Aldi has said that it will fast-track payments to over 200 of its Irish small and medium-sized food and drink suppliers.
Aldi said that this applies to all suppliers that transact up to €1 million worth of business annually with Aldi.
The retailer said that payments will be processed and paid in five days. Aldi took the decision on the back of the Covid-19 crisis.
The new payment terms will be effective immediately, and will remain in place throughout the Covid-19 crisis, “underlying the partnership approach Aldi had developed with its Irish supply base”.
“Over the last few weeks our suppliers have experienced unprecedented difficult circumstances. Their teams have worked around the clock to provide the products to keep our shelves stocked for customers, and we want to help them in return,” said John Curtain, Aldi Ireland’s group buying director.
“Our new shorter payment terms mean over 200 Aldi suppliers will have their invoices processed immediately and payment made within five days. This will greatly assist with their cash-flow requirements, and in turn, help them pay their farmers and suppliers along the chain on time,” Curtain added.
This is a hugely difficult time for Irish business and the food sector, and we need to keep supporting each other in any way we can.
Electronic payments from meat processors
Meanwhile, calls have been made for meat processors to initiate electronic payments to farmer cattle suppliers.
Des Morrison, the livestock chairperson of the Irish Creamery Milk Suppliers’ Association (ICMSA), said that such a system should be voluntary for farmers if they wish to avail of it, but that every processor should have the capacity to offer it.
Although Meat Industry Ireland (MII) has not confirmed any position on electronic payments, Morrison told AgriLand: “It’s not rocket science.”
The ICMSA livestock chairperson argued that electronic payments are even more important at the present time, given the restrictions associated with Covid-19, such as the need to maintain social distancing and reducing close contact with other people.