Tesco has followed a pledge to guarantee above cost of production payments to its beef farmers last week by introducing similar contracts for lamb suppliers.

Some 160 new contracts have been awarded to members of Tesco’s Sustainable Farming Group for lamb, representing a multimillion-pound investment in the British lamb sector.

“Many farmers are looking for stability to overcome CAP payment uncertainty, so we’re delighted to be offering these industry-leading contracts,” said Tesco commercial director for fresh food George Wright.

The proportion of lamb sold by Tesco that was British rose from 50% last June to 70% this year [AHDB Lambwatch].