Tesco has announced it will issue contracts worth £12 million over three years to help support British potato growers.
It will become the first UK retailer to introduce long term contracts for potato growers and packers.
The supermarket said the new Tesco Sustainable Farming Group - Potatoes (TSFG-Potatoes) will provide growers with financial certainty allowing them to invest in their businesses.The TSFG-Potatoes will be made up of a collection of producers and industry experts from across the country.
Matt Simister, Tesco commercial director for fresh food, said: “Whilst there isn’t a single simple solution to resolve the uncertainty faced by many potato growers, it’s important that we all play our part.
"These new contracts will help to bring more confidence back into the whole potato supply chain and build a truly sustainable British potato industry."
NFU Horticulture and Potatoes Adviser, Lee Abbey, said: "The NFU welcomes initiatives that provide a greater level of security, confidence and transparency to growers and we’re pleased that Tesco has followed through its commitment, first announced at the NFU conference in 2014, to develop a dedicated potato contract.
"The Tesco Sustainable Farming Group is a great example of how collaboration can work and it fits very much within the principles of the NFU’s Fruit and Veg Pledge. We hope growers are able to benefit from this new approach."
Crawford Black, a potato grower from Fife, said: "These new three-year rolling contracts will give my family business more confidence to look further ahead, make plans and invest for the future, safe in the knowledge that we have a long-term commitment from Tesco to continue to work with us."