Sainsbury’s have implemented two initiatives to support farmers in improving quality and efficiency under their overall commitment to ‘Sourcing with integrity’.
The Farm Connections programme was developed following research that revealed only 17% of Sainsbury’s’ beef producers owned an email address. This meant that communication within the supply chain was limited and that the potential efficiency gains of using computer management systems were not being realised.
In response to this challenge, Sainsbury’s piloted a scheme with 16 farmers who had never used a computer. Through the scheme, farmers were offered not only a laptop but also, more importantly, the IT training needed to manage their farm business more effectively. On completion of training, farmer networks continue to provide valuable support for isolated farmers and opportunities to discuss pressing issues facing their businesses. Farmers also benefit from ongoing technical support.
Sainsbury’s Dairy Development Group (SDDG) was launched in October 2006, at a time of heightened concern about the future of the British dairy industry. The SDDG is a farmer-led forum. It aimed to bring Sainsbury’s closer to its dairy suppliers in order to understand the challenges they face, whilst driving profitability for farmers by improving on-farm efficiencies.
After consultation with the NFU, farmers were invited to participate in 6 regional meetings across the UK from which the remit and format of the SDDG was devised.
The 320 dairy farmers who supply Sainsbury’s with all their conventional milk are part of the scheme. Farmers are incentivised to take part by offering them a higher price for their milk and renewal of contracts for a further 18 months. In return, farmers must commit to a number of initiatives: improving herd health ; reducing their environmental impacts; adhering to standards of best agricultural practice; and improving business management through the use of IT. All investment costs for these initiatives are met by Sainsbury’s. Progress is reported on a quarterly basis.
Improving direct communications between Sainsbury’s and its farmers is key to the aims of the SDDG and unique to the industry; traditionally all communication between Sainsbury’s and dairy farmers was made via a processor. This is achieved via a dedicated website, quarterly newsletter, open forums at agricultural shows and a dedicated email address
