Speaking during the horticulture and potatoes breakout session at NFU14, Richard Marris, Commercial Director of Fresh Foods, said that the supermarket would mirror the models they have launched in the dairy and meat sector.
He said: “We are now looking at building longer-term relationships all the way down the supply chain, bringing greater certainty and security.”
The announcement comes after continued lobbying by the NFU Horticulture and Potatoes team behind its Catalyst for Change policy document. This initiative was launched in July 2012 in the wake of a significant ten-year fall in self-sufficiency for British fruit and vegetables.
It called for retailers, packers and processors to find better ways of doing business with their grower suppliers.
Mr Marris was also keen to rebut fears that the latest cross-category price reductions at Tesco would mean growers might lose out. He said: “We shouldn’t get confused between cost price and retail price. Retail price at the end is the domain of the retailer. That will not impact the cost prices we are paying.”
The NFU is committed to working with Tesco to achieve their plans to extend direct relationships and contracts work for fresh produce.
Sarah Dawson, chair of the NFU Board for Horticulture, said: “This is a fantastic announcement. We would like very much to support Tesco in its journey in the fresh produce sector.”