James Bailey: Supporting our dairy farmers
At the beginning of the year we posted about difficulties being faced by parts of the British dairy industry. Media coverage of milk pricing this month has highlighted that these challenges remain an important topic.
However, when it comes to milk pricing, not all retailers are equal. Customers can choose to buy their milk from a retailer that guarantees a fair price to its British milk producers.
At Sainsbury’s, we have been supporting our British milk farmers for nearly ten years through the Sainsbury’s Dairy Development Group (SDDG), who supply our own-brand milk. We pay our dedicated milk farmers a fair price via our unique Cost of Production (COP) model.
The COP model directly reflects our farmers’ costs, building in a profit, as well as rewarding outstanding animal welfare and environmental standards. We review the price paid to farmers every three months to take into account changes in their key costs on the farm – feed, fuel and fertiliser.
While the grocery market is extremely competitive, our aim is always to provide our customers with great products at fair prices, but in a way that is also fair for farmers, animals, growers and our suppliers.
By working in partnership in this way, we and our dairy farmers benefit from a longer-term relationship based on greater certainty for all, allowing both parties to invest with confidence in the future of the industry.
So Sainsbury’s customers can rest assured that we are supporting British milk farmers on their behalf.