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Morrisons to pay small suppliers immediately due to Coronavirus

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Supermarket Morrisons has moved to immediate payments for its smaller suppliers to help them during the ongoing coronavirus pandemic. It says the faster payments will support their cashflow during a difficult time for the British economy.

Morrisons is also temporarily re-classifying a smaller supplier from those with £100,000 of business-a-year with the company to those with £1 million of business, meaning that an extra 1,000 small food businesses will qualify for the new payment terms.

The move will help businesses that provide up to £1 million of turnover with Morrisons, including suppliers of local food and farmers that deal directly with Morrisons, such as those providing eggs and livestock. 

David Potts, Chief Executive of Morrisons, 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 added, “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.”

Morrisons says that it has around 3,000 small suppliers including 1,750 farmers who will benefit from the new policy which is expected to last until the end of May before being reviewed.

Photo credit: Morrisons

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