Asda Wal-Mart cost plus for pigs
ASDA Wal-Mart is planning to spread its cost-plus contracts to pigs, offering producers guaranteed prices to cut market volatility.
The group currently buys potatoes in this way. "The net effect has been better continuity of supply and quality," Asda Wal-Mart chief executive, Allan Leighton, told a recent Sentry conference. "The cost plus agreement with pigs is very different, and we are about six months behind where we need to be." He could not put a value on the contracts, but he expected about 65-70% of Asdas pork and bacon to be British.
He said he had been told that was realistic maximum. While that meant Dutch supplies would continue to be sold, he added that Asda insisted it was produced under the same restrictions as UK pigmeat.
About 70 farmers markets had been held outside Asda Walmart stores in the past five months, he said, generating some £750,000 of sales for producers. "And we sold more fresh produce too. We are really going to get after this." *