Sainsbury’s will invest more than £5 billion in long-term agreements with over 2,500 British and Irish farms by 2027, expanding multi-year contracts to secure food supply and support producers facing rising costs and climate pressures.

The agreements will cover key products including milk, carrots, mushrooms and chicken, helping to stabilise supply chains. The retailer expects 60 per cent of its own-brand fresh suppliers to be on contracts lasting more than five years by the end of 2026.

The investment will underpin production of around 3.1 million tonnes of own-brand fresh food, reflecting a shift towards longer-term sourcing arrangements. Sainsbury’s has also extended its model to 62 British berry farms, signing new five-year deals with growers including Angus Soft Fruit and Dyson Farming.

Speaking in a company statement, chief executive Simon Roberts said: “Good food is something people depend on every day. In uncertain times our focus is on keeping food great value for customers while giving farmers the reassurance and certainty they need to plan ahead.”

Roberts added that clearer pricing and purchasing commitments would enable farmers to invest with confidence, stating that “when farmers know what we’ll buy, at what price and for how long, they can plan, invest and keep producing”.

The move reflects a broader shift away from short-term seasonal agreements, particularly in categories such as soft fruit, where contracts have traditionally been more volatile. The retailer said longer deals would support investment in sustainability and innovation at a time when farmer confidence remains subdued.

Government figures welcomed the initiative as part of wider efforts to strengthen domestic food production. Angela Eagle, minister for food security and rural affairs, said: “Long-term investment in the British farming sector is vital to help secure more homegrown, high-quality food for families, strengthen supply chains, and support innovation and sustainability.”

Sainsbury’s said its long-term partnership model dates back nearly two decades, beginning with dairy agreements designed to shield farmers from fluctuating input costs. The approach has since expanded across meat, poultry and produce, with pricing mechanisms linked to real-world costs such as feed, fuel and fertiliser.

The latest expansion comes as the retailer seeks to reinforce resilience across its supply chain while increasing the share of British-sourced food in its ranges.

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