0
In a significant initiative to bolster the British pork industry, Lidl GB has announced an investment of £500 million into the sector. This investment ensures the continued production of high-quality British product at the best possible prices for customers.
As the fourth-largest retailer in the fresh pork category with an 11% market share, Lidl is taking action to address recent sector-wide challenges. These include rising costs, a Chinese import ban on EU pork, and butcher shortages, which led to a significant backlog of healthy pigs and financial worries for producers. Being the second-largest retailer to have a 100% everyday fresh British pork pledge, the move represents a doubling down by the discounter on its support for British producers through the introduction of its new ‘Lidl Pork Standard’.
As part of its new standard, Lidl has moved pork producers to an open-book producer costing model that includes the on-farm cost of production, guarantees minimum producer volumes, and includes a fixed margin for farmers. This change was developed in collaboration with pork producers through its newly created ‘Lidl Pork Producer Group’, as the retailer recognises the need for a more sustainable pricing model within the pork sector for suppliers and farmers.
Through its new pork producer group, Lidl will fund research and development projects aimed at mimicking the natural behaviours of pigs, such as rooting, sniffing and chewing, in turn improving their overall wellbeing. In a new trial, 3D cameras have been introduced to record the nature and frequency of the animals’ enrichment interactions, with the data being subsequently used to enhance welfare.
As part of the three-pronged approach and through collaborative efforts, Lidl is investing in assessing the carbon footprint of all the farms in its pork producer group and subsequently putting plans in place to reduce these emissions. Alongside this, it will also be investing over £250,000 in at-risk GB catchments to support river health and water quality, while working to achieve deforestation-free soy sourcing by the end of 2025.
This latest investment follows an injection of over £14 million into the industry in 2022 when the market price fell far below farmer cost of production. Lidl became one of the first retailers to react, increasing the price paid to farmers to ensure it was above market price on three separate occasions, as it supported farmers through volatile market conditions.
This substantial move exemplifies Lidl’s proactive stance towards sustainable growth and support for British producers, reinforcing its position as a leading advocate for quality and responsibility. Its latest investment forms part of the discounter’s broader £15 billion investment into the British food industry between FY20 – 25, which is set to surpass initial projections by £2 billion.
April 26, 2024 - Lidl
