Philip Clarke Tesco

Philip Clarke

Tesco chief executive Philip Clarke has promised to make 'the most radical change in the relationship between the retailer and producer that's ever been attempted.'

Speaking at this week's NFU conference in Birmingham, UK, Clarke struck a conciliatory tone in admittingthe supermarket 'hasn't always approached the relationship with farmersin the true spirit of partnership' but added he was determined to change that.

He said shortening the supply chain - something NFU president Peter Kendall had called for earlier in the day - would be keyto the change, with more direct contracts for producers.

In a major move, Clarke also committed to offering minimum two-year contracts to any suppliers who want them.

Itcomes as Tesco, which has been rocked by the horsemeat scandal, said itwill be undertaking a 'root and branch review' of how its supply chain works.

'We will examine all aspects of the supply chain,' said Clarke. 'We will accept nothing but the highest standards. Working directly with farmers and growers is key.'

In a further announcement, Clarke said Tesco hoped to roll out its agricultural working groups - already in place in dairy, beef and pork - into fruit, veg and salads.

The supermarket will also establish an independentpanel of experts to monitor its supply chain relations and hold it to account, and appoint an agriculture director.