Aldi has introduced accelerated payment terms for smaller produce farmers and suppliers in the UK as part of its ongoing commitment to support British businesses and the broader farming community. This initiative is particularly timely given the recent dry weather conditions across the UK, which have added financial pressures to growers, compounded by forecasts of a hotter-than-normal summer. By offering quicker access to funds, Aldi aims to help smaller suppliers manage cash flow challenges more effectively.

The new scheme targets fresh produce suppliers with an annual turnover of less than £5 million, who are now eligible for reduced payment terms effective immediately through the remainder of 2025. Eligible suppliers have been invited to participate in the scheme. Julie Ashfield, Aldi UK’s Chief Commercial Officer, explained that the company recognises the difficulties faced by smaller growers, including a dry spring and rising input costs. She describes the shorter payment terms as a practical measure to provide suppliers quicker access to cash and increased flexibility as the growing season progresses.

This move follows earlier initiatives by Aldi to reduce payment times for smaller suppliers. In September last year, for example, Aldi cut payment terms from 33 to 14 days for suppliers with annual transactions up to £250,000, benefiting around 400 UK businesses including 90 in Scotland. Tony Baines, Aldi’s managing director of buying, highlighted that this step was designed to ease cost pressures along the supply chain, particularly for smaller enterprises.

Aldi Ireland has also taken similar steps to support its supplier base. It introduced terms ensuring that invoices from suppliers with annual transactions up to €1 million are processed and paid within five working days. This policy, affecting over 200 food and drink producers, was intended to help suppliers manage cash flow difficulties during challenging economic times. John Curtin, Aldi Ireland’s group buying director, emphasised that these expedited payments assist suppliers in meeting their own payment obligations downstream.

The supermarket group underscores its commitment to fair trading practices and the maintenance of high UK food safety and animal welfare standards. Aldi has recently pledged to uphold these standards even if future international trade agreements lead to a relaxation of current regulations. For instance, the UK currently prohibits imports such as chlorinated chicken and hormone-treated beef, common in some global markets, and Aldi has signalled its intention to maintain such protections.

Overall, Aldi’s strategy to reduce payment terms for smaller suppliers in both the UK and Ireland reflects a broader recognition of the financial pressures facing the farming and food production sectors. By fostering trust and long-term relationships with its supply base, Aldi aims to ensure resilience and sustainability within the local food supply chain.