UK retailer Sainsbury’s has announced a support payment of up to £2.8 million (€3.32 million) for its pork farmers.
The retailer has created a pricing mechanism in association with its pork farmers to provide resilience and security by reducing market volatility, influencing the standard pig price, and helping the wider pork sector.
Since September 2020, it has paid an above-market price for fresh pork and its overall investment in the pricing mechanism has amounted to £5 million (€5.9 million) so far.
The pricing structure has enabled the retailer to offer additional short-term support through a £2.8 million investment for pork producers, the company noted.
The investment will allow farmers to align all pigs supplied to Sainsbury’s, not currently part of the model, to a fixed price for the 12 weeks from 13 March to 5 June 2022.
'Transparent Supply Chains'
Gavin Hodgson, Sainsbury’s Head of Agriculture, Aquaculture and Horticulture, commented, “At Sainsbury’s, we really value the relationships we have with our suppliers and believe that through support and collaboration we can uphold flexible, transparent supply chains that are able to navigate instability.
"The pork sector has seen unprecedented cost challenges and we hope that our further investment will provide our producers with security whilst maintaining high levels of animal health and welfare as well as product quality and great value for our customers.”
The supermarket chain constantly reviews its pricing model to ensure the longer-term safeguarding of supply.
In addition, it collaborates with producers to ensure a supply chain that is resilient, efficient, and engaged.