Lidl has announced a £1.5bn investment in its British beef supply chain over the next five years, as part of a major push to reduce carbon emissions from its producers.
Working alongside its red meat supplier Dunbia, the discounter has also created a new Sustainable Beef Group as part of the investment – which will work to adopt regenerative farming techniques on supplier farms and pay a premium to farmers for reducing emissions.
Part of Lidl’s ongoing commitment to source 100% British beef, the move is designed to reduce scope 3 emissions intensity by 28% per tonne of finished product by 2030.
The producer group will be rewarded for achieving a reduction in carbon intensity, alongside adopting regenerative farming techniques to improve grazing management, biodiversity, and soil and water quality parameters that are unique to each farm, Lidl said.
The discounter will also work with these farmers to improve herd performance, with all initiatives “naturally helping to improve farm profitability”, it added.
In what the retailer described as “a significant step forward for the industry”, hundreds of farms across the UK have been carbon footprinted to gather data.
In partnership with the independent agricultural and sustainability consultancy, Promar, each farm supplying beef to Lidl will now be offered “tailored advice to reduce their carbon emissions and support the sustainable growth of their businesses over time”.
The move built on the success of Lidl’s exclusive Welsh and Grass Fed beef producer groups, Lidl said.
In both instances, the discounter pays a premium to producers to join the group – with the Grass Fed group ensures cattle spend a minimum of 180 days grazing outdoors each year, with a diet consisting of at least 70% grass.
It follows the announcement of a £500m investment by Lidl in its pork supply chain in April, which included the creation of a pork producer group and a new, “more sustainable pricing model”.
“As one of the largest buyers of British beef, we recognise our responsibility to support farmers adopt sustainable practices,” said Lidl GB chief commercial officer Richard Bourns.
“This market-leading programme underpins our long-term commitment to buying 100% British, whilst investing significantly in sustainable practices that exceed industry standards. It ensures our customers can continue to enjoy the best in high-quality, sustainably sourced British beef at the lowest possible prices.”
Dunbia group sustainability director Gill Higgins added the investment would “support British beef farmers in adopting more sustainable farming methods, while ensuring a consistent supply of high-quality beef for Lidl and its customers”.
“This is a great example of how strategic partnerships and supply chain investment can support progress in the agri-food industry,” she said.
Lidl’s move comes amid growing scrutiny over the environmental impact of meat and dairy supply chains. A report published by campaign group the Changing Markets Foundation last week accused the two sectors of downplaying their impact on climate breakdown.
Meanwhile, findings from the Energy & Climate Intelligence Unit revealed progress on emissions reduction for farming and land use in the UK was “significantly off target” with progress lagging behind to such an extent farming could become the UK’s biggest emitter by the mid-2030s.
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