Tesco has called on the Government to deliver a clear plan to support British farming in the transition to net zero amid ongoing turmoil in the sector.
In a speech at the Oxford Farming Conference on Friday, the supermarket’s chief commercial officer Ashwin Prasad said the industry needs a clear vision for sustainable agriculture, including greater investment and policy certainty.
It comes after Environment Secretary Steve Reed told the conference on Thursday that the primary purpose of farming is food production as he outlined measures to boost profits, restore nature and diversify incomes.
His speech was overshadowed at the event by angry protests and repeated questions over last year’s budget measures to introduce inheritance tax on farm businesses, which has become a political flashpoint for an industry struggling with rising costs, unfair supply chains and climate change.
Tesco is now calling on the Government to better support UK farmers to drive sustainable growth through a long-term land use strategy, improved funding for all stages of innovation and setting common environmental standards.
Mr Prasad said: “As the biggest customer of UK agriculture, we know providing our customers with healthy, affordable and sustainable food wouldn’t be possible without the expertise and dedication of our farmers across the country.
“But to continue to thrive in the future, the industry needs more certainty and support.
“Many of the solutions we need exist today, but government and the food industry need to make sure we have the right incentives in place so that UK agriculture can reach its potential as a driver of both sustainability and economic growth.”
The supermarket outlined a series of recommendations to Government for a clear sustainable farming plan, based off its research with Harper Adams University.
Farmers in tractors make their way along the A303 near Middleton, Hampshire during a national tractor rally organised by Farmers To Action (Andrew Matthews/PA)
After consulting more than 300 UK farmers on the future sustainability of the industry, the researchers found that 74% are concerned about the impact of climate change and 67% are already seeing the effects.
But the survey also found that 76% have not been able to implement all the environmental measures they want to because of high upfront costs, the risk of poor financial returns and a lack of policy certainty from government.
It comes as Tesco announced that it is working with potato supplier Branston and livestock processor ABP to launch two low carbon concept farms in its UK supply chain.
The retailer has committed to the multi-year project, where farms will trial new technologies such as low carbon fertilisers, alternative fuels and carbon removal techniques as well as sustainable practices in soil management, grazing management, biodiversity management and genetic improvements.
The farms will aim to provide farmers in Tesco’s supply network with share learnings.
Michael Lee, Harper Adams University deputy vice chancellor, said: “Farmers know the importance of tackling climate change – with most reporting they are already seeing its effect on their farms.
“The successful Tesco Future Farmer programme is a great example of how farmers, retailers and researchers at universities like Harper Adams can all strive together to build a sustainable future.
“The challenge of moving our food and farming systems towards net zero and ensuring food security at the same time is huge, and we all need to work together to take it on.”
An Environment Department spokesperson said: “Our commitment to farmers is steadfast. It’s why this Government is investing £5 billion into farming over the next two years – the largest ever directed at sustainable food production and in our country’s history.
“As we set out in our Plan for Change, we are focused on supporting our farmers, delivering nature recovery, supporting rural economic growth and boosting Britain’s food security.”