Tesco is to boost local food sourcing by opening regional buying offices in Scotland, Wales and Northern Ireland, and has upped its spend on UK organics. The multiple said the Welsh buying office was almost ready to begin running under Welsh marketing manager Meiner Phillips. However, Tesco predicted recruitment for the Northern Irish and Scottish divisions would be completed later this year. It added that there were no current plans to set up regional buying centres in other regions. The offices will house two full-time staff with a mission to source local products for Tesco stores. Tesco commercial director Colin Smith said: "By placing buyers and marketing teams in the regions we can build a more accurate picture of local markets and develop closer relationships with suppliers." The move coincides with the publication of the Policy Commission's Future of Farming and Food report, which urges an increase in local sourcing. Smith added: "This is part of our continuing support for UK farmers and a response to customers who want to support their region by buying from local producers." Tesco currently stocks more than 7,000 locally sourced products. Tesco also promised more price cuts on organics when it announced additional contracts with UK suppliers worth £12m, part of an overall target of £1bn organic turnover by 2005. Smith said: "When we announced our £1bn target for organics at the end of last year we said there was a huge opportunity for British farmers to produce more, and these figures show that they are certainly rising to the challenge." A spokesman said impending price reductions would be achieved through growing sales and volumes, not by cutting payments to producers. He said: "Affordability is an issue on organics. We have already cut prices on 50 of our most popular lines. We plan to make further cuts across the range but not to the same level as conventional foods. Our research shows customers recognise there will always be a premium on organics." {{NEWS }}

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