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Dairy farmers to see price rise from Sainsbury’s

Dairy farmers to see price rise from Sainsbury’s

Earlier this month, Sainsbury's announced a rise in the price paid to dairy farmers in Britain via the COP model, and wrote to farmers telling them about the move. 

This COP or Cost of Production model is in place for all farmers supplying Sainsbury's fresh milk, according to the chain. 

The price is set to rise from 32.18ppl to 34.15ppl on October 1st this year, dairy farmers were told. 

This is paid via a system which looks to offer reward to farmers that are part of the company's Dairy Development Group for environmental and animal welfare standards of an outstanding nature, as well as being sustainable supply chain-wide, the organisation says.

Among the COP scheme's unique features is that key input costs are reviewed every quarter. This would be costs associated with the fertiliser used, what cows are fed and fuel. 

That means particularly volatile cost elements are regularly looked at, with the price of milk changed in reflection of such costs rising and falling. This creates a deal for farmers that's fair, Sainsbury's says. 

The supermarket has a sustainability scheme called 20x20, and has set a goal of sourcing every raw material or commodity it needs in a sustainable way by the year 2020, as well as increasing British food sales by 100 per cent, and gaining number one position when it comes to animal welfare. 

Meanwhile, it is currently in the midst of a trial involving a trailer for the transport of frozen and chilled goods which is CO2 refrigerated. 

The supermarket is reviewing the gas it uses for transport refrigeration and has a goal of converting every one of its retail locations to natural refrigeration by the year 2030. 

Sainsbury's refrigerated depots were converted back in 2011, and before the year is out it will likely have switched some 250 stores over to CO2 refrigerant. 

 

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