A UK supermarket has reviewed the amount of money it pays farmers who provide it with dairy goods.
Sainsbury’s revealed that following the evaluation, it is setting a new price through the sustainable Cost of Production (COP) model, which means the standard amount handed over to agricultural professionals now stands at 31.59 pence per litre (ppl).
This represents a marked rise on the previous level of 30.66 ppl and has been set to reward farmers in the supermarket’s Dairy Development Group, who were praised for their achievements with regard to animal welfare and environmental standards.
In addition, these workers were heralded for their sustainability success throughout the whole supply chain.
The COP is reviewed on a quarterly basis, with a number of factors taken into account, such as feed, fuel and fertiliser.
Sainsbury’s – which has supported British farming for 140 years – explained this approach ensures every three months will see the most volatile elements of cost assessed, with the COP milk price set to be altered in order to reflect these developments.
As such, it is hoped farmers will continue to benefit from fair deals when selling to the supermarket.
