UK retail giant Tesco is to up the price it pays pig and poultry farmers for their produce.
A spokesperson for Tesco said today (29 October) that it has a “responsibility” to help British pork and poultry farmers who are facing “tough times” with rising commodity costs.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“It’s what our customers want and expect from Tesco. And we’ll continue to do all we can to keep the cost of other products low and keep overall basket costs down.”
The spokesperson would not confirm what the price increases are, adding the information was “commercially sensitive”.
“We are increasing what we pay for pork and poultry products, but we’re not confirming what the increases will be.”
The move comes as UK farmers begin to feel the pressure of higher feed costs as a result of poor harvests in the UK and in other countries, in particular the US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn July, the UK poultry industry sent a letter to the country’s retailers in a bid to highlight the increasing margin pressure the sector is coming under.
A drought in the US this year meant corn and soybean harvests were predicted to be significantly lower than originally forecast, while Russia cut its forecast wheat harvest in the summer due to poor weather conditions. With rising global feed prices, this has placed the margins of protein groups under increasing pressure.
