Savings in the supply chain will result in increased costs for consumers says NFU

National Farmers Union (UK) April 21 2009

The NFU has today recognised the impressive Tesco financial results but warns that Government must take its responsibility to consumers seriously.

Speaking after the announcement NFU President Peter Kendall said: "Undoubtedly this is a Great British success story and in many cases British farmers have shared in that success. However, my worry is that as the UK's flagship retailer weighs in with another record breaking set of results, Government may be blinded by Tesco as one of the few bright lights in the economy and forget its competition responsibilities."

Today's results announcement sets out how the retailer has achieved a record annual profit including its Step-Change programme.

Mr Kendall continued: "To a Tesco supplier, 'savings in the supply chain' often means that they will be subject to even more unreasonable demands including lump sum payments to contribute to that impressive bottom line. Following the conclusion of the Competition Commission investigation last year it is clear that unreasonable behaviour impacts on the consumer. In the consumer's best interests, Government must implement the Commission's remedies, including a grocery market ombudsman, if it is unable to secure undertakings from retailers such as Tesco."

Source: http://www.nfuonline.com/x37819.xml