M&S offers farmers decade-long contracts for beef and sheep

Retail giant M&S has announced a £2.1bn investment in its British lamb and beef supply chain, aiming to provide long-term certainty for thousands of farmers amid ongoing industry pressures.

The retailer has agreed new 10-year contracts with suppliers ABP and Dunbia, supporting a network of around 3,500 M&S Select Farmers.

The agreements secure year-round UK sourcing while maintaining exclusive ranges including Wagyu Gold, Aberdeen Angus Gold and organic lines.

See also: M&S backs British farming with £7m plan

M&S said longer-term contracts are designed to give farmers and processors the confidence to invest in technology, infrastructure and herd development.

Its Aberdeen Angus Gold standard, introduced last year, combines selective breeding and welfare measures to deliver beef with a reported 40% lower carbon footprint than conventional production.

Alex Freudmann, managing director of M&S Food, said: “M&S Food offers the best quality at great value, and it’s our British farmers who uphold our market-leading welfare standards, and produce food to the quality our customers expect.

“But farmers face a number of challenges and now more than ever need UK retailers to commit to sourcing from within the UK.”

He added that the long-term agreements would provide “security for farmers for years to come”.

Processor investment

Processors are also planning investment. Dunbia intends to introduce dedicated salt-drying chambers for M&S products, while ABP will upgrade packaging and cutting facilities and streamline production lines.

Dunbia managing director Michael Doran said farmers remain “central to the supply chain”.

“Their expertise, high welfare standards, and commitment to sustainable farming underpin everything we do,” he added.

ABP UK chief executive Kevin Cahill said the deal would “provide greater security for our farmer suppliers in the years ahead”.

The announcement forms part of M&S’s Plan A for Farming strategy to 2030, focused on UK sourcing, sustainability and sector resilience.

Importance of stability

NFU president Tom Bradshaw welcomed the commitment and highlighted the importance of stability in the current climate.

“With significant inflationary pressures being faced by farming businesses driven by the Iran conflict, the importance of building resilience into the sector has never been more important,” he said.

He added that the commitment would give farmers the confidence to invest, stabilise livestock numbers and support long-term growth and productivity.