Aldi extends fast-track payments for over 200 Irish suppliers to end of 2020
Aldi Ireland reports it increased spend with Irish suppliers by over 24% during Covid-19 crisis
4 August 2020 | 0
Aldi Ireland reports it increased spend on Irish-produced food and drink by over 24% since the beginning of the pandemic, due to heightened customer demand.
Aldi’s Irish meat products, which are all Bord Bia assured, recorded double digit sales increases. Specifically, pork was up by +35%, lamb by +23%, beef by +22%, and poultry by +17%.
The retailer also confirmed it is extending its temporary shorter payment terms initiative for small and medium suppliers to the end of the year, to further help its supply base impacted by Covid-19, ensuring they get paid as quickly as possible.
In March, Aldi reduced its payment terms for all suppliers that transact up to €1 million worth of business annually, with payments now processed and paid within five working days. Over 200 Irish food and drink producers Aldi partners with will continue to benefit from the shorter payment terms.
Minister for Agriculture, Food and the Marine, Dara Calleary, welcomed Aldi’s decision.
“This initiative by Aldi was very welcome in the spring, so I am really pleased to see this extended through the rest of this year,” Minister Calleary said. “I have met many farmer representatives in recent days and it is clear we need to do more to ease the burden on the producers and suppliers of our essential products. Getting payments flowing back to farmers in a prompt fashion is vital and I hope we can see more work being done on this in the period ahead.
Cash-flow is such an essential component for farmers, particularly our small farms and family-farm businesses at this time,” he added. “As Minister I will continue to support initiatives such as this and I encourage everyone along the food producing, processing and supply chain to look at new and creative ways to get payments flowing back through the system as efficiently as possible.”
John Curtin, Aldi Ireland’s group buying director said feedback from its supply base showed its shorter payment terms have “made a real difference, greatly improving their cash-flow requirements and helping them pay their farmers and suppliers along the chain promptly”.
Aldi said the group is committed to growing its Irish supply base and increasing the number of Irish products available in its stores. It has invested more than €2,500,000 in its Grow with Aldi supplier development programme since 2018, which offers up-and-coming artisan Irish food and drink producers the chance to have their products listed in Aldi’s 142 stores. In total, 45 Irish producers took part in the programme this year, which saw over 75 of the most innovative Irish made products on sale in Aldi stores during May.