January 22, 2025

 

Tesco relaunches company's Sustainable Pig Group

 

 

Tesco has relaunched and expanded its Tesco Sustainable Pig Group (TSPG), with a new cost of production and market price-pricing mechanism to deliver long-term stability for producers.

 

The group, developed in partnership with Tesco's long-term supplier, Cranswick, will cover all production methods used in the United Kingdom and include farms of varying sizes.

 

Tesco estimates the group could be worth at least £670 million (US$826.4 million) over the initial three years of the scheme. It will initially produce all Tesco's Finest fresh pork, with the ambition of tripling in size over the next three years to produce all Tesco's core fresh pork and sausages, making it one of the largest farming producer groups in the UK.

 

Under the new contract arrangements, farmers will receive a combination of cost of production and market price-incentives, giving producers greater stability in pricing, and help to support longer term investment.

 

The group will play a significant role in developing Tesco's approach to sustainable production, providing a forum for suppliers, farmers, and Tesco representatives to collaborate and improve welfare, innovation, quality standards, and collaboration.

 

Among the incentivised improvements in animal welfare will be a drive to increase the number of farms with ‘enhanced farrowing' and decreasing stocking densities on farms across the TSPG.

 

Tesco said the reintroduction of the group follows 18 months of continued support for the industry, with the supermarket increasing the tonnage of British pork used in its sausages, bacon, pork, and gammon by 20% during that period.

 

Ashwin Prasad, Tesco's chief commercial officer, said: "Our dedicated British farmers have faced some challenging times recently, and we've been doing everything we can to support them. Our sustainable farming groups play a vital role, providing forums for collaboration and innovation, as well as encouraging improvements in product quality, animal welfare, and environmental measures.

 

"With this in mind, I'm delighted to announce a step up in our support for our British pig farmers. Our new cost of production mechanism and bonus incentives will provide real benefits to farmers who will be able to invest in key welfare, sustainability, and efficiency improvements."

- Pig World