Have aligned contracts hit their sell by date

Posted on: 22/02/22

Numerous Sainsburys and Tesco aligned producers are now contacting Ian questioning whether retailer aligned contracts have a role including the fact they are miffed that since 2020 the aligned milk price has been astray of the non-aligned.  Taking into account Scaleback Muller Tesco farmers claim it was back in October 2020 since there was any appreciable differences between the Muller Direct and Tesco aligned farmgate prices.  Since then, the gap has narrowed and in recent months has completely vanished.  All recognise there is a cost of circa 1ppl in order to fulfil the additional retailer requirements.

 

In addition, Tesco’s agricultural Manager Tom Atkins cops for criticism from several aligned farmers as been very distant and unwilling to communicate with farmers unlike his predecessors.  This could be intentional but if it isn’t its sure contributing to push aligned farmers away from Tesco.

 

Whilst the long held understanding that if you fail or refuse a Sainsburys Audit you will be kicked off in 3 months appears to have been changed, Ian has been informed that if any Tesco aligned producers wish the leave it’s not a problem, they are free to leave.  The Sainsburys suppliers claim they have been informed that it will trigger an inquest which could take up to 12 months to conclude during which time they continue to supply the retailer.

Note this statement did not come from Tom Atkins.