May 3, 2024
Lidl Great Britain to support UK pork industry with US$627 million investment
Discount retailer Lidl Great Britain has announced a significant £500 million (US$627 million) investment to bolster the UK pork industry.
The move builds on Lidl's existing commitment to sourcing all its fresh pork from UK producers. The investment comes at a crucial time for the industry, which has faced recent challenges such as rising production costs, a ban on EU pork imports by China and a shortage of butchers. These factors have resulted in a backlog of healthy pigs and financial strain on producers.
Lidl's plan tackles these issues through a three-pronged approach focused on sustainability, animal welfare and producer support. It is introducing the new Lidl Pork Standard that utilises an open-book costing model. This transparent system allows producers to share their on-farm costs with Lidl, ensuring they receive guaranteed minimum purchase volumes and a fixed profit margin.
The collaborative approach fosters a more sustainable pricing model for the entire pork supply chain.
Lidl is also funding research projects that mimic natural pig behaviours such as rooting and chewing to further enhance animal welfare. Additionally, it utilises innovative 3D camera technology to monitor and improve enrichment interactions for pigs.
Lidl said it recognises the environmental impact of pork production and is investing in assessing and reducing the carbon footprint of all farms within its pork producer group.
Furthermore, the company is allocating more than £250,000 (US$313,452) to improve river health and water quality in at-risk areas. Lidl added that it is committed to achieving deforestation-free soy sourcing by the end of 2025.
In 2022, the company increased prices paid to farmers on three separate occasions to help them weather volatile market conditions.
The £500 million investment is part of Lidl's broader £15 billion (US$18.8 million) commitment to the UK food sector between 2020 and 2025.
- Retail Insight Network
