M&S unveils £2.1bn deal as supermarkets race to back British farmers

Marks & Spencer has committed £2.1 billion to British livestock farming, locking in decade-long supply deals to give producers greater security at a time of mounting pressure on the sector.

The retailer has signed 10-year agreements with ABP and Dunbia, securing year-round British lamb and beef supply while backing 3,500 M&S Select Farms. The move comes as farmers grapple with rising costs, squeezed margins and growing global competition.

For producers, the scale and length of the agreements mark a significant shift towards stability.

Trevor, an M&S Select beef farmer, said: “A decade long agreement sends a strong message in support of British farmers: Long term stability is essential if we’re going to keep improving our businesses and planning for the next generation.”

The deal also secures supply for premium ranges including Wagyu Gold, Aberdeen Angus Gold and organic lines, as demand for high-quality British beef continues to grow.

M&S said its Aberdeen Angus Gold standard, developed with farmers through a “science-led breeding programme”, combines high welfare with lower carbon emissions than conventional beef.

The agreements reinforce the retailer’s focus on sourcing British produce across its supply chain.

Alex Freudmann, managing director of M&S Food, said farmers are central to maintaining quality and standards. He said: “M&S Food offers the best quality at great value, and it’s our British farmers who uphold our market-leading welfare standards.”

He added that the sector is under increasing strain and “now more than ever need UK retailers to commit to sourcing from within the UK”.

The long-term nature of the agreements is expected to drive further investment across the supply chain.

Dunbia plans to introduce new salt drying chambers dedicated to M&S products. ABP will upgrade facilities with “state of the art equipment” to improve cutting, packing and production efficiency.

Michael Doran, managing director of Dunbia, said the partnership “represents a significant milestone” and strengthens support for “the network of dedicated British farmers who are central to our supply chain”.

He said their “high welfare standards, and commitment to sustainable farming underpin everything we do”.

Kevin Cahill, chief executive of ABP UK, said the renewed deal reflects the strength of the long-standing relationship and “is testament to our product quality and commitment to customer service”.

He added the agreement would help drive future investment while providing “greater security for our farmer suppliers in the years ahead”.

The £2.1bn commitment forms part of M&S’s Plan A for Farming strategy to 2030, focused on British sourcing, sustainability and resilience.

The move comes amid a wider push by major retailers to strengthen ties with British agriculture.

Sainsbury’s recently announced a £5 billion investment into British and Irish farming, expanding long-term contracts to more than 2,500 farms by 2027. The plans cover fresh produce, dairy, meat and poultry, securing around 3.1 million tonnes of own-brand food.

The investment reflects growing pressure across the sector. Government figures show just 33% of farmers feel positive about their future, underlining concerns over rising costs, policy changes and climate challenges.