Tesco to underwrite Vion beef and lamb supply
Retail giant Tesco has announced plans to underwrite the cost price of any beef and lamb supplied to its stores from Vion plants.
All Tesco beef and lamb processed through Vion’s St Merryn Foods and McIntosh Donald plants will have the cost price underwritten for six months or until new owners have been found.
In November Vion announced plans to exit the UK and put its 38 meat processing sites up for sale. Last week, a management buyout was confirmed for the pork business. However, talks are ongoing over the sale of the red meat and poultry sites.
“Tesco is aware that rumours are causing concern to the beef and lamb farmers who supply us through our main processors St Merryn Foods and McIntosh Donald,” said Tesco category director for meat, fish, poultry and eggs, Derek Lawlor.
“To ease that concern, Tesco is prepared to offer an assurance that it will underwrite the cost price of any beef and lamb supplied to Tesco through these operations until they are sold and the new owners are installed.”
Vion confirms pork management buyout