Tesco has announced plans to issue contracts worth £12 million over three years to support British potato farmers. The move will make Tesco the first retailer in Britain to provide long term contracts to potato growers and packers.
Potato growers will be afforded greater financial certainty, through the Tesco Sustainable Farming Group-Potatoes (TSFG-Potatoes), and the initiative will also give them the opportunity to invest in their businesses' future.
TSFG-Potatoes will form a collective group of producers and industry experts from across Britain.
Its focus will be to create strong relationships throughout the potato supply chain, and ensure consumers receive the best range and varieties, available at affordable prices.
British potato farmers have faced challenging growing conditions, declining consumption and an unstable market. The Group expects to take some of this pressure off the potato grower using this initiative.
Tesco’s commercial director for fresh food, Matt Simister said, “ Working collaboratively with our suppliers to ensure we provide the highest quality fresh produce for our customers is right at the heart of what we do.
“Whilst there isn’t a single simple solution to resolve the uncertainty faced by many potato growers, it’s important that we all play our part. These new contracts will help to bring more confidence back into the whole potato supply chain and build a truly sustainable British potato industry."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Aoife Lawless. To subscribe to ESM: The European Supermarket Magazine, click here.