British retailer Tesco has announced that it is relaunching its Sustainable Farming Group for Beef, with the aim of guaranteeing a price above standard market rate for more than 1,600 UK Aberdeen Angus beef farmers.
The herds are raised throughout the country, and provide the retailer with its own-brand Tesco Finest steaks, joints, and mince.
The agreement will be the tenth of its kind, reached in areas such as dairy, pork, lamb, poultry, eggs, potatoes and brassicas.
The retailer said these groups promote discussion around sustainable production, customer needs, quality standards, and ways to foster communication between Tesco and its suppliers. They are also a way of maintaining supply, increasing efficiency, and enhancing animal welfare.
Long-Term Relationships
Speaking on the agreement, George Wright, Tesco’s commercial director for fresh food, said,"We’re committed to building long-term, transparent partnerships with our suppliers, growers and farmers.
"These new contracts and the reformation of our Sustainable Farming Group for beef strengthens the partnerships we have with our farmers and means they can build their businesses and invest for the future, while providing our customers with the best quality British beef."
David Knox of Foyle Group, one of Tesco’s beef processors, commented, "The new contract will help secure long term sustainability for the beef sector."
Purchasing Alliances
Tesco has been seeking to cut costs lately, striking a global purchasing deal with Carrefour at the start of July, which has inspired some concern in the industry.
"Buying alliances have a detrimental effect on the whole food supply chain," said Mella Frewen, director general of industry lobby group FoodDrinkEurope, at the time of the initial announcement.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.
