Suppliers: Relationships with producers

In 1886, John James Sainsbury began to buy direct from producers. He had discovered that his Dutch butter importer was storing supplies in ice caves to sell on when the market price was highest. He therefore appointed a new agent, the Royal Buismann Dairy Exchange.

They sent consignments of butter twice a week, which John James would personally inspect for freshness. He also insisted that every case be stamped with the date of production, an innovation which was later made compulsory by the Dutch government.

Today Sainsbury’s  continues to support the farming industry. In the early 1990s, Sainsbury’s established ‘Partnership in Livestock’ and ‘Partnership in Produce’. These pioneering schemes brought together Sainsbury’s, suppliers and farmers, to provide training and equipment and to support research.

The ‘Farm Promise’ scheme, launched in 2006, offers financial and business support to British farmers while they are converting to becoming organic producers. In the same year Sainsbury's Dairy Development Group (SDDG) was also formed as a unique forum to work more closely with those involved in the British dairy industry.

Some produce, such as exotic fruit, cannot be sourced from UK. Sainsbury’s has sold Fairtrade products since they were first launched in 1994 and is the largest retailer of fair-trade products in the UK. In December 2006 Sainsbury’s became the first UK retailer to sell only Fairtrade bananas and from 2007 all own brand tea is being converted to Fairtrade.