The Co-operative Group has ceased business with four companies that export produce from illegal Israeli settlements.
It said it would “no longer do business with” four companies, accounting for £350,000 worth of sales.
The society, which has not taken any produce from the Israeli settlements in the Palestinian occupied territories since 2009, stressed the move was not a boycott of Israel or Israeli products.
“This extension of our policy covers engagement with any produce suppliers known to be sourcing from the Israeli settlements, where there is broad international consensus that the settlements are illegal,” it said in a statement.
“However, the group will continue to trade with Israeli suppliers that do not source from the settlements, and currently has supply agreements with some 20 Israeli businesses, a number of which may benefit from a transfer of trade.”