Sainsbury’s confirms new £5bn deal – impacts milk, carrots and chicken | UK | News

Sainsbury’s is embarking on a major £5bn deal it says will secure staples such as milk, carrots, mushrooms and chicken. The country’s second-largest supermarket is expanding a long-term partnership model with farmers in the UK and Republic of Ireland, which it says will create “one of the most comprehensive networks of multi-annual farming agreements” in Britain. Under the agreement, the firm anticipates that 3.1 million tonnes of Sainsbury’s own-brand fresh produce will come from long-term contracts.

He added that by the end of 2026, 60% of fresh produce, dairy, meat, fish and poultry products will be supplied through long-term agreements of more than five years.

“As farmers face increasing global variability and climate challenges, long-term partnerships provide certainty and security to invest in the future,” Sainsbury’s said.

It is thought that more than 2,500 farms, all British, will be supported by 2027. Bosses believe the plan will “deliver stability and resilience in the supply chain at a time when operating costs, climate pressures and global instability continue to impact farmers”.

It comes as British farmers voice concerns about the sector due to economic uncertainty, changing government policies and climate change.

one in november McCain investigation It found that 74% of British farmers are pessimistic about the future of farming, 61% say their work negatively affects their mental health and 36% work more than 70 hours a week during peak seasons.

Additionally, 68% view technology investment as critical and 71% adopt sustainable practices.

Sainsbury’s highlighted that soft fruit is often based on short-term, seasonal deals.

“These new long-term partnerships will give growers the security they need to invest in their future, including sustainability and innovation,” the supermarket said.

Simon Roberts, the company’s chief executive, said: “This will help secure the future of British fruit and ensure customers can continue to enjoy great-tasting, responsibly sourced fruit.”

“Good food is something people rely on every day. In uncertain times, our focus is on protecting the great value of food to our customers, while giving farmers the reassurance and certainty they need to plan ahead.

“We’re proud to be pioneering long-term farming partnerships and production cost models – some of the longest in UK retail, backed by billions of pounds of committed investment. When farmers know what to buy, at what price and for how long, they can plan, invest and continue to produce the great-tasting, responsibly sourced British food our customers trust.

“By extending these long-term agreements to more of our meat, dairy, fruit and vegetable products, we are supporting British and Irish farming for the future and providing more homegrown food to our customers. This is how we protect quality, value and provenance in an uncertain world and help secure the future of good food for us all.”