Tesco improves production contracts for lamb farmers

The announcement was made at the Royal Welsh Show, taking place this week in Llanelwedd. A third of Tesco’s farmers are based in Wales. The contracts will be set for 12 months and will be reviewed for the second year.

All of its lamb farmers are part of Tesco’s Sustainable Farming Group for lamb, which was set up in 2014 to strengthen the retailer’s relationship with British lamb farmers and processors. The group meets on a regular basis to share knowledge and customer insight, as well as best practice around sustainability and animal welfare.

Tesco’s commercial director for fresh food George Wright said lamb farmers were looking for stability to overcome the uncertainty around CAP payments.

“Through our 10 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​,” said Wright.

“The door is open for more British lamb farmers to join us and take advantage of the new model​.”

Welsh farmers, including Welshpool-based Richard and Sarah Wilde, who have supplied Tesco with lamb for over five years, welcomed the move.

“This cost-of-production model is great news for our farm as it gives us a guaranteed price for our lamb for the next 12 months​,” said the farmers.

“This means we – and other lamb farmers in Wales and across the UK – can invest and plan for the future with confidence, and ensure we continue to provide Tesco customers with the very best British lamb​.”

The news comes just weeks after the retailer announced new contracts for its Aberdeen Angus beef​ farmers and the relaunch of the Tesco Sustainable Farming Group for Beef.

Tesco operates 10 Sustainable Farming Groups, covering areas including lamb, beef and poultry.