Tesco offers two-year contracts to beef farmers

Tesco is offering direct two-year contracts to 100 beef farmers.

The contracts will be offered in conjunction with the retailer’s main processing partner, St Merryn Foods, in Wales. Producers will be paid an agreed base price, with a premium for carcass grades and environmental work and will join Tesco’s sustainable farming groups. The retailer says it will look to extend the contracts to more beef producers over the coming year.

“We want to build stronger, shorter and more direct relationships with the British farmers that supply us, and these contracts will give farmers reassurance and confidence to invest for the future,” says Richard Marris, commercial director of Fresh Foods at Tesco.

Tesco has also signed a five-year partnership arrangement with red meat packing company Hilton Food Group, which has facilities in the UK, Denmark, the Netherlands, Sweden, Poland and soon also in Australia.

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