Morrisons has vowed to make immediate payments to smaller suppliers in a bid to help them get through any disruption caused by the coronavirus outbreak.

The supermarket said it will start making temporary payments to smaller suppliers from next week until at least the end of May to “support their cashflow during a difficult time for the British economy”.

The retailer also confirmed it would be temporarily reclassifying companies with up to £1m turnover a year as smaller suppliers. It currently classifies those with £100,000 turnover as small suppliers.

The grocer said this will mean an extra 1,000 small food businesses will qualify for its payments and would cover those local food suppliers and farmers – providing eggs and livestock.

Morrisons has around 3,000 small suppliers, including 1,750 farmers.

Chief executive David Potts said: “We are Britain’s biggest single food maker and we want to be there for the smaller food makers, farmers and businesses that supply Morrisons. We’re a British family business and we will be doing our best to support them through this challenging period.”

Environment secretary George Eustice said: “These measures will support our farmers and food producers in their vital work of feeding the nation.

“We already have a highly resilient food supply chain in this country and I am continuing to work closely with Morrisons and other retailers on their response to coronavirus. The government has pledged £30bn in this year’s Budget for those affected and we’ve been clear that we will do whatever it takes to support people and businesses.”

Topics

Morrisons calls for relaxed competition laws during coronavirus crisis