Chipotle Mexican Grill, well known for strict supply-chain standards that have sometimes limited the availability of certain menu items, announced an initiative Wednesday to offer financial support to young farmers.
The Newport Beach, Calif.-based fast-casual chain will offer three-year contracts for farmers under 40 years old who meet the chain’s “food with integrity” standards. The program begins with beef, pork and dairy producers, the company said, noting that the average age of U.S. farmers is 58 and more than half of all farmers lost money last year.
Chipotle also vowed to increase its local sourcing in 2020 and said it would fund seed grants to support young farmers, staring with a Farmer Friday event this week in which a dollar from every entree purchased via the chain’s app or website will go toward the grants.
“Farmers committed to farming in a sustainable and ethical way need help to have a chance to succeed—both for the sake of the future of real nutritious food and the communities that rely on those farms,” Chipotle CEO Brian Niccol said in a statement.
Earlier this year, Chipotle announced it would have to curtail its popular carne asada LTO because it couldn’t source enough beef that met its brand standards. Last month, the chain said it would be able to extend the item into the first quarter of 2020, and potentially add it to the permanent menu, after finding a new source for the protein.
The LTO’s popularity helped propel Chipotle to an 11% jump in same-store sales for the third quarter.
"Chipotle is using their Food with Integrity platform to tell the American public about the crisis in agriculture and the challenges that young farmers face," said Chris Oliviero, general manager of Niman Ranch, a longtime Chipotle supplier. "The public is demanding a purpose behind their purchases and the best companies are responding. Chipotle’s new 3-year purchase commitments to Niman Ranch young farmers provides much needed stability as they establish themselves."
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