Dairy farmers supplying Sainsbury's with milk will be paid more from next month as part of a £6m investment made by the retailer annually.
£4.3m of the new investment will go towards giving farmers an additional fixed 1p per litre for milk, the retailer today (5 September) confirmed.
Alongside this, £1.7m will go toward sustainability bonuses, with farmers to be rewarded for helping the supermarket chain achieve its 'plan for better' targets, specifically carbon reduction.
Gavin Hodgson, director of agriculture at Sainsbury’s, said the dairy farming industry was becoming 'increasingly challenging'.
"We recognise the responsibility we have as a retailer to support farmers and the need for continuous investment in this sector," he added.
“We are proud of our continued investment into the Sainsbury’s Dairy Development Group and are confident our £6m annual investment will help farmers to plan for a long-term and sustainable future.
"In turn, we hope this will also provide surety of supply for our customers as we continue to champion British milk now and for the future.”
This latest investment in dairy, which comes into effect from 1 October, is on top of an £8.9m booster payment given to Sainsbury's 260 dairy farmers in April 2022.
It comes after the dairy sector warned of a 'tough winter ahead' as the gap between farmgate milk and retail prices, as well as high input costs, continues to add significant financial pressure.
The NFU recently warned that nearly one in 10 dairy farmers are likely to stop producing milk by 2025.