry in 2022 when the market price fell far below farmer cost of production. It noted that it was one of the first retailers to react, increasing the price paid to farmers to ensure it was above market price on three separate occasions.
“This latest investment underlines our commitment to British producers, animal welfare and the environment,” said Richard Bourns, Chief Commercial Officer at Lidl GB.
“Acknowledging the challenges faced by the industry and its farmers in recent years, we recognised the need for intervention and the development of a bespoke solution addressing these challenges. That’s why we’ve been working closely with our suppliers and farmers, including major partners such as Cranswick and Pilgrim’s, to ensure we understand the intricacies of this supply chain and are well positioned to deliver impactful change.
“With our pork market share significantly greater than our broader market share, it highlights the substantial influence we have in this area and we’re embracing our responsibility to drive positive change. Our new pork standard is all about supporting our rural communities and ensuring the resilience of the sector while providing customers with high-quality British pork at affordable prices.”
Commenting on the move, Lizzie Wilson, Chief Executive of the National Pig Association, added: “The NPA welcomes the introduction of Lidl’s pork producer contracts and its continued commitment to ensuring a sustainable domestic supply of British pork.”
