UK based Tesco brings a new kind of contract to the potato business

Tesco, a UK based retailer, has announced that they will start making three-year contracts with a group of farmers and packers. This type of contract follows the path laid by similar contracts with, for example, dairy and meat farmers. The contract is said to bring certainty to both the farmers and the retailer. The retailer promises to buy a certain amount of potato for prices that cover production costs and take inflation into account. The bigger idea behind these contracts is to promote and secure domestic food production. Read more from PotatoPro.