Tesco's £25m vow for farmers backed
Shropshire farming leaders today welcomed the announcement by Tesco of a £25 million deal promising beef and pork farmers better prices and longer contracts.
The supermarket, which has previously attracted criticism from farming groups for its prices and short-term contracts, said the move would help to take the pressure off British suppliers faced with rising feed prices.
The arrangement, which has been hailed as 'excellent' by Environment Secretary and North Shropshire MP Owen Paterson, will create two groups run by committees of farmers.
It is designed to guarantee an above-market price for beef suppliers and pork prices linked to the cost of feed.
Mr Paterson said: "This is an excellent scheme which will give more certainty to beef and pork producers."
He said it could help British farmers take advantage of the 'huge opportunities to supply markets at home and all over the world'.
John Mercer, NFU regional director, said: "This announcement from Tesco is welcome and although we still await further details we hope county farmers will benefit and be able to take advantage of the new contracts on offer."
Tesco said the deal, which the firm described as an 'industry first', will give direct contracts lasting up to 36 months,
The chain will work with about 140 pig farmers while about 1,000 beef farmers will supply Tesco with all its Finest brand beef.
Asked if the deal would mean higher prices for consumers, a Tesco spokeswoman said: "There will definitely be no costs passed on to customers from the groups themselves."
