Archived press release

Curry report only first step towards greener farming

29 January 2002

Friends of the Earth has said that today's Policy Commission report on food and farming is only a first step towards a greener future for farming and the countryside. The plan to shift 10% of agricultural subsidies into environmental schemes is an important step towards rewarding farmers for care of the land, rather than supporting ever greater food production. But it still falls short of the 20% which, under current EU rules, the Government could direct towards rural development, organic farming, and other environmental schemes.

Friends of the Earth has also 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 with disastrous effects for the countryside and the rural economy. Neither issue has been adequately tackled by today's report from the Policy Commission. The report simply states that“trade liberalisation is not going to go away”. FOE'S warning was today echoed by two farmers in Gloucestershire (see below).

Last year Tony Blair acknowledged that farmers were being held in an “armlock” by supermarkets. But the Government has so far failed to tackle the problem. A Code of Conduct drawn up by the Department of Trade and Industry last year was meant to control the way major supermarkets deal with small suppliers including farmers. But the Code, which was agreed by the biggest supermarkets, is so weak that it simply legitimises the worst practices of the supermarkets. Today the Commission recommended that the Code should be reviewed in two years time and that an arbiter be appointed to monitor the implementation of the code -but suggested this is facilitated by the Institute of Grocery Distribution - an industry-dominated body which represents the major retailers. FOE wants the code to be thrown out now, and an independent watchdog appointed.

Charles Secrett, Executive Director at Friends of the Earth said:

“This report - even if the Government now puts it into practice - will only be a first step toward a green future for food and farming. Shifting only 10% of subsidies into environmental schemes will leave the majority of farmland under intensive production. And the Commission has not addressed two of the biggest threats to the future of farming in the UK, the power of the supermarkets, and the increasing push towards trade liberalisation. 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 welcomed the Commission's recommendation for ongoing support for organic farming which will help put our farmers on a level playing field with their European neighbours. But FOE is disappointed that the Commission has not recommended an ambitious target for the growth of the sector. FOE wants the Government to set a target for 30% of farmland to be organic by 2010. Currently about 70% of organic food eaten in the UK is imported.

Farmers comments on supermarket power:

Martin Harrell, an apple grower from Gloucestershire, confirmed the damage that uneconomic prices were having on fruit growers. He said:

"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. Cheap imports from overseas have not helped the situation.

If the major supermarkets continue to force prices down in this way, the UK won't have a top fruit industry in ten years time, and all our orchards will be grubbed up. The Government must consider the impact such changes will have on our countryside."

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. The issue of fair trading must be urgently addressed."

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Published by Friends of the Earth Trust