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Supermarket to underwrite on-farm costs

Morrisons has invested £2 million into the project which will help growers mitigate weather pressures and high costs.

Farmers harvesting potato crop from an autumn farm in Norfolk.
Farmers harvesting potato crop from an autumn farm in Norfolk.

British farming’s biggest direct supermarket customer Morrisons has launched a new scheme that will underwrite 100% of the on-farm costs for growing potatoes and carrots.

Crops are currently being grown by three potato farmers and one carrot grower, with the first produce from these farms due to be on the supermarket’s shelves by the end of the year.

The supermarket chain has invested £2 million into the project which will help farmers mitigate weather pressures and high costs such as rent and fertiliser, giving suppliers greater financial security.

If the trial proves successful, Morrisons hopes to roll out the scheme to more farms later next year.

Gareth Cosford, senior buying manager for root vegetables at Morrisons said the trial scheme will allow the chain to take all the risk associated with growing the crops.

“We understand the impact that higher costs are continuing to have on farmers who continue to grow the best quality British produce that our customers know and love,” said Mr Cosford.

Morrisons already supports farmers by buying whole crops and picking out any fruit or veg that is perfectly fine to eat but has a quirky shape or surprising size for its Naturally Wonky range.

Launched in 2015, Morrisons Naturally Wonky fruit and veg helps to minimise food waste in the field and offers affordable produce to customers.

It also gives farmers an alternative route to market.

The range includes 24 wonky varieties, and 27,000 tonnes of fruit and vegetables were sold this way in 2022.

One of the participating growers in the trial is Andrew Nash, director at Naish Farms Ltd.

He said: “Morrisons already buy our whole crop of potatoes from us, taking the top-quality and also misshapen or oversized ones and making them available to customers as part of their naturally wonky range to maximise our return and offering the best value to their customers.

“In farming there are ups and downs throughout the season. For us we are seeing greater weather challenges which may impact our crops and by being part of this new Morrisons trial, they’re underwriting our growing costs to cushion us from the associated risks and provide supply security so that we can focus on growing the very best potatoes for their customers.”

Morrisons works directly with over 2,700 farmers and growers all year round to ensure customers can purchase products of the highest quality.