Co-op has launched a new, £820,000 fund that will see farmers directly rewarded for their efforts in reducing carbon emissions and promoting nature across the beef, lamb and dairy sectors.
The initiative will be delivered via two new sustainability projects, with participating farmers able to access sustainability payments above the price they are already paid for their products.
The first project will focus on the dairy sector and will see Co-op partnering with Soil Association Exchange to support the 140 farmers in its Dairy Farming Group in reducing their carbon footprint and begining to baseline key nature indicators like biodiversity and soil health.
Sustainability payments will be rewarded to the farms as part of the project, whilst farmers will be able to choose an action plan that works for them, with support from Soil Association Exchange advisors, which could include cutting fertiliser use, increasing fuel efficiency, and investing in solar energy.
The project is in addition to a an initiative launched by Soil Association Exchange earlier this month, supported by Co-op, Tesco and Lidl, for similar incentives for arable producers.
The second project, Co-op’s Beef Sustainability Scheme, will reward farmers for adopting on-farm sustainable practices and will be open to members of Co-op’s Farming Group.
The scheme, which launches after a successful two-year pilot, will be extended to 15% of the retailer’s beef supply chain this year and also includes lamb farmers for the first time, Co-op said.
More than 100,000 tonnes of carbon are expected to be saved under the programme over a five-year period as the retailer grows the percentage of its beef and lamb supply covered by the scheme. Farmers will be reducing their impact through a range of actions, from breeding more efficient animals through to improving forage quality.
’Long-term investment in UK agriculture’
Co-op said the two projects and the premiums paid to qualifying producers built on its “long-term investment in UK agriculture”.
It was the first national UK grocer to have 100% of all its fresh and frozen chicken, pork, beef and lamb sourced from UK farms, including when used as an ingredient – a commitment which began in 2014 and continues today. In addition, the retailer only sells British free-range eggs, milk and cream.
“We know British farmers are facing many challenges and have seen first-hand the fear, anxiety and anger they are currently feeling,” said Co-op MD Matt Hood.
“Backing UK agriculture is more important than ever. At Co-op, this means investing hundreds of millions every year to be one of the few UK retailers to be totally 100% British across meat, poultry and dairy throughout our own supply chain and committing support for farmers addressing the growing need for sustainability and climate resilience,” he added.
“We know our members and customers feel the same and they value being able to buy the high quality, British-sourced products they love,” Hood said.
“In these uncertain times for our industry, we need to work together across the supply chain,” said Tom Bramall, dairy farmer and chair of The Co-op Dairy Group.
“Farmers like me want to play our part when it comes to sustainability, but we need support. It’s fantastic to see Co-op directly rewarding farmers and recognise the positive role we play in addressing the issues around climate change.”
It comes as Tesco on Friday announced the launch of a revamped and enlarged Sustainable Pig Group offering cost of production contracts and additional sustainability-led incentives for producers.
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