British multinational groceries and general merchandise retailer Tesco has unveiled its ambitious plans to establish two low-carbon concept farms as part of its comprehensive efforts to trial and scale sustainable farming practices throughout the UK. This initiative, announced at the Oxford Farming Conference on January 10, 2025, aims to test innovative methods to reduce environmental impacts, sharing findings with the broader farming community.
One of the farms will be developed through a partnership with leading potato supplier Branston, and the other will work with livestock processor ABP. Through these collaborations, Tesco aims to trial advancements such as low-carbon fertilizers, alternative fuels, cutting-edge cold storage solutions, and carbon removal technologies. Additional areas of focus will include improving soil health, managing grazing effectively, enhancing biodiversity, and implementing genetic improvements.
According to Ashwin Prasad, Tesco’s chief commercial officer, these farms are intended to be practical demonstrations of pathways to achieving net-zero emissions. He affirmed, "We’ve already been working with farmers to help them reduce their environmental impact, from providing incentives to measure their carbon footprint to rolling out new innovations like low carbon fertilisers." This commitment reflects Tesco’s broader mission to address climate challenges and empower the agricultural sector to meet net-zero goals.
Prasad emphasized the importance of collaboration not only between Tesco and farmers but also the need for government support. He urged officials to develop a long-term food security strategy, advocating for clearer sustainability standards and enhanced funding for innovations promoting sustainability. He believes governmental action is necessary to create the right environment for such ambitious sustainability goals.
Highlighting the urgency of these initiatives, Prasad stated, "The industry needs more certainty and support. Many of the solutions we need exist today, but government and the food industry need to make sure we have the right incentives in place. This is key for UK agriculture to thrive and to secure its role as both a sustainability driver and economic contributor." His comments came alongside findings from Tesco's recent report, which consulted over 300 farmers on sustainable practices and uncovered significant concerns about climate change's impact on their operations.
The report revealed alarming statistics: 74% of farmers surveyed expressed worry about climate change affecting their farms. Two-thirds acknowledged they’ve already started experiencing the adverse effects of this phenomenon. Further compounding the issue, three-quarters noted being unable to implement desired environmental measures due to high upfront costs, risks of inadequate returns, and insufficient policy certainty from the government.
With these hurdles outlined, Tesco has made its case for government involvement more urgent. It is advocating for the establishment of consistent environmental standards across the board so farmers can repeatedly measure progress and prioritize investments effectively. By simplifying and standardizing data collection, Tesco hopes to help farmers manage investment risk more efficiently.
The development of the low-carbon farms is not only about immediate impact but also nurturing the agricultural ecosystem for future generations. Tesco is dedicated to providing farmers with authentic demonstrations of new sustainable techniques through these farms. This commitment reinforces its position as the largest buyer of UK agricultural products and highlights its responsibility to support farmers by facilitating effective methods for cutting emissions.
Prasad concluded his remarks by recognizing the pivotal role played by farmers across the nation: "Providing our customers with healthy, affordable, and sustainable food wouldn’t be possible without the expertise and dedication of our farmers across the country." His acknowledgement of their contribution underlines Tesco’s recognition of the interconnectedness of sustainable farming practices and corporate responsibility.
Overall, Tesco's initiative marks a significant step forward not just for the company, but for the agricultural industry at large. With its focus on sustainable development and the pressing need for cooperation with the government, this project is poised to influence how farming is approached, enabling the sector to meet its net-zero ambitions strategically.