Lidl Investing £500m In British Pork Sector
Lidl has announced a £500 million investment package into the British pork sector, including a new pricing model for suppliers and farmers.
As part of the move, the discounter has moved pork producers to an open-book model – the ‘Lidl Pork Standard’ – that includes cost of production with guaranteed farmer margins.
It’s also launched a pork producer group, which will see it invest in farm initiatives to decrease emissions and fund research into welfare enhancements.
The National Pig Association (NPA) has welcomed the introduction of these pork contracts and the supermarket’s “continued commitment to a sustainable domestic supply of British pork”.
The sector has faced numerous issues, including rising costs, a Chinese import ban on EU pork, and butcher shortages, which led to a significant backlog of healthy pigs and financial worries for producers.
Lidl’s move includes the new ‘Lidl Pork Standard’, which sees the discounter moving farmers to an open-book producer costing model that includes the on-farm cost of production, will guarantee minimum producer volumes and include a fixed margin for farmers.
The retailer said this change was developed in collaboration with producers through its newly created ‘Lidl Pork Producer Group’.
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