McCain has today confirmed a further £35 mln of investments in its supply chain, as the company hopes to boost supplies of UK potatoes and bolster its regenerative farming initiatives. The frozen chips giant said that its indexation model for determining payments to the farmers who supply the company had resulted in a 31 per cent increase in contract pricing to "ensure its growers continue to be fairly compensated in light of soaring inflation".
The upsurge in contract prices - which comes in response to soaring energy and fertiliser costs across the farming industry, as well as the fallout from last summer's record heat wave - means McCain's will pay an additional £35 mln to its farmers this year.
The more follows last year's contract price increase of 15 per cent and the provision of a supplementary £5m energy support package. McCain said that for the current growing season it would also pay a supplement to those farmers who have had to renew electricity contracts or are paying variable rates.
Source: businessgreen.com