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Published on Regoverning Markets (http://www.regoverningmarkets.org)

New regulator must be given the teeth to keep powerful retailers in check, farming chiefs say

By billv
Created 2008-02-15 13:41

The Times February 15, 2008. By Valerie Elliott

"Offshop", which will arbitrate disputes between supermarkets and suppliers, must be given powers to conduct unannounced audits at food companies, farmers' leaders say.

The farming industry senses victory after a five-year battle to persuade the Government and competition authorities that suppliers have been losing money because of tactics used by supermarkets to keep up their profits. But senior figures are cautious about a farm prices champion until they read the small print of the Competition Commission's provisional findings.

Supermarket chiefs are already preparing a new assault on the plans. Lucy Neville-Rolfe, of Tesco, said: "We do not believe it would be in the best interest of consumers if the industry had additional burdens placed on it which reduced flexibility and efficiency for both retailers and suppliers."

Full article here [1]
 

See also: ‘Buy one, get one free? The grower has to pay for those, and gets no say in it'

Few farmers are brave enough to speak publicly about sharp practices employed by supermarkets to keep prices down and boost profits. Many say that they operate in a climate of fear and risk losing business if they make any rumblings, let alone lodge any formal complaints.

Full article here [2]

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