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Aldi leads backing of UK farmer-friendly 'fruit and veg pledge' Aldi leads backing of UK farmer-friendly 'fruit and veg pledge'
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The German discount supermarket chain Aldi has stolen a march on rivals in Britain by throwing its weight behind a groundbreaking national initiative to back British farmers.The German discount supermarket chain Aldi has stolen a march on rivals in Britain by throwing its weight behind a groundbreaking national initiative to back British farmers.
It is the first retailer to sign up to a so-called “fruit and veg pledge” drawn up by the National Farmers Union, which aims to improve long-term relationships with British growers and suppliers, boosting their profitability. It is the first retailer to sign up to a so-called fruit and veg pledge drawn up by the National Farmers Union, which aims to improve long-term relationships with British growers and suppliers, boosting their profitability.
The code includes a commitment to supplying seasonal British fruit and vegetables and stripping out bureaucracy and unfair charges.The code includes a commitment to supplying seasonal British fruit and vegetables and stripping out bureaucracy and unfair charges.
Aldi has committed to providing promotions that will not be financed by growers, overturning the traditional supermarket model that relies on direct funding from suppliers.Aldi has committed to providing promotions that will not be financed by growers, overturning the traditional supermarket model that relies on direct funding from suppliers.
The grocer, which overtook Waitrose to become the UK’s sixth largest in March, has pledged to operate simple agreements with no penalty rates of mechanisms to reclaim money if sales fail to live up to expectations. The grocer has pledged to operate simple agreements with no penalty rates of mechanisms to reclaim money if sales fail to live up to expectations.
It also agreed not to charge suppliers for late or missed deliveries, or make deductions for customer complaints. Such charges have been a huge concern for the industry, to the extent that the Groceries Code Adjudicator launched an investigation into customer complaint charges and recently produced a best practice report for the industry to adopt. It agreed not to charge suppliers for late or missed deliveries or make deductions for customer complaints. Such charges have been a huge concern for the industry, to the extent that the Groceries Code Adjudicator launched an investigation into customer complaint charges and recently produced a best practice report for the industry to adopt.
The farmerss’ union is calling on all retailers to sign up publicly to the pledge, which has taken three years to draw up since the publication of its Catalyst for Change report. The farmers’ union is calling on all retailers to sign up publicly to the pledge, which has taken three years to draw up since the publication of its Catalyst for Change report.
The study found millions of pounds had been stripped out of the fresh produce sector through poor supply chain practices and a short-term approach to relationships with growers and intermediaries, damaging farmers’ ability to produce fruit and vegetables.The study found millions of pounds had been stripped out of the fresh produce sector through poor supply chain practices and a short-term approach to relationships with growers and intermediaries, damaging farmers’ ability to produce fruit and vegetables.
Dr Chris Hartfield, the NFU’s chief horticultural adviser, said: “We have been talking to numerous retailers and Aldi is the first to sign up publicly. The pledge is a real breakthrough – it is about stripping out unwieldy bureaucracy and charges and minimising market volatility for smaller suppliers, which can kill off their businesses. We hope other supermarkets will sign up very soon and we encourage them to do so. This will benefit everyone in the supply chain, from growers to shoppers.”Dr Chris Hartfield, the NFU’s chief horticultural adviser, said: “We have been talking to numerous retailers and Aldi is the first to sign up publicly. The pledge is a real breakthrough – it is about stripping out unwieldy bureaucracy and charges and minimising market volatility for smaller suppliers, which can kill off their businesses. We hope other supermarkets will sign up very soon and we encourage them to do so. This will benefit everyone in the supply chain, from growers to shoppers.”
The German-owned discount chain may seem an unlikely champion of British brassicas and beetroot. Renowned for its flash sales of unexpected items such as ski poles as well as economically priced continental cheeses and meats, Aldi is currently the fastest growing grocer in the UK and overtook Waitrose to become the UK’s sixth largest in March.The German-owned discount chain may seem an unlikely champion of British brassicas and beetroot. Renowned for its flash sales of unexpected items such as ski poles as well as economically priced continental cheeses and meats, Aldi is currently the fastest growing grocer in the UK and overtook Waitrose to become the UK’s sixth largest in March.
According to the NFU, British fresh produce is worth more than £3bn every year to the British economy. Last year more than 40% of Aldi’s fresh produce was British - significantly more than the industry average of around 35%. Aldi has grown to become the fourth largest retailer of fresh produce in the UK – with a 13% share of the market – and is set to become the third largest. According to the NFU, British fresh produce is worth more than £3bn every year to the British economy. Last year, more than 40% of Aldi’s fresh produce was British, significantly more than the industry average of about 35%. Aldi has grown to become the fourth largest retailer of fresh produce in the UK – with a 13% share of the market – and is set to become the third largest.
Tony Baines, managing director of buying at Aldi, said: “True to our family values, we treat growers and packers across the UK equally and fairly. This allows us to build long-term and sustainable relationships with them, which in turn enables our customers to benefit from unbeatable prices and quality.” Tony Baines, managing director of buying at Aldi, said: “True to our family values, we treat growers and packers across the UK equally and fairly. This allows us to build long-term and sustainable relationships with them, which in turn enables our customers to benefit from unbeatable prices and quality.
He went on: “The transparency and fairness with which we treat all our suppliers was recently recognised by the Groceries Code Adjudicator’s annual supplier survey, which named Aldi as the best performing grocery retailer for compliance.” ”The transparency and fairness with which we treat all our suppliers was recently recognised by the Groceries Code Adjudicator’s annual supplier survey, which named Aldi as the best performing grocery retailer for compliance.”
Retailers have been doing more to ensure less waste of British produce, including relaxing their product specifications to allow the sale of more ‘wonky’ fruit and vegetables in store. In January, Asda trialled a pilot selling mishapen produce which has since been extended after being embraced by consumers. Retailers have been doing more to ensure less waste of British produce, including relaxing their product specifications to allow the sale of more “wonky” fruit and vegetables in store. In January, Asda trialled a pilot selling mishapen produce which has since been extended after being embraced by consumers.
The NFU said it has been involved in negotiations with other major UK retailers, including Tesco, the largest. The chain is poised to announce a new agriculture director to replace Tom Hind – who was poached from the NFU – and who is stepping down little more than 18 months after taking on the role. The NFU said it had been involved in negotiations with other major UK retailers, including Tesco, the largest. The chain is poised to announce a new agriculture director to replace Tom Hind – who was poached from the NFU – and who is stepping down little more than 18 months after taking on the role.