Sainsbury’s takes a pivotal step to bolster the future of dairy farming by investing £6 million to adjust payments to farmers and enhance sustainability practices.
- Nearly 5% of dairy farmers left the industry last year, with projections indicating that one in ten could exit by 2025, prompting Sainsbury’s to act.
- £4.3 million of the investment will allocate a fixed 1p per litre extra to farmers, based on current production costs.
- An additional £1.7 million will focus on sustainability bonuses, rewarding farmers for eco-friendly initiatives in line with Sainsbury’s goals.
- This initiative is part of Sainsbury’s long-term commitment, having provided over £66 million to support British farmers in the past year.
Sainsbury’s has announced a significant investment aimed at supporting the dairy farming industry, which has been facing considerable challenges. Almost 5% of dairy farmers have exited the field in the previous year, and projections indicate that up to 10% might leave by 2025. In response, Sainsbury’s has conducted a comprehensive year-long review, in collaboration with its Dairy Development Group, to reassess its compensation structure for farmers.
Out of the £6 million investment, £4.3 million is allocated to increase payments to farmers by an additional fixed 1p per litre on top of the existing Cost of Production price. This adjustment is substantial, given that an average farm produces approximately 2.7 million liters of milk annually. Consequently, this increase could translate to an approximate £27,000 annual boost per farm, providing a significant financial uplift to farmers.
Moreover, Sainsbury’s is dedicating £1.7 million to offer sustainability bonuses as a part of this investment. These bonuses will be given to farmers who contribute towards the grocer’s Plan for Better targets, particularly in carbon reduction efforts. This includes practices like using sustainably sourced feed and optimizing fertilizer use. Gavin Hodgson, Sainsbury’s director of agriculture, aquaculture, and horticulture, emphasized the importance of this initiative stating, “The dairy farming industry is becoming increasingly challenging, and we recognize the responsibility we have as a retailer to support farmers.”
Sainsbury’s has shown a longstanding commitment to strengthening the dairy sector, with over £66 million paid to British farmers in support over the past year alone. This new financial strategy is not only aimed at providing immediate financial relief but also ensuring the long-term sustainability and viability of dairy farms across the nation. By integrating these substantial funds into their operating model, the supermarket aims to secure a steady supply of dairy products while championing British milk.
Sainsbury’s £6 million investment underscores its dedication to a sustainable and prosperous future for dairy farming in the UK.
