Supermarket power threatens countryside26 January 2002
Friends of the Earth warned the Government that unless it urgently addressed the key issues of trade and supermarket power thousands of farmers will be forced out of business - a disaster for the countryside and the rural economy. Neither trade nor supermarket power has been tackled by the Policy Commission on the future of farming and food which is due to report at the end of January.
Friends of the Earth's warning was echoed by two farmers in Gloucester farmers. Apple-grower Martin Harrell pointed out that: "Since December our prices have fallen by up to 10p per pound at a time when they should normally be going up. The industry could end up dumping thousands of tonnes of the best UK apple crop we have seen for many years. The main reason for this problem is a lack of shelf space allocated to us by our supermarkets. If the major supermarkets continue to force prices down in this way, the UK won't have a top fruit industry in 10 years time, and all our orchards will be grubbed up."
Dairy farmer Gareth Watkins added: "Having just restocked after foot and mouth, I find that liquid milk prices are falling and are now below my production costs. My buyers are being squeezed by the supermarkets which sell liquid milk at below acceptable levels to attract customers. I am being asked to run a business at a loss. I have done all I can to become efficient and meet high welfare and farming standards. But unless I get a fair deal from the supermarkets I will not be able to continue."
"Farmers must be given a fair deal," said Friends of the Earth Real Food Campaigner, Pete Riley. "Current supermarket practice and government policy is squeezing out small and medium sized farmers. Unless the Government tackles the trading practices of the big food companies, many of the farmers that manage the countryside for the benefit of tourism and wildlife will disappear."
Friends of the Earth is calling on the Government to throw out the Code of Conduct drawn up by the Department of Trade and Industry last year, which was meant to control the way major supermarkets deal with small suppliers including farmers. Friends of the Earth considers that the code, which was agreed by the biggest supermarkets, is so weak that it simply legitimises the worst practices of the supermarkets. Friends of the Earth also wants the Government to set up an independent watchdog for all supermarkets.
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