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Sainsbury’s Sustainable Calf Scheme: Empowering Dairy Farmers for a Greener Future

Established in 2009, Sainsbury’s Sustainable Calf Scheme aims to provide a stable market for dairy farmers while promoting environmental sustainability. With 343 dairy farmers involved, the initiative focuses on herd health, collaborative working, business improvement, and energy efficiency. The scheme includes unique TB units that ensure calves from restricted farms can access a secure market, with prices decoupled from market fluctuations to guarantee profitability. By partnering with Sainsbury’s beef suppliers, the program supports farmers in maintaining high standards of production amidst rising feed costs.

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Sainsbury’s Sustainable Calf Scheme: Empowering Dairy Farmers for a Greener Future

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  1. Risk Sharing Sainsbury’s Sustainable Calf SchemePhil Nash Sainsbury’s Dairy Development Group (SDDG) Farmer09.03.2011

  2. Background to SDDG • Established 2007 • 343 dairy farmers selected from 8 UK milk fields • Steering Group committee meet with Sainsbury’s regularly to manage the scheme • 4 key ‘ Workstreams’ • Herd Health & Welfare • Collaborative Working (Calf & cull cow schemes) • Business improvement • Environment Energy

  3. Calf Scheme • Established November 2009, to secure a market for SDDG B&W bull calves • In partnership with Sainsbury’s beef supplier • Unit at Tetbury (other units in South West and Midlands) • 2 week old calves collected direct from farm (as per rearing protocol) • Calf price decoupled from the market price to cover cost of production • Agreed a forward price contract with rearing/ finishing unit.

  4. Rearing Units for SDDG calves from farms under TB restriction • TB Units • Unit 1 established February 2010 – Cirencester, Gloucestershire • ‘TB Exempt’ Unit’: calves collected from a farm under TB restriction & will remain on this rearing/ finishing unit till slaughter • Unit 2 established November 2010 – Tiverton, Devon • ‘TB Quarantine Unit’ – calves collected from a farm under TB restriction and have 2 TB tests on the rearing unit to gain a TB free status. These calves can then be moved to another finishing unit. • Calf price same as those from un-restricted herds • Only scheme to pay a sustainable price for calves from TB restricted farms • 800 SDDG calves reared through these 2 units.

  5. Were does the risk lie? • Farmer • They are guaranteed a market for their calf that is sustainable (calf price covers the cost of rearing & includes a margin) Processor • Normally buy cattle based on the market price. The high feed price currently challenging but the supply chain is guaranteed and the production standards are known Sainsbury's - Ring fenced & secured part of their beef supply however currently high feed prices are making it more expensive, but taking the long term view

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