Published:13 March 2020

Farmers, local foodmakers and many more small businesses will be paid early to support them as they deal with the impact of Coronavirus

Morrisons is to move to immediate payments[1]  for its smaller suppliers[2] to help them during the ongoing coronavirus pandemic.[3]

The faster payments will support their cashflow during a difficult time for the British economy.

Morrisons is also temporarily re-classifying a smaller supplier from those with £100,000 of business-a-year with the company to those with £1 million of business. This will mean that an extra 1,000 small food businesses will qualify for these new payment terms.

The move will help businesses that provide up to £1m of turnover with Morrisons, including suppliers of local food and farmers that deal direct with Morrisons, such as those providing eggs and livestock. 

David Potts, Chief Executive of Morrisons, said: “We are Britain’s biggest single foodmaker and we want to be there for the smaller foodmakers, farmers and businesses that supply Morrisons. We’re a British family business and we will be doing our best to support them through this challenging period.”

Environment Secretary George Eustice said: “These measures will support our farmers and food producers in their vital work of feeding the nation.

“We already have a highly-resilient food supply chain in this country and I am continuing to work closely with Morrisons and other retailers on their response to coronavirus. The government has pledged £30 billion in this year’s Budget for those affected and we’ve been clear that we will do whatever it takes to support people and businesses.”

Morrisons has around 3,000 small suppliers including 1,750 farmers that will benefit.

Morrisons will start the temporary payment terms next week and it is expected they will last until the end of May before being reviewed.

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For further information please contact the Morrisons press office on 0845 611 5111.


●        Morrisons is writing to suppliers to inform them of the changes

●        Morrisons’ suppliers can receive further information on our helpdesk number 0800 015 2600

●        To benefit a supplier must:

o   be a goods for resale supplier;

o   have a turnover with Morrisons on goods for resale during Morrisons last financial year, of £1 million  or less excluding VAT;


[1] Morrisons will start to process payments immediately with the aim of releasing payment to the banks within 48 hours.
[2] Applies to Goods for Resale suppliers
[3] For a temporary period, all goods for resale suppliers in these groups will be paid as soon as their invoice is received and their payment will be fed into the banking payments system. Currently the smallest food manufacturers are on 14 day payment terms.