Sainsbury’s expands long-term farmer and grower agreements with £5bn investment commitment

Sainsbury’s has announced a significant expansion of its long-term partnership model, committing £5 billion to invest in fresh produce, dairy, meat, and poultry sectors. This move aims to secure long-term agreements with 60% of its own-brand suppliers in these sectors by the end of 2026, supported by more than 2,500 British farms. By 2027, the retail giant plans to back over 2,500 farms—all 100% British—through long-term contracts, representing over £5 billion of committed investment and securing 3.1 million tonnes of homegrown fresh food.

The expanded model will ensure a stable supply chain for key products such as milk, carrots, mushrooms, and chicken. In a time when rising operating costs, climate pressures, and global instability are challenging farmers, these long-term agreements will provide the necessary stability and resilience. Traditionally, soft fruit has relied on short-term, seasonal agreements, but the new partnerships will give growers the security to invest in their future, including sustainability and innovation. This will help secure the future of British berries and ensure customers can continue to enjoy great-tasting, responsibly sourced fruit.

Sainsbury’s highlighted the need for support in the agricultural sector, citing research from the Department for Environment, Food and Rural Affairs (DEFRA) that only 33% of farmers feel positive about their future, a trend that has been downward. The retailer's long-term approach aims to reverse this by providing stability, shared planning, and the backing farmers need to thrive.

NFU president Tom Bradshaw emphasized the importance of building resilience into farming and growing businesses, particularly in the context of fairness in the supply chain. He noted that long-term contracts like these provide farmers and growers with the certainty needed to invest in on-farm infrastructure for the future. Such investments benefit growth, productivity, and sustainability.

Sainsbury’s chief executive, Simon Roberts, reiterated the retailer's commitment to supporting British farmers and growers. By investing in long-term agreements, the company is not only ensuring a stable supply of fresh, homegrown produce but also fostering a resilient agricultural sector that can withstand future challenges. This investment underscores Sainsbury’s dedication to supporting the farmers who provide the fresh ingredients that customers expect from the retailer's own-brand products.

In conclusion, Sainsbury’s £5 billion investment commitment to long-term farmer and grower agreements represents a significant step towards securing a resilient and sustainable future for the British agricultural sector. By supporting over 2,500 British farms and securing 3.1 million tonnes of homegrown fresh food, the retailer is not only ensuring a stable supply chain but also providing farmers with the security they need to invest in their future. This move is expected to have a positive impact on the sector's stability, productivity, and sustainability, ultimately benefiting both farmers and consumers.