LIDL GOES WHOLE HOG WITH HALF A BILLION INVESTMENT INTO BRITISH PORK SECTOR

• Lidl announces £500m investment into British pork sector following £14 m injection in 2022, doubling down on its 100% everyday fresh British pork commitment
• As part of this, the discounter has moved pork producers to an open-book model that includes cost of production with guaranteed farmer margins
• It’s also launched a pork producer group to aid industry collaboration, while investing in farm initiatives to decrease emissions and fund research into welfare enhancements
• The National Pig Association has welcomed the introduction of these pork contracts and Lidl’s continued commitment to a sustainable domestic supply of British pork

26th April 2024 – 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 share¹, 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.

Richard Bourns, Chief Commercial Officer at Lidl GB, said: “This latest investment underlines our commitment to British producers, animal welfare and the environment. Acknowledging the challenges faced by the industry and its farmers in recent years, we recognised the need for intervention and the development of a bespoke solution addressing these challenges. That’s why we’ve been working closely with our suppliers and farmers, including major partners such as Cranswick and Pilgrim’s, to ensure we understand the intricacies of this supply chain and are well positioned to deliver impactful change.

“With our pork market share significantly greater than our broader market share, it highlights the substantial influence we have in this area and we’re embracing our responsibility to drive positive change. Our new pork standard is all about supporting our rural communities and ensuring the resilience of the sector while providing customers with high-quality British pork at affordable prices.”

Commenting on the move, Lizzie Wilson, Chief Executive of the National Pig Association, added: “The NPA welcomes the introduction of Lidl's pork producer contracts and its continued commitment to ensuring a sustainable domestic supply of British pork.”

Rick Buckle, Managing Director Farms - Pork Division at Cranswick Plc, said: “It's great to see Lidl's continued commitment to British pig farming and we’re thrilled to be working with them on its new standard. Together, we’ve already commenced groundbreaking research trials aimed at enhancing pig welfare and are excited to work in partnership with Lidl for years to come.”

Fábio Brancher, Operations Director for Agriculture at Pilgrim’s Europe, commented: “With Lidl’s support, this collaborative approach will provide crucial stability for our third-party farmers, shielding them from market volatility and aiding their recovery from recent challenges. This next step with Lidl underscores our commitment to supporting British farmers and fostering a sustainable future for the sector, and we look forward to developing our relationship further.”

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.

ENDS

Notes to Editors

References

¹ Kantar, MAT P3 / March 2024

About Lidl GB

Since establishing itself in Great Britain in 1994, Lidl GB has experienced continuous growth and today has over 32,000 employees, over 960 stores and 14 distribution centres in England, Scotland and Wales.

As part of the Schwarz retail group, Lidl is one of Europe’s leading organisations in the food retail industry. The supermarket, which has around 376,000 employees globally, currently operates over 12,200 stores and more than 220 logistics centres and warehouses in 31 countries.

The supermarket takes pride in providing its customers with the highest quality products at the lowest possible prices throughout Great Britain, from Kirkwall to the Isle of Wight. Social responsibility and sustainability are at the core of the company's daily operations, with the company placing a strong emphasis on its responsibility for people, society, and the environment. Lidl GB is passionate about working with British producers and sources two thirds of its products from British suppliers.

The Schwarz Group, which operates worldwide as a retail group, generated a turnover of €154.1 billion in the financial year 2022. For more information about Lidl GB visit corporate.lidl.co.uk.