NFU President Peter Kendall has welcomed the move by Walkers Snackfoods, which is a reaction to customer comments on the sourcing of its ingredients.
Reducing the company's food miles and carbon footprint was also part of the decision.
Peter Kendall said: "Walkers have worked with British growers for many years but this move shows a real commitment to British and provides growers with the reassurance they require in this highly- competitive sector of the industry.
"The NFU is delighted that Walkers have made a public acknowledgement of the high quality and production standards that are achieved by British growers and the positive contribution that British farmers and growers can have on environmental issues."
Walkers' celebration of the British potato will be supported by a £7.5m marketing programme across the UK from August.