Sainsbury’s has announced a major long-term arrangements (Image: Getty)
Sainsbury’s is embarking on a major £5billion deal that it says will secure key products, like milk, carrots, mushrooms and chicken. The nation’s second-largest supermarket is expanding a long‑term partnership model with farmers in the UK and the Republic of Ireland, which, it says, will create “one of the most extensive networks of multi-year farming agreements” in Britain. The pact will see 3.1million tonnes of Sainsbury’s own-brand fresh products come from long-term contracts, the firm said.
By the end of 2026, 60% of products in fresh produce, dairy, meat, fish and poultry will be in long-term agreements of over five years, it added.
“As farmers are facing increasing global volatility and climate challenges, long-term partnerships provide the certainty and reassurance to invest in the future,” Sainsbury’s said.
By 2027, more than 2,500 farms – all British – will be backed, it is thought. Bosses believe that the plan will “ensure stability and resilience across the supply chain at a time when operating costs, climate pressures and global instability continue to impact farmers”.
Sainsbury’s has made a deal with UK farms (Image: Getty)
It comes as British farmers have expressed concern for the sector amid economic uncertainty, shifting government policies, and climate change.
In November, a McCain survey found that 74% of British farmers were pessimistic about farming’s future, 61% said their work negatively impacted their mental health and 36% worked over 70 hours per week during peak seasons.
Moreover, 68% saw technology investment as critical, and 71% had adopted sustainable practices.
Sainsbury’s emphasised that soft fruit has typically relied on short-term, seasonal agreements.
“These new long-term partnerships will give growers the security they need to invest in their future, including in sustainability and innovation,” the supermarket said.
The company’s chief executive, Simon Roberts, said: “In turn, this will help secure the future of British berries and ensure customers can continue to enjoy great tasting, responsibly sourced fruit.”
“Good food is something people depend on every day. In uncertain times our focus is on keeping food great value for customers while giving farmers the reassurance and certainty they need to plan ahead.
“We’re proud to lead the way on long term farming partnerships and cost of production models – with some of the longest in UK retail, backed by billions of pounds of committed investment. When farmers know what we’ll buy, at what price and for how long, they can plan, invest and keep producing the great tasting, responsibly sourced British food our customers trust.
“By expanding these long-term agreements across more of our meat, dairy, fruit and veg, we’re backing British and Irish farming for the future and bringing more homegrown food to our customers. This is how we protect quality, value and provenance in an uncertain world and how we help secure the future of good food for all of us.”