Farmers hope that Morrisons will continue to show strong support for food producers after effectively launched a price war as it looks to compete with discount retailers.
Chief executive Dalton Philips has announced plans to invest £1 billion in price cuts over the next three years to win back customers. Shoppers were lured away from the supermarket to Aldi and Lidl over Christmas.
But suppliers could be concerned that price cuts could impact on the prices they receive for their products. Mr Philips has said that Morrisons’ chicken is already the cheapest in the market.
Chris Dickinson, NFU regional poultry adviser, said Morrisons has a good record of working with producers: “We know that poultry meat consumption is growing. So much so that by 2020 chicken is due to take over from pork as the most widely consumed meat globally. Faced with this surge in demand, local producers have already invested heavily in high welfare systems but for this investment to continue producers do need to make a reasonable return.
“Morrisons have shown strong support for British meat over the years and we very much hope to see that continue.”