Tesco has added to its Sustainable Farming Groups in milk, cheese, beef, lamb and potatoes by relaunching and enlarging its Sustainable Pig Group.
The move, developed in partnership with Tesco’s long-term supplier Cranswick, will cover all production methods used in the UK and include farms of varying sizes. Tesco estimates the group could be worth at least £670m over the initial three years of the scheme.
The group will initially produce all Tesco’s Finest fresh pork, with the ambition of tripling in size over the next three years to produce all Tesco’s core fresh pork and sausages. This would make it one of the largest farming producer groups in the UK.
Tesco said member farmers would receive a combination of cost of production and market price-plus incentives, giving producers greater stability in pricing, and helping to support longer-term investment.
The reintroduction of the group by Tesco followed 18 months of “continued support for the industry”, Tesco added. The supermarket has increased the tonnage of British pork used in its sausages, bacon, pork and gammon by 20% during that period.
The TSPG would play a significant role in developing Tesco’s approach to sustainable production, it said, providing a forum for suppliers, farmers and Tesco colleagues to come together and improve welfare, innovation, quality standards and collaboration.
Among the incentivised improvements in animal welfare will be a drive to increase the number of farms with enhanced farrowing, and decreasing stocking densities on farms across the TSPG.
“Our sustainable farming groups play a vital role, providing forums for collaboration and innovation, as well as encouraging improvements in product quality, animal welfare and environmental measures,” said Tesco chief commercial officer Ashwin Prasad.
“With this in mind, I’m delighted to announce a step up in our support for our British pig farmers. Our new cost of production mechanism and bonus incentives will provide real benefits to farmers who will be able to invest in key welfare, sustainability and efficiency improvements.”
The relaunch comes after Tesco and Harper Adams University’s School of Sustainable Food & Farming published a report on the future sustainability of the agriculture sector in the UK. The report, which has been informed by Tesco’s farmers, sets out a series of recommendations to aid sustainability across agriculture and the wider food industry.
Cranswick CEO Adam Couch welcomed Tesco’s “continued commitment to British pig farming and we are delighted to be collaborating with them to ensure the long-term viability of the sector”.
National Pig Association CEO Lizzie Wilson said the industry body was “supportive” of Tesco’s new contract announcement “as it demonstrates not only the desire to secure a considerable British supply of pork, but that it requires a long-term retail commitment to ensure pig businesses are sustainable and able to reinvest for the future”.
She added: “We particularly note the commitment to supporting indoor producers who want to invest in improving welfare and the sustainability of their farms and hope other retailers follow suit.”
The announcement comes as new contract regulations for the pig sector – similar to those already introduced in the dairy industry – are due to be unveiled by the government this spring, as confirmed by Defra secretary Steve Reed last week.
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