Lidl is on target to exceed a five-year commitment to invest £15bn in its British food and farming supply chain by the end of this year, by £6bn.
The discounter said a series of additional financial commitments in 2024 would help it reach a total £21bn investment in British production by the end of its financial year – some 40% higher than its initial target.
In the past financial year alone, Lidl has invested £1bn in free-range egg production via new financial incentives and a cost-of-production contract model for producers in October.
Other investments included £1.5bn in July for the beef sector for the next five years – as part of a wider commitment to sourcing 100% British beef.
Alongside this, the discounter announced a “market-leading” sustainability programme in partnership with its British beef suppliers, offering financial rewards to members of its Sustainable Beef Group for adopting sustainable practices.
Lidl additionally pointed to a £500m injection in the pork sector in April, alongside the creation of a pork producer group to aid industry collaboration and initiatives to decrease emissions and fund research into welfare enhancements.
The retailer also ploughed an extra £70m into its British root veg supply chain in January – offering long-term contracts against the background of challenging weather conditions.
Lidl said the investments “underscored” its “ongoing support for British agriculture and food production”. Its “extensive own-brand range” – representing approximately 90% of its product offering, compared to an average of 56% across the sector [Kantar 52 w/e 29 September] – meant it had direct relationships with more than 650 suppliers from across the country, it added.
“As we celebrate 30 years of Lidl in Great Britain, it’s a fitting time to reflect on how far we’ve come,” said chief commercial officer Richard Bourns.
“One of the things we’re most proud of are the strong relationships we’ve built with British suppliers, who have grown with us over the years. Now more than ever, we remain committed to supporting British farmers, ensuring we’re a dependable partner to those who put quality, home-grown food on Lidl shelves across the country.”
By continuing to invest in British agriculture, the retailer was “helping to ensure our suppliers can thrive in the future, providing the British-sourced products our customers love all year round”, Bourns added.
It comes as Lidl is preparing to launch its first Grassroots Farming Conference to further strengthen ties with its British farmers.
The inaugural conference will take place on 19-20 February at Harper Adams Agricultural University, and will cover topics including agricultural policy, mental health, and more.
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