Supermarket code makes ‘no difference’ to farmers
Friends of the Earth weighs in ahead of Safeway debate
March 17 2003
Environmental campaigner Friends of the Earth has called for stronger regulation of UK supermarket/supplier relationships ahead of this week’s key OFT ruling on Safeway.
The lobbying group has published a survey of farmers and growers which is says shows that many feel the Supermarket Code of Practice has made no difference to the way in which supermarkets do business with them. Farmers also say they feel they cannot complain because of fears that they will lose business.
Friends of the Earth wants the government to strengthen the code to cover farmers who supply supermarkets via an intermediary, such as a wholesaler or dairy, as well as to appoint a new independent watchdog to ensure a strengthened code is effective.
The survey of 161 farmers and growers from the dairy, livestock, arable, and fruit and vegetable growing sectors, showed that just 44 per cent were aware of the code of practice, introduced a year ago. More than half, 58 per cent, thought the code had made no different to their business dealings with supermarkets.
Supermarkets currently covered by the code, which include Tesco, Asda, Sainsbury’s and Safeway were all said bt farmers to have continued practices identified as being of concern to the Competition Commission.
Just over a quarter, 26 per cent, had been required to change transport or product packaging without receiving compensation for additional costs, while 16 per cent had to meet the cost of unsold or wasted products although the product was not at fault.
Many farmers said they were being paid the same or less than the price of production for their produce, including 52 per cent of dairy farmers. About a third of respondents who had experienced problems supplying supermarkets said that “fear of delisting” was their reason for not complaining.
Friends of the Earth said many farmers support the idea of further legislation to stop unfair trading practices, and for an independent regulator to oversee the relationships between supermarkets and suppliers.
Sandra Bell, Friends of the Earth food and farming campaigner said: “This survey provides a snapshot of how UK farmers are still very much in the arm lock of the supermarkets, despite the Code of Practice. The Government must impose a new code with teeth on the supermarkets, and ensure it is enforced.
“If the supermarkets are allowed to continue squeezing UK farmers they will not be able to invest in the sort of quality local food that people want, and many will go out of business. This will leave us with the biggest most intensive farms in the UK and a greater reliance on imported food.
“This survey is another indication that the big supermarkets in this country already hold too much power. They must not be allowed to extend their power by taking over Safeways.”
