Farmers suppling Sainsbury’s with milk will be paid more thanks to a new £6 million annual investment from the supermarket.

The investment follows a £8.9 million booster payment and adds to the £66 million Sainsbury’s has paid in support to farmers in total over the past year.

About £4.3 million of the investment will go to giving farmers an extra 1p per litre of milk meaning that the average farm will receive around £27,000 extra per year.

The supermarket has also earmarked £1.7 million of sustainability bonuses, with farmers rewarded for reducing their carbon footprint by using sustainably sourced feed and the correct amount of fertiliser.

Sainsbury’s says that around five per cent of dairy farmers left the industry last year to rising costs, while 10 per cent believe they will have left the sector by 2025. Many farmers will also need to make expensive upgrades to their farms due to new compliance legislation, which could drive away even more farmers from the industry, warned the supermarket.

Gavin Hodgson, director of agriculture, aquaculture and horticulture at Sainsbury’s, said that the dairy farming industry was becoming increasingly challenging and the supermarket has a responsibility to support farmers.

“We are proud of our continued investment into the Sainsbury’s Dairy Development Group and are confident our £6 million annual investment will help farmers to plan for a long-term and sustainable future,” said Hodgson. “In turn, we hope this will also provide surety of supply for our customers as we continue to champion British milk now and for the future.”

Share Story: