Tesco has announced that producers in its Sustainable Beef Group (TSBG) have signed new three-year contracts, which will aim to reward farmers for meeting sustainability standards.
Farmers will earn an additional amount per kg by meeting a new set of standards focused on quality, breeding, animal health and welfare and sustainability.
Tesco said it will also provide the TSBG with a bonus incentive for new levels of traceability through whole-life assured cattle, which it said would provide “greater transparency” through the supply chain. This will reportedly be worth up to £3 million of additional investment across the first three years.
TSBG farmers will also be financially supported to take part in Tesco’s environmental baselining work with Soil Association Exchange, which aims to help beef and lamb farmers to capture soil, water and nature data at scale for the first time. Through this baselining work, farmers receive tailored advice to help strengthen farm resilience, improve efficiency and support progress towards a more sustainable food system.
A further 600 farmers who were previously part of the TSBG will move to the new three-year Aberdeen Angus contract, and will be able to earn an additional amount per kg by meeting a simplified criteria focusing on age, weight and genetics to drive progress. The new model is intended to support farmers in making long-term investments, said Tesco.
In total, Tesco’s investment into the TSBG and Aberdeen Angus contract is set to be worth over £92 million annually. The retailer will deliver the changes to the TSBG alongside its long-term supply partners Foyle Food Group and Kepak, with a “more closely aligned” group of around 200 farmers supplying Tesco’s Finest Steakhouse beef range.
This comes as the retailer announced an expansion of its Sustainable Pig Group in May.
Natalie Smith, head of sustainable agriculture and fisheries at Tesco, stated: “These changes reflect our ambition to work even more closely with our British farmers, offering long-term security, which allows them to deliver high standards of quality, animal welfare and sustainability across our beef supply chain.
“By creating a more closely aligned Tesco Sustainable Beef Group for our Finest+ range, while also introducing a simplified Aberdeen Angus contract for other producers, we are giving farmers clearer opportunities to be rewarded for the standards and practices that matter most to our customers and our business.”
“It is a strong vote of confidence in British beef production and in the commitment of farmers across the Tesco Sustainable Beef Group.”
Matt Wyndham Lewis, Kepak
Matt Wyndham Lewis, head of agriculture at Kepak, commented: “Kepak and our farmers are proud to have partnered with Tesco through the Tesco Sustainable Beef Group for the past ten years.
“During that time, TSBG farmers have consistently delivered high-quality British Aberdeen Angus cattle for the Tesco premium ranges.
“This year, Tesco extended producer contracts from one year to three years, a significant step that has been warmly welcomed by farmers and processors alike. Longer-term agreements provide greater certainty, enabling farmers to plan ahead, invest in their businesses and continue producing the high quality beef customers expect.
“It is a strong vote of confidence in British beef production and in the commitment of farmers across the Tesco Sustainable Beef Group.”
Wayne Acheson, procurement and agriculture director at Foyle Food Group, said: “We are delighted that Tesco has continued its commitment to supporting its Angus supply chain through the TSBG. This new, focused group will help drive greater efficiency and improve on-farm productivity through advances in genetics, nutrition, and animal health.
“This contract will provide much-needed stability for many farming businesses across the UK. The Tesco Angus Scheme remains one of the strongest models of supply chain integration in the beef industry, and we are proud to be part of its continued success.”
