Sainsbury’s, one of Britain's biggest milk retailers, has announced that it has confirmed its milk processor contracts for a further three years to 2017, as it strengthens its British milk supply chain and marks another step towards its wider British sourcing commitments to double the amount of British food sold by 2020.
This builds on the work undertaken over the last six years by the Sainsbury’s Dairy Development Group (SDDG), which was set up in 2006 to help Sainsbury’s dairy farmers to improve efficiency and animal health and welfare, and reduce their impact on the environment. Since its inception, Sainsbury's farmers have saved over £10 million, whilst Sainsbury's has invested over £40 million in developing these relationships.
In May 2012, following an overwhelming majority vote from farmers, Sainsbury’s introduced a unique cost of production model which rewards SDDG farmers for outstanding animal welfare and environmental standards. The model also commits to review key input costs for our farmers every quarter to ensure the price paid reflects these costs.
Justin King, Sainsbury's Chief Executive said: "We are committed to our dedicated British dairy farmers and building robust, sustainable supply chains and today’s announcement is a further example of this. This is great news for our farmers and processors and is testimony to the incredibly close relationships we've built over the past six years through our industry-leading Dairy Development Group. We've invested £40 million and seen significant advances in animal welfare and environmental standards, in turn saving our dairy farmers over £10 million.
“Our vision is to build strong relationships throughout our supply chain, ensuring a fair price for our farmers, good relationships with our processors and an assurance to our customers who want retailers to do the right thing on their behalf.”
By 2020, Sainsbury's will source all of its key raw materials and commodities sustainably to an independent standard
By 2020 Sainsbury’s will double the amount of British food it sells
Sainsbury's has supported British farming for over 140 years and we continue to work collaboratively with all parts of our supply chain. In 2006 Sainsbury’s launched the Sainsbury's Dairy Development Group. Sainsbury's now also has farmer Development Groups across ten areas, including Pork, Beef, Lamb, Cheese and Wheat
The current price of our Cost of Production model, paid to farmers of Wales, England, Scotland and is set at 31.59ppl, with the model having been implemented from 1st May 2012, following a vote by farmers
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