Morrisons is trialling a new initiative to support underpressure British farmers by underwriting all the costs associated with growing crops.
The scheme aims to help local farmers mitigate the cost and weather pressures that come from the peaks and troughs of the season, including field rent and fertiliser costs. Morrisons claims the move will give farmers greater financial security, with it shouldering all the risk.
Crops are currently being grown under the scheme on three potato farms and one carrot farm, with the first produce due to hit shelves before the end of the year and into 2024. If successful, Morrisons stated it hopes to roll out the initiative to more farms later next year.
Gareth Cosford, Senior Buying Manager for Root Vegetables at Morrisons, commented: “As British farming’s biggest direct customer, we understand the impact that higher costs are continuing to have on farmers. Therefore our trial scheme allows us to take all the risk associated with growing the crop away from our farmers and continue to grow the best quality British produce that our customers know and love.”
Participating farms so far include Naish Farms, who grow potatoes for the supermarket. Its director, Andrew Nash, said: “In farming there are ups and downs throughout the season. For us, we are seeing greater weather challenges which may impact our crops and by being part of this new Morrisons trial, they’re underwriting our growing costs to cushion us from the associated risks and provide supply security so that we can focus on growing the very best potatoes for their customers.”
NAM Implications:
- Being first confers the innovator’s advantage…
- …and others have to follow to dilute any competitive advantage arising.
