Asda has backed out of a commitment it made in October to stock exclusively British beef, angering farmers who say Asda’s decision is “incredibly disappointing” given the recent rise in fertiliser costs.

The supermarket had called on major supermarkets to "fully commit to championing British produce by properly supporting our homegrown producers" and to paying farmers a fair price that reflects the true cost of beef production to the highest welfare standards. 

The supermarket chain has blamed rising prices in the UK for taking the decision to stock cheaper produce from the ROI to “deliver the best value for customers”.

The decision is embarassing for George Eustice, the environment secretary, as he had called on farmers to stand up to retailers “to ensure that the money they are paid reflects the costs of their production”. Eustice had also claimed that despite rising farm gate prices this did not mean it would have to translate to higher prices in the shops.

Hannah Anderson,Managing Director of ethical online food retailer 44 Foods calls the decision "another sudden blow to those already struggling across the farming industry." 

“We know from working with our own producers that over recent years, British farmers have faced many challenges with prices being well below the cost of production, resulting in a declining British beef herd. Recent increases in prices for livestock, rising feed prices, labour and fuel have added even more pressure. 

“We’ve been open and honest with our own customers, contacting them back in April to explain the reasoning behind price increases for our beef products. That's why it’s so disappointing to see this latest announcement from ASDA in what is another sudden blow to those already struggling across the farming industry.

“Inflation and deflation of beed prices are determined by many independent variables including consumer demand, supply of livestock and imports. By supporting our British farmers you enable them to re-invest in their businesses, ensuring their viability, allowing them to raise their stock to the highest welfare standards and it means that they can continue to offer customers the best quality British beef. 

“We’ve seen through our own business that customers are willing to pay that little bit more for the peace of mind that their meat hasn’t been imported from far and wide and want to support British producers. We know that the demand is there and it's time for bigger supermarkets to fully commit to championing British produce by properly supporting our homegrown producers."