Tesco, in collaboration with its long-term supplier Cranswick, has announced the relaunch and expansion of the Tesco Sustainable Pig Group (TSPG) with a new cost of production and market price + pricing mechanism. This initiative aims to provide long-term stability for producers involved in all production methods used in the UK, including farms of varying sizes.
The group is expected to generate a minimum of £670 million over the initial three years of the program. Initially focusing on producing Tesco’s Finest fresh pork, the ambition is to triple in size over the next three years to cover all of Tesco’s core fresh pork and sausages, making it one of the largest farming producer groups in the UK.
Through the new contract arrangements, farmers will receive a combination of cost of production and market price+ incentives, offering them greater pricing stability and support for long-term investments. The TSPG will also play a crucial role in Tesco’s sustainable production approach by facilitating collaboration among suppliers, farmers, and Tesco representatives to enhance welfare, innovation, quality standards, and collaboration.
Incentivized improvements in animal welfare within the group will include initiatives to increase the number of farms with ‘enhanced farrowing’ and reduce stocking densities. Tesco already operates Sustainable Farming Groups across various supply chains such as milk, cheese, beef, lamb, and potatoes, providing fair and transparent pricing structures and support to reduce emissions through carbon footprinting.
Furthermore, Tesco offers payment models and bonuses through contracts in the Dairy, Beef, and Lamb sectors, with premiums aimed at incentivizing sustainability investments. The reintroduction of the TSPG follows 18 months of continuous support for the industry, with Tesco increasing the utilization of British pork in its products by 20% during that period.
Ashwin Prasad, Chief Commercial Officer at Tesco, emphasized the importance of supporting British farmers and highlighted the benefits of sustainable farming groups in fostering collaboration, innovation, and improvements in product quality, animal welfare, and environmental measures. Adam Couch, CEO of Cranswick, expressed enthusiasm for collaborating with Tesco to ensure the long-term viability of the British pig farming sector.
The NPA chief executive, Lizzie Wilson, commended Tesco’s commitment to supporting British pig farming and emphasized the importance of long-term retail commitments to ensure the sustainability and reinvestment of pig businesses for the future.
The relaunch of the TSPG coincides with the publication of a sustainability report by Tesco and Harper Adams University’s School of Sustainable Food and Farming (SSFF), which offers recommendations to enhance sustainability across agriculture and the wider food industry.
In conclusion, Tesco’s relaunch and expansion of the Tesco Sustainable Pig Group demonstrate the retailer’s commitment to supporting British pig farmers and promoting sustainability within the agricultural sector. By providing a platform for collaboration, innovation, and improved welfare practices, this initiative is poised to benefit producers, consumers, and the environment alike.