皇家华人

NFU responds to Tesco plans for extra fee for selling online

An image of the Tesco supermarket sign.

The news that Tesco intends to charge a new fee, known as a 'fulfilment fee' for products sold online, has been branded by the NFU as a "stark demonstration of lack of fairness within the supply chain".听

4 May 2023

Have your say

Have you engaged with Tesco on their request for a fulfilment fee? As part of his engagement with Tesco, the Groceries Code Adjudicator (GCA) is calling for information from farmers and growers regarding their experiences with the retailer.

Please contact the Food Business Unit to discuss further, any information will be treated anonymously [email protected].

21 April 2023


The extra charge will apply to all products sold through Tesco鈥檚 website and orders made via its wholesale Booker business.

In response to this announcement, the NFU is in dialogue with the GCA, Mark White, to question whether Tesco鈥檚 approach complies with the GSCOP (Grocery Supplier Code of Practice).

GCA meeting

NFU President Minette Batters recently met Mark White to discuss the issue further. The GCA explained how he had engaged directly with Tesco following the announcement in early March.

The retailer has since confirmed that the fee is voluntary and that no products will be de-listed if a supplier refuses to agree to pay.

In March, Tesco held a supplier webinar to reaffirm these messages and apologise for how some elements of the letter were dealt with.

鈥淭he food industry desperately needs fairness and collaboration, not further erosion of trust."

NFU President Minette Batters

However, Tesco has not withdrawn its plans and continues to make the argument that the cost of online shopping means they need suppliers to come on board to pay a share of the cost.

The GCA is asking suppliers to come forward with their evidence on this matter as he continues to engage with the retailer. Suppliers can reach out via email at [email protected] or 0207 215 6537.

Industry needs fairness

Minette Batters has highlighted how the announcement has come at a time when crippling production costs mean many farmers and growers can鈥檛 afford to continue producing food at scale, resulting in supermarket shortages of fruit, salads and eggs.

She explained: 鈥淭he food industry desperately needs fairness and collaboration, not further erosion of trust鈥.

皇家华人has continually warned that British food is under threat due to a lack of fairness for farmers and growers throughout the supply chain.

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This page was first published on 21 April 2023. It was updated on 07 June 2023.


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