May 18, 2022
Tesco UK secures additional US$8.1 million of support for country's swine sector
Tesco, the UK's biggest supermarket group, has secured an additional GBP 6.6 million (~US$8.1 million; GBP 1 = US$1.25) of support for country's swine sector, which has been affected by soaring input costs, Reuters reported.
The UK's National Pig Association (NPA) called out Tesco for not doing more for the UK's swine industry.
Swine farmers in the UK are facing major losses as rising livestock feed prices caused by Russia's invasion into Ukraine has pushed costs of production up.
Tesco said its suppliers, including London-listed Cranswick, will send additional money to farmers under a "accelerated and expanded payment plan," raising payments by GBP 6.6 million (~US$8.1 million) until August and bringing Tesco's farmer support to a total of GBP 10 million (~US$12.4 million) since March this year.
Tesco said they will work with its suppliers to guarantee that the investment is passed on to farmers as soon as possible.
Since the turn of the year, the grocery chain has been aiding the sector by buying extra swine to help clear the backlog of animals on UK farms.
Tesco has purchased an additional 32,000 swine since January and aims to buy another 22,000 in the coming months.
Tesco has pledged to reassess pricing more frequently in the long run, giving farmers more flexibility when market prices fluctuate.