Discounter Aldi has revealed it will invest £5 billion in British farming as part of its plan to strengthen the food supply chain.
The investment will be made through a series of long-term agreements with UK suppliers. Aldi said the deals would give farmers and producers a “greater certainty” to invest in their businesses.
The agreements typically last two years, and will cover meat, eggs and dairy, as well as fresh fruit and veg. The discounter said it will aim to source 50% of its domestic produce through long-term agreements by the end of 2027.
Julie Ashfield, chief commercial officer at Aldi UK, said: “British suppliers are at the heart of our business.
“These long-term agreements give farmers and producers the confidence to plan ahead, invest in their operations and build resilient supply chains.”
Discounter opens £500m distribution centre
The news comes as Aldi opens its 1.3 million sq ft distribution centre at Bardon in Leicestershire, which the retailer said was the UK’s largest supermarket warehouse.
The retailer has invested more than £500 million in the site, which will serve 350 stores and will employ around 1,000 people.
Giles Hurley, chief executive officer of Aldi UK and Ireland, commented: “The state-of-the-art technology in Bardon will significantly increase the efficiency of our warehouse network, meaning we can continue to deliver the best possible prices for our customers, every single day.
“Our ambition is to make quality groceries affordable and accessible to all, and that can only happen when everybody in Britain has an Aldi store on their doorstep.
“That’s why we’re committing significant investment in opening new stores and distribution centres up and down the country, taking us closer to our goal of having 1,500 stores across the UK.”
