Demand for fresh food ‘has never been stronger’

The CEO of Tesco has called on suppliers to help meet a rising demand for fresh, healthy food “that has never been stronger”. 

Ashwin Prasad, who spoke at the 2026 NFU Conference today (25 February), reminded delegates that fresh food sales at Tesco rose by 6.6 per cent in January, before adding: “I invite you to collaborate with us to meet that demand.”

Prasad also outlined a number of supplier initiatives to help build more resilient supply chains, including low carbon fertilisers, alternative fuels and energy-efficient infrastructure at its low carbon potato concept farm in Lincolnshire, where it works with supplier Branston.

He described how Tesco wants to get practical innovation onto farms, following feedback from farmers that they “do not want more research that sits on the shelf”.

The retailer is continuing to work closely with its Sustainable Farming Groups (SFGs), Prasad confirmed, to facilitate collaboration with farmers, share best practice and incentivise sustainability initiatives. 

“I fully recognise financial sustainability must be the cornerstone of the partnerships we have with you all,” he said.

“Our SFGs across dairy, beef, sheep, pigs, and produce benefit from transparent pricing structures, with each one specifically tailored to the needs of that sector.

“And because farmers have told us they need help achieving shared environmental goals, we’ve also introduced sustainability-linked incentives for over 400 farmers across the groups,” he said. 

Speaking about the government’s upcoming food strategy, which is expected later this year, Prasad said it should offer a “long-term vision for UK agriculture that creates a level playing field”. 

“We must give all of you [British farmers] clarity on the role you can play in the UK’s wider transition to net zero, as well as create the right policy conditions for you to be able to invest in, and benefit from that transition,” he added.