A growing number of British farmers and small food producers are facing serious financial pressure due to long payment delays from major UK supermarkets. While shelves remain fully stocked and advertising campaigns champion British produce, many of the companies providing that food are struggling behind the scenes with mounting cashflow problems.
On average, large suppliers wait between 30 to 60 days to be paid, but smaller producers and own-label manufacturers often report waiting 60, 90, and in some cases over 120 days for invoices to be settled. For perishable goods like fresh fruits, vegetables, meat and dairy, the standard expectation is faster turnaround—ideally within 14 to 30 days—but even in these cases, delays are not uncommon.
For small businesses, such waiting periods can be devastating. The delay between delivering goods and receiving payment means companies must operate without incoming cash for months at a time. This causes critical disruption to everyday operations—forcing producers to dip into credit lines, delay paying staff, halt investments, or even exit the market entirely.
A small Yorkshire-based jam manufacturer, supplying two leading UK retailers, shared anonymously: “They expect quick turnarounds, strict standards and flexibility from us, yet they take up to three months to pay. We’re acting like a bank for them, not a supplier.”
Supermarket payment practices vary widely. Tesco and Sainsbury’s have made commitments to pay smaller suppliers—those with under £250,000 in annual turnover—within 14 to 30 days. However, larger contracts often involve longer payment terms, especially for shelf-stable goods like tinned items, own-label snacks or ambient groceries.
Asda and Morrisons have been reported by several suppliers to operate on terms closer to 60 to 90 days, and disputes or invoice queries can add further delays. Lidl and Co-op typically pay between 30 to 60 days, though practices may vary across departments and regions. Waitrose, meanwhile, is viewed as one of the most supplier-friendly retailers, often settling invoices within 14 days for smaller or local suppliers.
In the midst of this, Aldi has stood out as a positive example. The discount retailer recently announced a renewed commitment to paying British farmers faster, with many fresh produce suppliers now being paid within 14 to 30 days. This move comes in response to mounting concerns over the economic strain placed on agricultural producers following inflation and higher input costs.
“British farmers are at the heart of everything we do,” Aldi said in a recent statement. “We’re proud to support them not only through long-term partnerships but also by making sure they receive prompt payment.”
Such a policy shift aligns with the broader expectations set by the Groceries Supply Code of Practice (GSCOP), which requires UK supermarkets to deal fairly with suppliers. The Groceries Code Adjudicator (GCA), which monitors compliance, has urged retailers to review their internal processes and prioritise timely payments—particularly to smaller businesses.
In the GCA’s 2024 annual survey, nearly one in five suppliers said they had experienced delays in payment. Among smaller suppliers, the issue was far more widespread. Despite the existence of the Code, many suppliers remain reluctant to speak out for fear of retaliation or losing contracts.
At a time when food security, local sourcing, and sustainable farming are under the spotlight, one of the simplest ways supermarkets could support British producers is by paying them on time. While faster payments don’t generate headlines like environmental pledges or packaging reductions, they are essential for keeping the food supply chain healthy and resilient.
As Aldi and Waitrose raise the bar, the pressure is mounting on other grocers to follow suit. Supporting British suppliers should start not with slogans, but with swift, fair, and reliable payments.