Sainsbury's today reinforces its commitment to supporting British dairy farmers following its announcement earlier in the year that it is investing £40 million in the industry during the next three years.  

The only retailer speaking at today's 'Mission Milk' conference, Sainsbury's Group Commercial Director, Mike Coupe, will report on the progress made by the retailer since the last NFU and WI conference over three years ago. This includes setting up its dedicated Dairy Development Group for farmers in 2007 in which the retailer has already invested £16 million to support its dairy producers.    

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Today, all 343 of Sainsbury's liquid milk producers are part of the Dairy Development Group, and one of the main aims of the group is to increase profitability for farmers who now receive a premium for their milk. The group also looks at reducing on-farm costs by improving efficiency, animal health and welfare, as well as helping farmers to reduce their impact on the environment.

Mike Coupe, Group Commercial Director, Sainsbury's, said: "We have come a long way with our dairy farmers in three years and are very proud of our progress. We all operated in a very different climate in 2007, before a recession hit and before our dedicated development groups were fully established. Today, every single one of our dairy farmers is linked through our development group which aims to deliver long term efficiency, profitability, and ultimately sustainability. Not all supermarkets are equal in their engagement with the farming community, and I believe Sainsbury's stands out in the way we have developed relationships with our farmers. This is why a month ago we held our first ever conference for 1,000 of our farmers from all agricultural sectors to ensure we can tackle the future supply chain challenges together and provide our farmers with a more efficient and profitable future."

Key progress made in the last three years

Herd Health & Husbandry

The scheme includes investment towards the largest privately funded herd health initiative of its kind to be undertaken on dairy farms in the UK. All farmers receive two fully funded vet visits per year, which provide them individual advice and support on how to improve the health and welfare of their herd. As a result of this initiative, significant improvements have been made including reduced lameness and mastitis, and improved fertility. In the last financial year, this has equated to an improvement in profitability of £1.6 million for our milk farmers.

Welfare Standard

In May 2010 Sainsbury's launched their dairy welfare standard in order to formalise the workings of the Herd Health Initiative. The standard is unique in that it is based on animal outcomes, so rather than dictating to farmers how to farm, the choice of farming system is left up to them provided they achieve the right outcome. The tolerances set for each of the ‘outcome measures' have been set using the herd health data collected over the last three years. The standard has received much praise from our farmers, local vets, RSPCA and CIWF.

Environment & Energy

In partnership with AB Sustain, Sainsbury's initiated the development of a carbon footprint tool. It was the first model to achieve PAS2050 Tier Three accreditation - a position that remains untouched. Individual on-farm assessments began in January 2008 and now into the third round of annual assessments. Results from Year One and Year Two data show a Group saving of 5,000 tonnes of carbon. The real benefit to farmers, however, has been the improved understanding of energy efficiencies on their farm and real cost savings.

Dairy Bull Calf scheme

The calf scheme serves to guarantee dairy development producers with a sustainable price of £1/kg for their black and white bull calves all year round. This year it has been extended to take calves from TB restricted farms, making us the first supply chain to pay a sustainable price for TB calves that matches the price for calves from farms clear of TB restrictions. The average price the scheme is paying for two weeks old calves from TB restricted farms is £54. Once finished, calves are supplied to Sainsbury's beef supplier, to help fulfill British beef requirements.

Cull Cow Scheme

Again, in collaboration with Sainsbury's beef supplier a cull cow scheme has been established, to take cows at the end of their productive life back into Sainsbury's beef supply chain. The cull cow scheme entitles Dairy Development Group farmers to a 20p/kg deadweight bonus for those animals that meet carcass and welfare criteria. 

Sainsbury's Cheese Development Group

In January 2010 Sainsbury's extended the Dairy Development Group initiative to its cheese supply chain. 98 farmers supplying milk to make Sainsbury's block cheddar are now members of the Sainsbury's Cheese Development Group, in partnership with Milk Link.

William Goodwin, Sainsbury's dairy farmer: "The Sainsbury's Dairy Development Group has undoubtedly made my farm more profitable, and if farmers are joining the group, it can only be a good thing for the dairy industry."

The Dairy Development Group model has been so successful that Sainsbury's has now rolled the model out across all of its key agricultural suppliers, and development groups now exist for milk, cheese, beef, lamb, pork, chicken, eggs, produce and grain producers.

Learn more about Sainsbury's Dairy Development Group in this video.