Tesco calls on government for clear net zero strategy as it launches low carbon farms

Tesco has unveiled ambitious plans to aid UK farmers in transitioning to net zero, while urging the government to deliver a comprehensive strategy for sustainable agriculture. Announced at the Oxford Farming Conference, the retailer’s initiative includes the creation of two low carbon concept farms designed to trial innovative practices and accelerate sustainability in the supply chain.

Speaking at the conference, Tesco’s Chief Commercial Officer Ashwin Prasad, emphasised the need for government leadership. “As the biggest customer of UK agriculture, we know providing our customers with healthy, affordable and sustainable food wouldn’t be possible without the expertise and dedication of our farmers across the country. But to continue to thrive in the future, the industry needs more certainty and support,” he said.

The call to action is backed by a report from Tesco and Harper Adams University, which consulted over 300 UK farmers. The findings reveal deep concern within the industry, with 74 percent of farmers worried about climate change’s impact and 67 percent already experiencing its effects. However, financial barriers remain a major hurdle, with 76 percent of respondents citing high upfront costs, poor returns, and a lack of policy clarity as obstacles to adopting greener practices.

In response, Tesco is urging the government to establish a clear vision for sustainable agriculture, encompassing long-term land use and food security strategies, improved funding for innovation, and unified environmental standards to guide investment. At the same time, Tesco aims to support farmers by simplifying data collection, enhancing sustainability standards, and exploring new incentive models to mitigate financial risks.

“Many of the solutions we need exist today”

The supermarket’s latest initiative includes two concept farms in partnership with potato supplier Branston and livestock processor ABP. These farms will trial a range of cutting-edge technologies, including low carbon fertilisers, alternative fuels, advanced cold storage solutions and carbon removal techniques. Other areas of focus will include soil health, biodiversity management, grazing optimisation, and genetic advancements.

 “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 so that UK agriculture can reach its potential as a driver of both sustainability and economic growth,” Mr Prasad said.

Harper Adams University Deputy Vice-Chancellor Professor Michael Lee echoed this sentiment. “The successful Tesco Future Farmer programme is a great example of how farmers, retailers and researchers at universities like Harper Adams can all strive together to build a sustainable future,” he said.

“The challenge of moving our food and farming systems towards Net Zero and ensuring food security at the same time is huge, and we all need to work together to take it on.”

The new farms build on Tesco’s previous work in developing sustainable farming and reducing its carbon footprint. Last November, the supermarket partnered with dairy supplier Arla and fellow grocers Morrisons and Aldi in a trial of Bovaer, a methane reducing additive for cows.