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Sainsbury's Increase Payments to Pig Suppliers

by 5m Editor
20 May 2011, at 10:14am

UK - British supermarket chain Sainsbury's has reinforced its commitment to supporting British pig farmers by increasing the amount paid to its dedicated Pork Development Group, following soaring prices in the global wheat market.

Feed prices have more than doubled in the past two years, putting severe pressures on the cost of production. In response, Sainsbury's together with its suppliers will make a discretionary payment of an additional 5p per kilo until 1 August 2011, or until the Deadweight Average Pig Price (DAPP) stabilises to £1.50 per kilo. All Sainsbury's fresh British pork is sourced from Development Group Farms.

Siobhan Barnes, Senior Buyer Pork, Sausage & Bacon has written to the pig producers based across England, Northern Ireland and Scotland in the Development Group to confirm the increase.

Commenting on the move, Simon Twigger, Director of Fresh and Frozen Foods at Sainsbury's, said: "This extra support demonstrates that we work closely with our producers and are keen to address the issues with them.

"We are committed to a sustainable pig industry in the UK which is why we regularly listen to feedback from our farmers at the Sainsbury's Pork Development Group - an excellent forum to keep in touch with the issues that matter to our British suppliers. It has become clear that current prices for feed are putting real pressure on our Development Group Farmers so we have taken the right action today and will keep this under review.

"I believe Sainsbury's stands out from the other major supermarkets in the way we have developed relationships with our producers and support British farming. Our Development Groups help us stay in touch with our suppliers and we are committed to Sourcing with Integrity, which is why all of our fresh ham and sausages are 100 per cent British and we are the largest retailer or Freedom Food products in the UK."

Derek Hall, a Sainsbury's Development Group farmer, said: "We welcome the price increase. At a time when we are facing unprecedented cost increases particularly in animal feed this is great news that Sainsbury's have recognised that its farmers cannot absorb these costs and remain sustainable".