Sainsbury’s has elevated its annual funding in its dairy farmers by £6 million that means its suppliers will probably be paid extra for a litre of milk from subsequent month.

From October 1, farmers provide milk to Sainsbury’s will obtain an additional 1p/L on high of the independently calculated Price of Manufacturing worth of milk that the retailer has adopted since 2012

For a farm producing roughly 2.7 million litres this may equate to an additional £27,000/12 months.


This worth enhance follows a year-long evaluation by Sainsbury’s into the way it pays farmers for milk.

Alongside the worth enhance, £1.7 million of the entire £6 million funding can also be being dedicated for sustainability bonuses. Farmers will probably be rewarded for serving to Sainsbury’s to realize its Plan for Higher targets, particularly carbon discount, by way of actions reminiscent of utilizing sustainably sourced feed and utilizing the right amount of fertiliser, in the best method. 

The retailer hopes the elevated funding may also give farmers the “confidence and need” to put money into long-term infrastructure modifications to adjust to new laws.

“The dairy farming trade is turning into more and more difficult and we recognise the accountability we have now as a retailer to assist farmers and the necessity for steady funding on this sector,” Gavin Hodgson, director of agriculture, aquaculture and horticulture at Sainsbury’s, commented.

“We’re pleased with our continued funding into the Sainsbury’s Dairy Growth Group and are assured our £6 million annual funding will assist farmers to plan for a long-term and sustainable future.

“In flip, we hope this may also present surety of provide for our clients as we proceed to champion British milk now and for the long run.”