McDonald’s is to increase the price it pays its beef and pork producers to reflect the rising cost of production.
From Monday, 15 October, McDonald’s will pay 5% more for the beef and pork it buys from its suppliers and this will be passed directly back to the 6300 British farmers that supply it.
McDonald’s uses 100% British and Irish beef and 100% British pork in its meat patties. In 2006 McDonald’s boneless belly pork and bacon was sourced from 1.2m pigs, all from British farms.
The move means an injection of more than £455,000 into British agriculture by the end of the year.
The price rise is a reflection of the difficulties created by the rising price of key inputs such as cereals, but also of the difficulties imposed by the summer outbreaks of foot and mouth outbreak and bluetongue diseases.
McDonald’s is also introducing two further measures to support the industry in Great Britain following consultation with key suppliers.
A 30% increase in the amount of British beef purchased – around 100 tonnes extra per week – and an increase in the number of permitted animal movements from three to four, bringing beef into the company’s supply chain that would previously have had to be exported.
Matthew Howe, senior vice president at McDonald’s, said: “Our business is built on the highest quality British farming and we have a responsibility to act on our loyalty and commitment to the industry.
“British farming currently faces arguably its most challenging period for many years and there is little doubt that, at current prices, beef and pig farmers cannot make a return on their animals.
“We hope this combination of measures will help relieve some immediate pressures and provide stability going forward.”