Sainsbury’s is taking a bold step to aid the dairy farming sector, investing £6 million for future sustainability.
- Amidst a challenging landscape, nearly 5% of dairy farmers exited the industry last year, with predictions of more departures by 2025.
- A comprehensive year-long review led to this investment, focusing on farmer payments for milk production.
- The majority of the funds, £4.3 million, is allocated to providing an extra 1p per litre above the current price model.
- An additional £1.7 million is designated for sustainability bonuses, encouraging carbon reduction and efficient farming practices.
Sainsbury’s has announced a strategic investment of £6 million aimed at enhancing the sustainability of its dairy farming partners. This initiative is a response to the current difficulties faced by the dairy sector, where last year saw the exit of almost 5% of dairy farmers. Moreover, projections indicate that one in ten dairy farmers may leave the industry by 2025.
In light of these challenges, Sainsbury’s has conducted a comprehensive review over the past year to assess the financial model it employs to pay its milk producers. Significant findings from this evaluation prompted the commitment of a substantial financial package.
Of the total investment, £4.3 million will be allocated to increase farmer remuneration by a fixed additional 1p per litre of milk. This payment is on top of the standard Cost of Production price, independently determined. For an average farm producing approximately 2.7 million litres of milk each year, this translates into an annual increase of £27,000 in income.
Additionally, £1.7 million of the investment is earmarked for sustainability bonuses. These bonuses are designed to reward farmers who contribute to Sainsbury’s carbon reduction goals and engage in sustainable farming practices such as the appropriate use of fertilisers and sourcing sustainable feed.
Over the past year, Sainsbury’s has already provided more than £66 million in support of British farmers, including increased payments for milk. Gavin Hodgson, Sainsbury’s Director of Agriculture, Aquaculture, and Horticulture, commented on the initiative, stating, “The dairy farming industry is becoming increasingly challenging, and we recognise the responsibility we have as a retailer to support farmers and the need for continuous investment in this sector.”
Sainsbury’s strategic investment underscores its commitment to sustainable farming and securing a dependable supply of British milk for the future.
