Tesco has announced details of its enhanced, industry-leading Tesco Sustainable Beef Group (TSBG), introducing a more closely aligned group of around 200 farmers supplying its award-winning Finest Steakhouse beef range.
Farmers in the enhanced TSBG will benefit from a new three-year contract, earning an additional amount per kg by meeting a new set of standards focused on quality, breeding, animal health and welfare, and sustainability. The incentives reflect Tesco’s ambition to work in partnership with farmers to support best practice and deliver improvements, while also building resilience across the supply chain.
Tesco will also provide the TSBG with a bonus incentive for new levels of traceability through whole-life assured cattle, providing greater transparency through the supply chain. This is set to be worth up to £3m of additional investment across the first three years.
TSBG farmers will also be financially supported to take part in Tesco’s environmental baselining work with Soil Association Exchange, which is helping beef and lamb farmers to capture soil, water and nature data at scale for the first time. Through this baselining work, farmers receive tailored advice to help strengthen farm resilience, improve efficiency and support progress towards a more sustainable food system.
A further 600 farmers who were previously part of the TSBG will move to a new and simplified three-year Aberdeen Angus contract, creating a clear route into a recognised quality beef programme while maintaining strong links with Tesco’s supply base. These producers will continue to benefit from the same long-term security and financial rewards as the previous TSBG contract. They will also have the opportunity to earn an additional amount per kg by meeting a simplified criteria focusing on age, weight and genetics to drive progress. The new model is intended to support farmers in making long-term investments while helping Tesco continue to deliver high-quality British beef for customers.
In total, Tesco’s investment into the TSBG and Aberdeen Angus contract is set to be worth over £92m annually.
These changes reflect our ambition to work even more closely with our British farmers, offering long-term security, which allows them to deliver high standards of quality, animal welfare and sustainability across our beef supply chain.
Natalie Smith, Head of Sustainable Agriculture and Fisheries at Tesco: ’’By creating a more closely aligned Tesco Sustainable Beef Group for our Finest+ range, while also introducing a simplified Aberdeen Angus contract for other producers, we are giving farmers clearer opportunities to be rewarded for the standards and practices that matter most to our customers and our business’’.
The enhancements to the TSBG follow a series of moves from Tesco to support the long-term growth and resilience of the UK agriculture sector. In May, the retailer announced an expansion of its Sustainable Pig Group, bringing more higher welfare, British pork to customers.
Tesco will deliver the improvements to the Group alongside its long-term supply partners Foyle and Kepak.
Wayne Acheson, Procurement and Agriculture Director, Foyle Food Group: ’’We are delighted that Tesco has continued its commitment to supporting its Angus supply chain through the TSBG. This new, focused group will help drive greater efficiency and improve on-farm productivity through advances in genetics, nutrition, and animal health. This contract will provide much-needed stability for many farming businesses across the UK. The Tesco Angus Scheme remains one of the strongest models of supply chain integration in the beef industry, and we are proud to be part of its continued success’’.
Matt Wyndham Lewis, Head of Agriculture at Kepak: ’’Kepak and our farmers are proud to have partnered with Tesco through the Tesco Sustainable Beef Group for the past 10 years. During that time, TSBG farmers have consistently delivered high-quality British Aberdeen Angus cattle for the Tesco premium ranges. This year, Tesco extended producer contracts from one year to three years, a significant step that has been warmly welcomed by farmers and processors alike. Longer-term agreements provide greater certainty, enabling farmers to plan ahead, invest in their businesses and continue producing the high quality beef customers expect. It is a strong vote of confidence in British beef production and in the commitment of farmers across the Tesco Sustainable Beef Group’’.
