Contracts still up for discussion at Sainsbury’s

Some would inevitably be easier to formulate than others, said director of trading Mike Coupe, who had earlier told guests at the traditional Sainsbury’s Royal Highland Show breakfast, his company’s annual purchase of Scottish farm produce totalled more than £600 million – much of it ‘exported’ south.

“We would like to develop a mechanism for some form of contract to suit both parties and which farmers would regard as something much more than a ‘floor’ from which they could walk away at the first opportunity.”

Mr Coupe said any contract would need to give producers a sustainable margin and the supermarket a secure supply of the required quality.

Development groups would continue to monitor possibilities.

Meanwhile, in an update on the progress of the dairy development group Mr Coupe said the sharing of information had in some cases enabled a 40 per cent reduction in input costs..