Tesco's UK chief executive faced pressure at the NFU Conference over farm returns, import standards, and long-term supply commitments, with several exchanges focusing directly on fresh produce.
Ali Capper, chair of British Apples and Pears, asked whether Tesco would offer 20-year written contracts to give growers the confidence to invest in orchards and infrastructure. While acknowledging the need for longer-term certainty, Ashwin Prasad said Tesco does not typically issue 20-year contracts, instead pointing to long-standing supplier relationships that have lasted decades.
Apple production was repeatedly referenced as an example of the tension between retail models and grower profitability. Tesco reported selling 34,000 tons of British apples in the past year, but growers argued that orchard investment requires predictable long-term pricing structures.
Imports were another flashpoint, particularly for fresh and processed fruit and vegetable lines. Farmers questioned why products grown to lower standards abroad can enter processed categories while UK growers operate under tighter regulatory requirements. Prasad said Tesco supports a level playing field and consistent benchmarks, but did not commit to legislative changes.
Environmental transition in fresh produce was also discussed. Prasad referenced Tesco's low-carbon concept farm in Lincolnshire, where 500 tons of potatoes grown using reduced-emission techniques were sold last year. He said the aim is to test production models before scaling them across suppliers.
Tesco also highlighted sales trends in fresh and chilled categories, reporting fresh food sales up 6.6% year on year in January. Apples remain one of the retailer's key British produce lines.
Throughout the session, growers raised concerns about whether pricing models, import policies, and contract structures are sufficient to sustain long-term investment in fruit and vegetable production. While Tesco reiterated its "British first" sourcing approach, producers pressed for measurable changes that would improve farm-level returns in fresh produce supply chains.
Source: FarmingUK
