To cut costs and decrease waste, Tesco suppliers will use an online swap shop.

December 1, 2022

To cut costs and decrease waste, Tesco suppliers will use an online swap shop.

By offering extra stock or products to other suppliers who can use them, more than 3,500 Tesco suppliers can now cut production costs and waste.

Tesco Exchange is a new online marketplace that connects suppliers who have surplus of a product with other Tesco suppliers who are in need of it, such as crops, byproducts, ingredients, or packaging. It is anticipated that lower production costs will eventually benefit customers as well.

Similar to how consumer marketplaces operate, Tesco Exchange allows suppliers to post requests for items they need, advertise excess stock for sale, and negotiate sales among themselves. Additionally, they can set alerts for when certain items are posted.

In the food supply chain, excess or waste can happen for a variety of reasons. For instance, prolonged periods of favorable weather can sometimes leave growers with more produce than they can consume. Additionally, food producers frequently produce by-products that can be used by others.

Food manufacturer G’s Group, which provides pickled beetroot to Tesco, created one of the first listings. They end up with tons of beetroot peelings after the manufacturing process, which a livestock farm could use as cattle feed.

Tesco and WWF’s recent report on on-farm food loss has highlighted the opportunity for the Tesco Exchange platform. According to the study, more than three million tonnes of food waste in the UK alone spoil before they can be disposed of on farms.

To cut costs and decrease waste, Tesco suppliers will use an online swap shop.

“Excess stock or waste for one supplier could be a valuable commodity to another,” said Sarah Bradbury, director of quality at Tesco. By connecting various farmers, producers, and manufacturers, our suppliers can discover new ways to cut their expenses, minimize waste, and continue providing excellent value for our customers.

Tesco Exchange is a great example of a project that the food industry needs to embrace and support in order to directly address commitments on food waste, the circular economy, and move toward more sustainable and resilient supply chains, says Dr. Julian Parfitt, Technical Director at Anthesis, the sustainability activator and developer of Tesco Exchange.

This is the most recent initiative in a Tesco-led program to assist its suppliers in reducing waste. It has directly collaborated with 107 of its international suppliers, resulting in a 78,000-ton reduction in food loss and waste overall. By 2025, it wants to cut its operational food waste in half, and by 2050, it wants to have zero waste throughout the entire value chain.

For more information on Tesco’s progress to date please visit: