Vion’s beef and lamb output will be underwritten by Tesco
Vion’s beef and lamb output will be underwritten by Tesco
Reports are emerging that Tesco has agreed to underwrite the cost price of any beef and lamb supplied to its stores from the beleaguered Vion plants.
This will impact on the product processed through Vion’s plants at St Merryn Foods and McIntosh Donald. It understood that the arrangement will be for up to six months or until such time as a new owner is found for the businesses.
Tesco’s category director, Derek Lawlor is reported as saying: “Tesco is aware that rumours are causing concern to the beef and lamb farmers who supply us through our main processors St Merryn Foods and McIntosh Donald.
“To ease that conern, Tesco is prepared to offer an assurance that it will underwrite the cost price of any beef and lamb supplied to Tesco through these operations until they are sold and the new owners installed.”
