M&S commits US$2.63B to UK lamb, beef supply in decade-long deal
Investment targets processing, packaging, and long-term farm stability
UK – Marks & Spencer has outlined a ten-year sourcing agreement with meat processors ABP and Dunbia, tied to an investment of about US$2.63 billion (£2.1 billion) aimed at securing its British lamb and beef supply chain.
Under the arrangement, around 3,500 farmers within the retailer’s M&S Select Farm network will supply livestock to stores nationwide, forming the backbone of its domestic meat sourcing strategy over the next decade.
The company indicated that the deal will focus on expanding its premium product lines, including Wagyu Gold, Aberdeen Angus Gold, and organic ranges, as demand for beef products continues to rise among its customer base.
Supply chain investment plans
In line with the agreement, Dunbia plans to introduce dedicated salt drying facilities for M&S products, while ABP is preparing upgrades to its packaging systems and processing operations to improve output and handling efficiency.
The investment comes at a time when UK agriculture is dealing with cost pressures linked to inflation and geopolitical tensions, which industry representatives say have increased the need for long-term commercial certainty.
Tom Bradshaw, president of the National Farmers’ Union, said the commitment offers farmers clearer visibility over future demand, which could influence decisions on herd management and livestock numbers.
He added that improved confidence across the supply chain may support efforts to maintain cattle and sheep populations while contributing to productivity and environmental targets.
Industry and retailer outlook
M&S Food managing director Alex Freudmann stated that sourcing from domestic producers remains central to the retailer’s model, particularly as farmers face rising operational challenges.
Freudmann said the agreement is intended to provide continuity for suppliers while ensuring that product standards and pricing remain aligned with customer expectations.
Dunbia managing director Michael Doran described the deal as a continuation of its relationship with M&S, with a focus on maintaining supply links with farmers operating under established welfare and production practices.
Similarly, ABP UK chief executive Kevin Cahill said the extended contract would allow further investment across its supply network while maintaining consistent service levels for the retailer over the contract period.
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