M&S has invested £2.1bn in its British lamb and beef supply through two decade-long contracts.
The 10-year supplier contracts with ABP and Dunbia will give British suppliers “the surety of supply and confidence to invest against a challenging backdrop and increased competition”.
The contracts also secure long-term British supply for M&S all year round while protecting exclusivity across Wagyu Gold, Aberdeen Angus Gold, and Organic ranges.
“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,” said Alex Freudmann, managing director of M&S Food. “But farmers face a number of challenges and now more than ever need UK retailers to commit to sourcing from within the UK.
“Our long-term commitment to sourcing British fresh lamb and beef, through our partners at ABP and Dunbia, will support longer-term investments and security for farmers for years to come.”
Dunbia plans to open new salt drying chambers exclusive to M&S and ABP will partner with the retailer to invest in the latest equipment used for packaging and cutting meat, and streamlined production lines.
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The two suppliers work with 3,500 M&S Select Farms and one of these farmers, Trevor Bamford, said the contract provided long-term stability which is “essential if we’re going to keep improving our businesses and planning for the next generation”.
For Dunbia the partnership is a “significant milestone” according to MD Michael Doran.
“This agreement strengthens our ability to support the network of dedicated British farmers who are central to our supply chain,” Doran added. “This partnership allows us to deepen that collaboration, invest in their future, and build a resilient, thriving British farming sector for the years ahead.”
Kevin Cahill, CEO of ABP UK said: “This long-term agreement will enable us to invest in the future of the supply chain and provide greater security for our farmer suppliers in the years ahead.”
The move was welcomed by NFU president Tom Bradshaw who said it was “good for growth, good for productivity and good for sustainability” as it gave farmers the “certainty they need”.
”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. ”For a long time, we’ve been highlighting how fairness in the supply chain plays an important part in that resilience as it boosts businesses confidence levels.”
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