The total amount Lidl spends annually sourcing food from local suppliers has doubled in the past three years to £80m, according to Lidl Ireland commercial director Liam Casey.

Speaking at the agriculture and rural development committee at Stormont on Tuesday, Casey told MLAs that sourcing local food was something that Lidl did not do well enough in the past. However, he said that there is increased consumer demand for local produce in its 38 stores in NI.

The discount supermarket chain buys from 60 NI suppliers, with contracts put out to tender and generally run for six to 12 months. “At the very top is the product, the quality of it and the ability of the supplier to produce the volumes that we need. It is not the lowest price that wins. We see no benefit in a race to the bottom,” said Casey.

According to Lidl buying executive Brendan Conway, negotiations for renewing contracts start six to eight weeks before the end of the six-month contracts and three months before year-long contracts end. They agree a price with a supplier and honour it for the full duration of the contract, he claimed.

Products in more volatile markets generally have shorter six-month contracts as their value can change over the course of the agreement.

Approximately 30% of fresh food in Lidl stores here is NI origin with all beef, chicken, pork, milk and lamb coming from NI farms. Local suppliers include Dunbia (pork), ABP (beef) and Strathroy Dairies (milk).