Aldi has extended its fast-track payments scheme for over 200 Irish suppliers through to the end of 2020 in response to the COVID 19 pandemic.
Aldi Ireland increased its spend on Irish produced food and drink by over 24% since late March, as it experienced heightened customer demand during the peak of the COVID 19 lockdown.
Irish pork, in particular, saw a 35% increase in sales over the last few months, while lamb sales increased by 23%.
The shorter payment terms initiative for small and medium suppliers help ensure Irish producers are 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 T.D. said: “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. 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: “The last few months have been a huge challenge for our society and economy, including Ireland’s food and drink sector. The feedback from our supply base has been that the shorter payment terms we introduced as a temporary measure to last the duration of the Covid-19 crisis have made a real difference, greatly improving their cash-flow requirements and helping them pay their farmers and suppliers along the chain promptly.”
Aldi 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. 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.