Lidl to roll out ‘industry-first’ tool for banana supply chain

Following its successful trial in Lidl Germany, where Lidl now exclusively offers bananas that ensure its premium has been paid, the new tool is due to be rolled out in September across Lidl GB’s entire banana supply chain.

According to the discount retailer, this is a first-of-its-kind mechanism which will enable suppliers to develop action plans to address wage disparities.  

The living wage gap is the difference between the actual monthly salary of the worker and the living wage benchmark, which is the minimum monthly salary a household requires for a decent standard of living in that region.

The tool collects and audits data on local living wages and actual wages paid to banana workers, calculating the premium which is to be paid by Lidl. Suppliers can then choose their preferred method of payment to workers, once this has been validated, for example increased salaries, bonuses or vouchers for local services.  

Lidl is sharing its learnings with producers and suppliers, whilst also giving fellow supermarkets access to the tool.

This news follows a joint commitment from nine UK retailers last year, including Lidl, to improve living wages in banana supply chains. This initiative saw the retailers agree to a 2027 goal of closing the gap completely. Lidl says it is on track to meet this ahead of target.

Commenting, Richard Bourns, chief commercial officer at Lidl GB, said: “We recognise the importance of addressing wage disparities within our supply chain. Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry. It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”​

In other news, research has found vertical farming could be 'greener than first thought'.​​