Tesco is calling on retailers, industry players and innovators to work together to accelerate the adoption of low-carbon fertilisers, positioning the shift as critical to strengthening UK food security and stabilising farm economics.
Speaking at London Tech Week, UK CEO Ashwin Prasad said innovations such as domestically produced low-carbon fertilisers could help farmers reduce emissions while also improving resilience to volatile global supply chains.
However, he warned that too many technologies remain stuck at pilot stage, highlighting the need for more coordinated efforts to bring innovation onto farms at scale.
“We want to support our British farmers in rolling out innovation – it can help increase economic growth, build resilience and improve efficiencies on farm,” he said.
Supply shocks and price volatility driving urgency
Tesco’s intervention comes amid renewed disruption in global fertiliser markets, where supply chain instability and price spikes continue to create uncertainty for growers.
Low-carbon fertilisers – many of which can be produced domestically – are increasingly being positioned as a more stable alternative to conventional inputs. In recent months, rising prices for traditional fertilisers have also narrowed the cost gap, improving the economic case for adoption.
Yet despite offering comparable yields with lower environmental impact, uptake remains limited.
Farmers cite limited availability at scale, uncertainty over long-term pricing and lack of funding to support on-farm trials.
As a result, many remain hesitant to shift away from established fertiliser systems.
From pilot projects to real-world impact
Tesco points to early evidence from its Low Carbon Concept Farm in Lincolnshire as proof that the technologies can deliver.
Working with supplier Branston, trials combining low-carbon fertilisers and CO₂-locking production techniques delivered a 50% reduction in carbon emissions, with no impact on yield or quality. Around 500 tonnes of potatoes from the project have already been sold in Tesco stores.
The retailer is now urging the wider industry to build on these results by expanding supply and enabling technologies to move beyond niche deployment.
“Low-carbon fertilisers are a clear example,” Prasad said. “They have real potential… but scaling them will require greater availability, clarity on price and the confidence that farmers can plan their use over the long term.”
A familiar bottleneck: scaling agtech innovation
Tesco’s call echoes a broader structural challenge across UK agtech: the gap between innovation and large-scale adoption.
As previously reported by AgNavigator, the UK continues to lag in turning promising technologies into commercially viable solutions on farms, with SMEs in particular struggling to scale without clearer routes to market and sustained buyer support.
By stepping in as both a major buyer and innovation partner, Tesco is positioning itself as a potential bridge – connecting startups, suppliers and farmers to accelerate deployment.
Agri-tech Challenge returns with focus on resilience
The push on fertilisers is also tied to Tesco’s wider innovation strategy, including the relaunch of its 2026 Agri-tech Challenge.
The competition aims to fast-track technologies that can “future-proof” British farming against environmental, economic and operational pressures.
Start-ups and innovators selected through the programme gain access to trials on commercial supplier farms, collaboration with Tesco and its supply chain partners and a potential route to market through one of the UK’s largest retailers
For Tesco, the initiative – and its focus on areas such as fertilisers, resource efficiency and resilience – reflects a growing recognition that innovation alone is not enough without clear pathways to adoption.
