Tesco improves cost of production contracts for lamb farmers in the UK
Tesco wants to build long-term transparent partnerships with its suppliers and farmers.
The average price for lamb will be set for 12 months, before being reviewed for the second year of the contract.
“We know many lamb farmers are looking for stability to overcome the uncertainty surrounding CAP payments, so we’re delighted to be offering these industry-leading COP contracts to 160 lamb farmers across the UK. Through our ten Sustainable Farming Groups, we’re building transparent, long-term partnerships with our farmers and producers, and our cost of production model is the next stage in ensuring our farmers have the confidence to invest in their businesses and build for the future. The door is open for more British lamb farmers to join us and take advantage of the new model,” George Wright, Tesco’s Commercial Director for Fresh Food said.
Tesco is actively looking for more farmers to join the scheme, with next year’s contracts starting on the 1 April.
The news comes just weeks after Tesco announced new contracts for its Aberdeen Angus beef farmers and the relaunch of the Tesco Sustainable Farming Group for Beef. Tesco now operates 10 Sustainable Farming Groups covering areas including lamb, beef, poultry and eggs, cheese and potatoes.
Tesco works with processors 2 Sisters, ABP and Linden
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