Aldi is trialling a new contract offering finishers a fixed price for beef from Aberdeen-Angus cross dairy calves.
The discount retailer says its new Beef Cross Dairy Supply Chain model is believed to be the first scheme of its kind in Scotland where a farmer, processor and retailer are working together collaboratively.
The scheme is designed to integrate Aldi’s dairy and beef supply chains and give beef farmers a mutually agreed guaranteed price per kilogram for Scotch-assured Aberdeen-Angus beef over each 12-month period.
Dumfries farmer Richard Barbour is trialling the new supply partnership, which is being run in conjunction with meat processor Scotbeef, animal feed firm Harbro, and genetics company Genus ABS.
As part of the project, he will buy Aberdeen-Angus sired calves from a select group of local dairy farmers and rear and finish them, before sending for slaughter to Scotbeef’s abattoir in Bridge of Allan.
“Over recent years the Scottish beef industry has experienced severe price pressures, with many cutting livestock numbers or even exiting the industry altogether,” said Mr Barbour.
“By Aldi guaranteeing a fixed price per kilogram for the beef we produce each year, it will allow us to forecast further into the future and provides more certainty going forward.
“By taking away pricing volatility, Aldi’s Beef Cross Dairy Supply Chain model reinjects an element of certainty and confidence into what is such a crucial industry for Scotland.”
Aldi’s group buying director for Scotland, Graham Nicolson, said: “We’re excited to be working with the Barbour family to trial the model this year and hope to be able to roll it out more widely across the Scottish business over the next five years.”