Red Tractor is a small not for profit company who’s funding comes from a variety of sources.
Food Businesses – they pay to use the Red Tractor consumer logo on food they pack
Stakeholders – organisations like AHDB provide funding for specific projects.
Royalty Fee – a small proportion of the annual fee, known as the royalty, assured members pay to certification bodies is passed back to Red Tractor.
The split between the fees Red Tractor receives from food businesses (licensees) and farmer members is about 50:50.
Licensee fees pays for the marketing activity
Farmers fees pays for the management of the scheme
Our members can be assured that managing our very limited budget effectively and efficiently is a priority and any decisions to increase royalties are only made after considerable thought and to ensure we can continue to provide members with services, benefits and carry out the vital marketing and communication activities they expect us to do.