Tesco is to issue new long term contracts worth £12 million over the next three years to British potato growers and packers.
Through the Tesco Sustainable Farming Group – Potatoes (TSFG-Potatoes), growers will benefit from greater financial certainty, allowing them to invest in their businesses for the future. The group will consist of producers and industry experts from across the country, and will aim to build stronger relationships through the whole supply chain to ensure customers are offered the best range and varieties at the right price.
Matt Simister, Tesco’s Commercial Director for Fresh Food explained, “Working collaboratively with our suppliers to ensure we provide the highest quality fresh produce for our customers is right at the heart of what we do. Whilst there isn’t a single simple solution to resolve the uncertainty faced by many potato growers, it’s important that we all play our part. These new contracts will help to bring more confidence back into the whole potato supply chain and build a truly sustainable British potato industry.”
Under the new scheme, from September, producers will be given direct contracts with Tesco and a three year rolling commitment which will guarantee in advance, the volume of the crop that the supermarket will buy. Growers will also receive a price, based on their production costs, which will take into account inflation, farming inputs like the cost of fertiliser and the additional expenses involved in growing high quality fresh produce for customers.
Potato grower Crawford Black from Fife, Scotland added “These new three-year rolling contracts will give my family business more confidence to look further ahead, make plans and invest for the future, safe in the knowledge that we have a long-term commitment from Tesco to continue to work with us.”
Photo Caption: Tesco says the new contracts will help the industry
Photo Credit: Tesco