The planned SFG for pigs could mark a watershed in the fortunes of the British pig industry, explained NPA general manager Dr Zoe Davies. She added: "British pig-keepers have been plagued by short-term supply chains and volatile costs, which have prevented them from investing for the future.
"The new direct supply contracts announced by Tesco should be available for around 140 pig-keepers early next year and, in the NPA’s view, could help transform British pig production."
Davies also said the NPA had been working closely with the supermarket chain on the supply of the new contracts, which she said could introduce an "unprecedented level of transparency" in the higher welfare supply chain as well as for independently audited British pork.
The NPA has also commended Tesco’s vision in introducing new supply policies and especially during a tough economic climate. The NPA has also said that it plans to carry on working with the nation’s largest retailer on initiatives.
The new Tesco whole-carcase supply group will be administered by a committee led by farmers, which will review prices every month and take into account the impact of feed costs on the cost of production.
NPA chairman Richard Longthorp said: "This transparency and the direct linking of pig prices to increasingly volatile costs should bring benefits to the whole chain through fairer sharing of risk and reward."