Tesco has revamped the contracts and incentives for the farmers behind its Finest Steakhouse range, working with a smaller, “more closely aligned” Sustainable Beef Group.
The retailer said around 200 farmers would benefit from enhanced, new three-year contracts, along with financial incentives for meeting a new set of standards.
A further 600 farmers from the TSBG were being moved onto a “simplified” Aberdeen Angus contract, which Tesco stressed would still provide producers “with the same long-term security and financial rewards”.
Its new standards will be focused on quality, breeding, animal health and welfare, and sustainability, with the supermarket insisting the contracts “support best practice and deliver improvements, while also building resilience across the supply chain”.
Tesco added it would also provide the Steakhouse farmer group a bonus incentive for “new levels of traceability through whole-life assured cattle”. The investment is set to be worth up to £3m over the first three years. Additionally, the farmers will be financially supported to take part in Tesco’s environmental baselining work with Soil Association Exchange.
The measures are the latest in a series of moves made by the UK’s largest retailer to support the long-term growth and resilience of British agriculture. In May, Tesco announced an expansion of its Sustainable Pig Group.
“These changes reflect our ambition to work even more closely with our British farmers, offering long-term security, which allows them to deliver high standards of quality, animal welfare and sustainability across our beef supply chain,” said Tesco head of sustainable agriculture and fisheries Natalie Smith.
She continued: “We are giving farmers clearer opportunities to be rewarded for the standards and practices that matter most to our customers and our business.”
Foyle Food Group and Irish meat processor Kepak will help deliver the improvements.
Commenting on the development, Foyle Food Group director of procurement and agriculture Wayne Acheson said: “This contract will provide much-needed stability for many farming businesses across the UK.
“The Tesco Angus scheme remains one of the strongest models of supply chain integration in the beef industry, and we are proud to be part of its continued success,” he continued.
“It is a strong vote of confidence in British beef production and in the commitment of farmers across the Tesco Sustainable Beef Group,” added Kepak head of agriculture Matt Wyndham Lewis.
The move comes after Sainsbury’s announced 10-year contracts with fresh produce suppliers Evesham Vale Growers and Thanet Earth last week in a bid to increase its domestic supply of tomatoes, peppers and cucumbers.
No comments yet