TROUBLED SUPERMARKET giant Sainsbury‘s has revealed that it is moving to a single supplier for all its British beef.

From January 2005, Anglo Beef Processors (ABP) will become the supermarket‘s sole supplier for 40,000 tonnes of beef a year, worth £240m.

Dungannon Meats has been dropped as a supplier, and has announced that it will have to close a packing facility in Northern Ireland as a result.

Sainsbury‘s said cost savings would be passed back to their retail customers through lower prices and would also benefit farmers.

“ABP were well placed to supply us regionally because they have seven plants around the UK,” said Gillian Taylor, a spokeswoman for Sainsbury‘s.

“It fitted in with our regional supply policy.”

Birmingham-based ABP – which has 8000 producers on its books – said that it would welcome into its Partnership Group any producers formerly supplying Dungannon.