Sainsbury’s gives an extra penny per litre – straight into farmers pockets

Sainsbury's announces today it's continued commitment to the UK dairy industry – and raises the farm gate price it pays to farmers by one pence per litre.

Milk farmers will receive the extra cash immediately, but with no extra demands being made upon them. This is part of an annualised investment of £20m into the liquid milk business.

Justin King, Sainsbury's Chief Executive, said: "370 farmers in Sainsbury's Dairy Development Group will receive an extra penny per litre which they'll benefit from immediately, with no extra complication.

This change is a direct result of Sainsbury's listening to the Dairy Development Group members and forging close relationships with farmers."

Gwyn Jones, NFU Dairy Board Chairman said:

"By delivering immediate financial support to farmers, they have demonstrated they are serious about supporting farmers and paying fair prices. This is a direct result of really listening to farmers through the Sainsbury's Dairy Development Group."

David Hanley from Farmers for Action said: "Farmers for Action welcome Sainsbury's move. It clearly shows we have a retailer who is prepared to listen to the current worries of Dairy Farmers and that this should be a message to all other retailers and they should take a lead from it."

Sainsbury's also announces that 260 cheese producers are to join Sainsbury's Dairy Development Group, this follows it's announcement that it is the only supermarket to insist that Cheddar and all it's territorial cheeses, such as Red Leicester, Double Gloucester, Lancashire, Cheshire must be produced by milk from their respective regions.

Suggested by the Sainsbury's Dairy Development Group members - the new initiatives include multi-million pound investments and support from Sainsbury's.

Sainsbury's pledges to help farmers plan their long-term environmental impact through carbon footprint audits. In addition there will be support for animal welfare – and the retailer will employ independent consultants to give farm support and advise on herd health and animal husbandry.

Sainsbury's launched it's IT support scheme called Farm Connections at the Oxford Farming Conference in January 2007, giving beef farmers computers and IT training to enable them to compete in the market, and be informed of industry matters and production costs. This scheme has now been extended nationwide to dairy farmers, and beef farmers in Scotland.

In addition – farmers will benefit from the collaborative buying power of Sainsbury's and receive utilities such as electricity at a discounted rate.

This is the second milk price rise that the supermarket has announced this year - Sainsbury's announced a 1.3 pence increase in March 2007.

Over the coming months Sainsbury's will continue to work with the Sainsbury's Dairy Development Group to deliver real, tangible benefits by focusing on a number of areas in order to continue to raise farmer profitability, ensure sustainability of supply whilst reducing the environmental impact of the group.