Farmers and local sourcing
Dairy cows, Tesco cheddar producer, Somerset
Introduction
2006/07 was a challenging year for many UK farmers, with continued increases in the costs of feed and energy and the impact of changes to subsidy payments. Farmers were also striving to satisfy growing consumer demands on value, health, and production methods. However, some sectors saw a recovery in their incomes, with increases in the value of produce, cereals and cattle1. Dairy farmers continued to struggle, with farm incomes and milk production both falling2.
Our customers tell us that they increasingly want to know where the food they buy has come from, what it contains, and whether it has been grown locally. Some also want to know whether it has been produced using sustainable and ethical farming methods and whether the farmer has received a fair deal. NGOs and politicians have also been active on these issues over the last year, helping to focus attention on farming and local sourcing.
Tesco, food suppliers, food processors and farmers all share these challenges. We are responding by developing even closer relationships with our supply chain, particularly with local and regional suppliers. We believe that our own strong performance is good for farmers and suppliers, and that our relationships are based on trust and fairness.
"I have been impressed with the commitment and enthusiasm shown by Tesco to local sourcing. We have been calling for an easier route to market for smaller producers. The fact that we will now be able to make direct contact with the UK’s number one retailer within the South-West region is an important step forward in our quest to close the supply chain gap between producer and consumer."
John Sheaves,
Taste of the West
Source:
- DEFRA Farm Income Survey January 2007
- DEFRA Farm Income Survey January 2007