British retailer Morrisons has announced plans to make immediate payments to farmers and local food manufacturers in a bid to deal with the coronavirus crisis in the country.
The initiative will help smaller suppliers in maintaining cashflow during the epidemic.
The retailer has temporarily reclassified its ‘smaller businesses’ category, which includes suppliers with a turnover of £100,000 of a year, to include businesses with a turnover of £1 million per annum.
The move will help the retailer to add around 1000 small food businesses in the new payment scheme.
'Highly-Resilient Food Supply Chain'
Environment secretary, George Eustice said, “These measures will support our farmers and food producers in their vital work of feeding the nation. We already have a highly-resilient food supply chain in this country and I am continuing to work closely with Morrisons and other retailers on their response to coronavirus.
“The government has pledged £30 billion in this year’s Budget for those affected and we’ve been clear that we will do whatever it takes to support people and businesses.”
Around 3,000 small suppliers including 1,750 farmers will benefit from the move, the retailer said.
The temporary payment scheme, scheduled to commence from next week, will be reviewed in the end of May this year.
Chief executive of Morrisons, David Potts, commented, "We are Britain’s biggest single food maker and we want to be there for the smaller food makers, farmers, and businesses that supply Morrisons.
"We’re a British family business and we will be doing our best to support them through this challenging period."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.