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Tesco pledges to build on its circular economy model

Building on the success of its Northamptonshire facility, where surplus bakery and produce are turned into animal feed, Tesco is expanding its food waste efforts as part of the circular economy.

The Northamptonshire facility followed on from a temporary processing plant in Daventry, which was used as a testing site. The facility can now handle up to 1,000 tonnes of surplus food per week, 40% of which will come from Tesco’s own operations.

This development forms a key part of Tesco’s broader commitment to the circular economy, as detailed in its 2025 Sustainability Report. With a longstanding focus on food waste prevention, redistribution, and energy recovery, the UK’s largest supermarket is now enhancing its infrastructure to ensure that even surplus food not suitable for human consumption is used productively.

For decision-makers in the food and beverage industry, the implications are significant. Tesco’s investment signals a growing emphasis on end-to-end food waste management – and a potential shift in how surplus is handled across the supply chain.

The facility will not only handle Tesco’s own stock but has been designed with capacity to accept surplus from other retailers and manufacturers as well. This opens the door to third-party collaboration and could set a precedent for industry-wide shared infrastructure to divert waste from landfill and anaerobic digestion.

Supporting the food waste hierarchy

A spokesperson from The Waste and Resources Action Programme (WRAP), commenting on the move, told this publication: “WRAP is supportive of Tesco making this investment to provide a route to divert surplus food that is unfit for redistribution to people away from anaerobic digestion.” The spokesperson added that WRAP had not advised Tesco on this initiative.

The operation will focus on turning bakery and fresh produce surplus into animal feed, while a separate process will see meat and fish waste transformed into pet food. Tesco confirmed that only food that cannot be redistributed to people will be processed at the site, in line with WRAP’s food waste hierarchy.

“Repurposing surplus food that cannot be used primarily to feed humans is a good step and follows the waste hierarchy,” the WRAP spokesperson added. “We know that Tesco has processes in place to ensure this route is only used for food that cannot be redistributed – this is referenced in Tesco’s sustainability report.”

Part of a larger sustainability drive

From a strategic standpoint, the new facility is part of Tesco’s ongoing effort to meet UN Sustainable Development Goal 12.3, which calls for halving food waste by 2030. The supermarket has set its own internal target of halving food waste in operations by December 2025, against a 2016/17 baseline – though it acknowledges it is unlikely to hit the full target on time.

Despite this, progress has been made. In 2024/25, Tesco reported a total of 102,684 tonnes of surplus food in the UK. Of that, 32,215 tonnes were redistributed to charities or via its Colleague Shop, while 82% of all unsold food fit for consumption was diverted to human or animal use.

For industry stakeholders, this signals the rising importance of building or partnering with infrastructure that prioritises circular outcomes. In addition to helping meet corporate ESG targets, surplus-to-feed systems can offer measurable reductions in waste disposal costs and potential reputational gains.

A broader role for retailers

WRAP believes this approach could mark a turning point for the role of retailers in shaping the circular economy.

“WRAP has joined with Tesco in calling for more action from more companies and governments in tackling food waste,” the spokesperson noted.

Tesco’s model combines internal data tracking, in-store food segregation, redistribution partnerships with organisations like FareShare and Olio, and now, dedicated surplus-to-feed processing – a full-spectrum strategy that could influence how food waste is tackled across the sector.