Lamb producers supplying Sainsbury’s will be guaranteed a price more than 60p/kg above the market rate until the end of February.
A total of 800 sheep farmers in the Sainsbury’s Lamb Development Group will receive the price boost, which will be funded by the retailer to help farmers get animals to the ideal weight at the right time of the season, said the retailer.
This will bring the price to £3.80-£4.00/kg, up from £3.20/kg.
“Because of the close relationship we have built with our farmers, we can react quickly to the volatile market conditions, which is why we have announced a new price for our lamb farmers today,” said chief executive Justin King.
“One of our key values is to source with integrity and offer the best produce from local producers, so working with more local farmers and suppliers is also paramount to our growth.”
Sainsbury’s is appealing for more Welsh farmers to join the group so the retailer can source and sell more Welsh products. On a visit to the Pontypridd store, Mr King highlighted that the supermarket currently sources in excess of £40m worth of products from Wales.
Welsh first minister Carwyn Jones said Sainsbury’s was a large employer in Wales, with scope to explore further opportunities.
“Mr King’s call for more Welsh farmers and suppliers to come forward and work with the company is one we can all welcome,” he said.