Morrisons has launched a new trial designed to support farmers that will see it underwrite 100% of the costs associated with growing crops.
The £2m trial will help British farmers mitigate the cost and weather pressures associated with farming such as field rent and fertiliser costs. By doing so, it gives farms greater security, with Morrisons shouldering all the risk.
“Any adverse economic situation for the farmer will be covered 100% by us in addition to the contract price [paid to them],” Morrisons said.
Crops are currently being grown on three potato farms and one carrot farm, with the first produce from these farms due to hit shelves before the end of the year and into 2024.
If the trial is a success, Morrisons plans to roll out this scheme to more farms later next year.
“As British farming’s biggest direct customer, we understand the impact that higher costs are continuing to have on farmers,” said Gareth Cosford, senior buying manager for root vegetables at Morrisons. “Therefore, our trial scheme allows us to take all the risk associated with growing the crop away from our farmers and continue to grow the best quality British produce that our customers know and love.”
This latest support comes in addition to Morrisons’ Naturally Wonky range, which helps farmers by buying off-specification fruit & vegetables. The range includes 24 wonky varieties and 27,000 tonnes of fresh produce was sold this way in 2022.
Naish Farms supplies potatoes for Morrisons and has been involved in the Naturally Wonky range.
“In farming there are ups and downs throughout the season,” said Andrew Nash, director at Naish Farms.
“For us we are seeing greater weather challenges which may impact our crops and by being part of this new Morrisons trial, they’re underwriting our growing costs to cushion us from the associated risks and provide supply security so that we can focus on growing the very best potatoes for their customers.”
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