Morrisons to move to making immediate payments to small suppliers
The Morrisons supermarket chain is moving to make immediate payments to its smaller suppliers as it looks to help support their cashflow through the coronavirus pandemic.
The retailer is also temporarily re-classifying a smaller supplier from those companies with £100,000 worth of business with the supermarket per year to those with £1 million worth of business. The move will result in an extra 1,000 small food businesses qualifying for the new payment terms.
David Potts, chief executive of Morrisons, said: “We are Britain’s biggest single foodmaker and we want to be there for the smaller foodmakers, farmers and businesses that supply Morrisons. We’re a British family business and we will be doing our best to support them through this challenging period.”
Environment Secretary George Eustice said: “These measures will support our farmers and food producers in their vital work of feeding the nation. We already have a highly-resilient food supply chain in this country and I am continuing to work closely with Morrisons and other retailers on their response to coronavirus.”
Morrisons has around 3,000 small suppliers including 1,750 farmers that will benefit from the changed terms.
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