Save money on your milk and support British dairy farmers at Sainsbury's

With the recent price drops in milk across several major retailers it's understandable that there is concern over the welfare of dairy farmers. Some retailers are paying farmers below the cost of production for their milk which makes it tough for those farms to stay in business. Our customers expect our farmers to be paid a fair price and we think they should be too. This is why the price at which we sell the milk has always been independent of the price we pay the farmers for the milk.

Favoured by Farmers

We set up the Dairy Development Group in 2007 with over 290 farms and have been working with the same group of farmers ever since.

Through this group we developed a pricing model called the Cost of Production, one that was voted for by the farmers themselves that protects them against price cuts in the market. The National Famers Union lists Sainsbury's as a retailer supporting British dairy as this guaranteed, independently audited price enables our farmers to farm with confidence and stability.

"Through our Dairy Development Group (SDDG) we've proudly built up a relationship with our dairy farmers over the last seven years" - Sainsbury's Brand Director, Judith Batchelor.

A Fair Price

The Cost of Production pricing model makes sure that the price we pay for the milk reflects farmers' costs and isn't influenced by us at any level. As feed, fuel and fertiliser costs are the most volatile for a dairy farmer, every three months our pricing model responds to these increases and decreases to protect our farmers. These fluctuations are published monthly by DairyCo, an independent industry body, and then converted into a milk price using the transparent pricing model that our farmers voted for.

Actual financial data collected annually from our dairy farms by an independent dairy consultant feeds into the price changes. This all means that our farmers get a guaranteed price that takes into account their costs and is independent of the retail price of milk. On top of covering cost of production, the model includes a profit element as well as a bonus available to those farmers who consistently meet the high health, welfare and environmental standards we set for the group.

Hear from our dairy farmers directly

Meet Dairy Farmer James

Growing up on his family farm in Cheshire (a farm that has been in the family for over 100 years) James knows a thing or two about farming. He cares for the farm's 710 cows, calves and heifers with his brother and father and joined our Dairy Development Group in 2007. We believe James, and all our hard-working dairy farmers, deserve a fair price for their milk.

"The payment scheme is great because Sainsbury's guarantees to cover our production costs" - James Richardson

We know it is in everyone's interest for us to help our farmers invest and ensure our milk is farmed to the highest quality, animal welfare and environmental standards.

It's just one example of how our values make us different, forming part of our wider commitment to sourcing with integrity.