Lidl has become only the second grocer to sign up to a 12-month-old scheme to back British farmers by promising to buy more of their produce and offer long-term supply deals.
The German discounter joins its close rival Aldi, which almost a year ago became the first retailer to sign up to the National Farmers Union-backed “fruit and veg pledge”, which aims to boost the profitability of British farmers and suppliers.
The code includes a commitment to paying on time and in full, offering more certainty on price and production requirements and aiming to reduce waste by buying the whole crop and adopting realistic product specifications.
The farmers’ union has called on all retailers to sign up publicly to the pledge, which took three years to draw up after the publication of its Catalyst for Change report.
The union has previously said it has been involved in negotiations with other major UK retailers including Tesco, but only the relatively small-scale discounters that together account for about 10% of the UK market have signed up.
Catalyst for Change found millions of pounds had been stripped out of the fresh produce sector through poor supply chain practices and a short-term approach to relationships with growers and intermediaries, damaging farmers’ ability to produce fruit and vegetables.
Although there is a code of conduct covering major grocers’ relationships with their suppliers, many farmers are not covered because they go through wholesalers rather than dealing with supermarkets directly.
Ali Capper, NFU horticulture and potatoes board chair, said: “We are delighted that Lidl has publicly committed to our pledge, highlighting its commitment to long-term supply relationships, equitable distribution of reward along the supply chain, and fair and respectful trading relationships.
“Our goal is to generate integrity, honesty and openness across the market and that can only come from the key asks within our pledge – which include price certainty, transparent working and strong, long-term relationships that are fair for everyone involved.”
Ryan McDonnell, commercial director for Lidl UK, said: “We’re very keen to ensure that our sourcing process supports the growth and development of UK growers, which is vital in encouraging more and more people, particularly our shoppers, to regularly eat more fruit and veg.”
