Sainsbury’s Commits £5bn To Long-Term Farming Partnerships In Major Supply Chain Boost

Sainsbury's has unveiled a £5bn multi-year investment to expand long-term partnerships with more than 2,500 British and Irish farms, in a move designed to strengthen supply chain resilience and support future food production.

The retailer said the expanded programme will see long-term agreements underpin the supply of 3.1 million tonnes of its own-brand fresh food by 2027, spanning key categories including fresh produce, dairy, meat and poultry.

By the end of 2026, Sainsbury’s expects 60% of its own-brand suppliers across fresh produce, dairy, meat, fish and poultry to be covered by agreements lasting more than five years, marking a significant shift towards longer-term contracting models.

The initiative includes new five-year agreements with 62 British berry farms, involving growers such as Angus Soft Fruit, Chambers, Soft Fruits Direct, J.O. Sims and Dyson Farming. The move represents a notable departure from the short-term, seasonal arrangements that have traditionally dominated the soft fruit sector.

Sainsbury’s said the strengthened partnerships are intended to provide farmers with greater certainty at a time of rising input costs, climate pressures and global volatility. The retailer argues that longer-term agreements will enable producers to invest in sustainability, innovation and future capacity, while helping to secure consistent supplies of British-grown food.

Chief executive Simon Roberts said the strategy builds on nearly two decades of collaboration with farmers, including cost-of-production pricing models first introduced in the dairy sector in 2007.

He added that providing clarity over “what we’ll buy, at what price and for how long” allows farmers to plan ahead, invest with confidence and continue delivering high-quality, responsibly sourced food for customers.

The announcement comes amid ongoing concerns about farmer confidence, with government research indicating that only around a third of farmers currently feel positive about the future.

Sainsbury’s said its expanded network of long-term agreements—one of the largest of its kind in the UK—aims to address these challenges by creating a more stable and resilient food system, while increasing the volume of homegrown produce available to consumers.