// Morrisons to make immediate payments to smaller suppliers to help them during the coronavirus pandemic
// Farmers, foodmakers & other small businesses will be paid early as they deal with impact
// Morrisons also temporarily re-classifying a smaller supplier to those with £1 million of business
Morrisons is to set to make immediate payments for its smaller suppliers to help them during the ongoing coronavirus pandemic.
The Big 4 grocer said 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 per year with the company to those with £1 million of business.
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The retailer said this means an extra 1000 small food businesses will qualify for these 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 direct with the grocery chain.
Morrisons has around 3000 small suppliers, including 1750 farmers that will benefit from the immediate payments.
The retailer said it would start the temporary payment terms next week and it is expected to last until the end of May before being reviewed.
“We are Britain’s biggest single foodmaker and we want to be there for the smaller foodmakers, farmers and businesses that supply Morrisons,” chief executive David Potts said.
“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 £30 billion 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.”