Tesco is relaunching and extending its Sustainable Pig Group (SPG) to show further support for British farmers and suppliers.

The group, developed in partnership with the supermarket’s long-term supplier Cranswick, will cover all production methods used in the UK and include farms of varying sizes.

Tesco estimates the group could be worth at least £670m over the initial three years of the scheme.

The group will initially produce all Tesco’s Finest fresh pork, with the ambition of tripling in size over the next three years to produce all the grocer’s core fresh pork and sausages, making it one of the largest farming producer groups in the UK.

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Farmers will receive a combination of cost of production and market price plus incentives, giving producers greater stability in pricing, and help to support longer term investment.

Among the incentivised improvements in animal welfare will be a drive to increase the number of farms with enhanced farrowing and decreasing stocking densities on farms across the Tesco SPG.

It comes after 18 months of continued support for the industry, in which time the supermarket increased the tonnage of British pork used in its sausages, bacon, pork and gammon by 20%.

It marks one of a number of sustainable farming groups operated by Tesco across several supply chains, including milk, cheese, beef, lamb and potatoes.

Tesco chief commercial officer Ashwin Prasad said: “Our dedicated British farmers have faced some challenging times recently, and we’ve been doing everything we can to support them.

“Our sustainable farming groups play a vital role, providing forums for collaboration and innovation, as well as encouraging improvements in product quality, animal welfare and environmental measures.

“Our new cost of production mechanism and bonus incentives will provide real benefits to farmers who will be able to invest in key welfare, sustainability and efficiency improvements.”