McCain Foods and NatWest Minimize the Potato Producer's Financial Hurdles

McCain Foods and NatWest have developed an initiative to minimize financial hurdles for potato producers transitioning to sustainable agriculture techniques.

NatWest will provide further financial help to McCain's potato growers through its asset financing business Lombard, in what the companies claim is a first-of-its-kind venture in the UK.

McCain has also promised to pay a portion of the interest owed on investments that support regenerative farming practices. The company explained that farmers typically had to make upfront expenditures for new procedures and equipment, which could be a barrier to the adoption of more sustainable agricultural methods.

By 2030, McCain has previously committed to implementing regenerative agriculture on all of its potato-growing lands worldwide.

“Given the increasingly unpredictable climate, the shift towards regenerative agriculture practices is vital to futureproof the farming industry, and we want to support McCain potato farmers who are making the transition towards more sustainable operations. We know that switching to regenerative agriculture can come with financial implications, and this new partnership will be a part of the effort to alleviate those barriers,” James Young, VP of agriculture at McCain GB&I, said.

Ian Burrow, head of agriculture, NatWest added that NatWest and Lombard are thrilled to be working with McCain to help their farmers invest in sustainable farming practices.

“Agriculture is a sector of paramount importance to the UK economy, and one which is at a turning point, facing higher costs, inflation, and the daunting challenge of net zero,” Burrow declared, cited by The Grocer.

McCain joined the Sustainable Markets Initiative (SMI) Agribusiness Task Force along with several companies and NGOs, including NatWest, as part of its larger regenerative agriculture initiatives to speed up the global adoption of greener farming practices, which has been slowed down by high costs.

To maintain the long-term viability of potato farming, McCain has spent GBP50m in the UK since 2020, including the introduction of the GBP25m McCain Potato Farmer Pledge. McCain has committed to a 31% contract indexation in 2023, which is the equivalent of a GBP35m investment, as part of its ongoing assistance for farmers in the face of rising inflation. This support is in addition to the relationship with NatWest.

At its 'farms of the future' projects in McCain's hometown of Florenceville, New Brunswick, Canada, and South Africa, the potato giant is also testing regenerative agriculture practices and trialing new technology.