Should we boycott fruit and veg from Supermarkets if Govt. backs down?

[wednesday1]

Though not usually one to have much sympathy with farmers, after reading the following article in yesterdays Observer I did feel quite shocked at how badly the supermarkets treat their suppliers.

The Government is coming under pressure from the big retailers to water- down or not implement any new legislation to deal with the mistreatment of their suppliers.

Full artilce below:

 

 

Long-awaited legislation on how supermarkets treat suppliers looks likely to be derailed or rendered toothless by "heavy artillery lobbying" from big retailers.

 

Asda, Sainsbury's, the British Retail Consortium and the Co-op have all told a Commons select committee that the proposed groceries code adjudicator is an unnecessary extra burden on supermarkets and that it would lead to higher food prices.

 

Though the draft bill reflects manifesto promises by the Conservatives and Liberal Democrats, the government is likely to heed the retailers' threat. Food price inflation, at 4.9%, is a major concern as global prices seem likely to rise in the long term.

 

Yet organisations ranging from the National Farmers Union to Friends of the Earth and ActionAid say the bill is crucial to tackle years of abuse and restrictive practices as the supermarkets have upped their profits during the downturn by squeezing smaller suppliers.

 

Three thousand farmers and other suppliers have gone out of business in Britain as a direct result of supermarkets' bullying and unfair buying policies, according to Andrew George, MP for West Cornwall, who heads the Grocery Market Action Group. He said the potential cost of the adjudicator to the retailers was "a gnat bite", as long as they carried out their business fairly.

 

The government introduced a binding code of practice on the 10 biggest retailers and processors after two damning Competition Commission reports. The supermarkets say that the code is working well – there have been no complaints made under it – and so there is no need for an ombudsman. But the NFU says that a "climate of fear" prevents hard-pressed farmers complaining lest there be "reprisals". Campaigners want the bill toughened to allow an ombudsman to hear anonymous complaints and impose fines.

 

An Observer investigation backs up the NFU's accusation. Among dozens of farmers interviewed, only very few felt able to let their names be used. Yet the practices they revealed – including "no-price contracts", being forced to sell their produce on two-for-one discounts, and having to use supermarkets' preferred middlemen at vastly increased cost – are all banned by the code of conduct and may be illegal.

 

 

Pig farmers have been selling their animals at a £10-£30 loss since August last year, when a huge and unexpected rise in the price of feed hit them. But supermarkets have largely refused to allow any price increases, and 30 farmers have gone out of business this year, according to the National Pig Association.

 

One dairy farmer complained to the Observer that he was getting only 1p more per litre of milk than he was in 1997, though the price in the supermarket has gone from 42p to 80p or more. The NFU says that at least one dairy farmer in Britain has gone out of business every day for a decade.

 

Andrew George MP said: "We need this measure: food producers here and in the developing world want to concentrate on being able to provide healthy food for customers, they do not want to perpetually fight the supermarkets for survival."

 

http://www.guardian.co.uk/environment/2011/jul/02/supermarkets-derail-bill-protect-suppliers

[taxman]

You'd have thought The Co-op might have shown a different attitude.

[mart]

Though not usually one to have much sympathy with farmers, after reading the following article in yesterdays Observer I did feel quite shocked at how badly the supermarkets treat their suppliers.

The Government is coming under pressure from the big retailers to water- down or not implement any new legislation to deal with the mistreatment of their suppliers.

Full artilce below:

 

 

 

Yet the practices they revealed – including "no-price contracts", being forced to sell their produce on two-for-one discounts, and having to use supermarkets' preferred middlemen at vastly increased cost – are all banned by the code of conduct and may be illegal.

 

 

Pig farmers have been selling their animals at a £10-£30 loss since August last year, when a huge and unexpected rise in the price of feed hit them. But supermarkets have largely refused to allow any price increases, and 30 farmers have gone out of business this year, according to the National Pig Association.

 

http://www.guardian.co.uk/environment/2011/jul/02/supermarkets-derail-bill-protect-suppliers

 

The squeezing of suppliers by supermarkets has been well documented on Tv and in the media in general. I thought the idea of an ombudsman to impose fines (in the above report) was a good idea-someone to keep the supermarkets "in check"

 

In the report i thought that there was maybe a little conflict (see my bold), what do you think? If there was a price contract in place to guantee prices both ways, what would have happened when the price of pig feed increased?

[Obelix]

I can buy my veg a lot cheaper, and with better quality by walking down to my local farm.

 

What I don;t get is melons in December, and similar out of season issues. The price inflation would probably disappear to a large extent from food if you only looked at the price inflation on in season foods. If these are sourced locally then the transport cost disappears and then the food inflation for in season goods drops off.

 

Of course, todays consumer doesnt want swede and onions in winter- they want to have the strawberry and melon fool flan as well and eat it :-)

[alex3659]

Farmers plead poverty all the time it is part and parcel of the job.

[wednesday1]

You'd have thought The Co-op might have shown a different attitude.

 

 

Indeed you would. In the article in yesterdays paper though, one of the farmers said that he had stopped supplying to Tesco to supply The Co-op instead, who payed him more for his produce.

[wednesday1]

Farmers plead poverty all the time it is part and parcel of the job.

 

 

You're right but they do seem to have a good case this time.

 

I think most farmers seem to be asset-rich, cash poor!

[wednesday1]

The squeezing of suppliers by supermarkets has been well documented on Tv and in the media in general. I thought the idea of an ombudsman to impose fines (in the above report) was a good idea-someone to keep the supermarkets "in check"

 

In the report i thought that there was maybe a little conflict (see my bold), what do you think? If there was a price contract in place to guantee prices both ways, what would have happened when the price of pig feed increased?

 

 

Your first point about the offers, if the supermarkets wish to make offers on goods then it should be done in conjunction with the supplier and the two parties come to an agreement on who foots the cost of the offer.

 

Your second point about about animal feed increases, then a surcharge should be made to the supermarkets to protect the already small margins of the farmer (as is done in the steel industry to when alloy charges increase).

[Mecky]

Ah ,the old "Tax me and I'll charge people more attitude." (chestnut). A way to cover the cost and then add something a little extra. It says it all, profit before people

[Obelix]

Just like a farm would for example...