Nigel Miller NFU Scotland president

Miller: 'NFUS harbours deep concerns over price war impact'

NFU Scotland has met with Sainsbury’s CEO-elect Mike Coupe over fears that primary producers will suffer if the supermarket price war continues.

At a meeting in Edinburgh yesterday, NFU Scotland president Nigel Miller said that while producers with direct supply contracts may be protected at the moment, there were fears over the long-term impact of continued discounting by retailers.

“We harbour deep concerns about the impact that the current supermarket price war could have, selling staple goods at rock bottom prices and stripping value out of the chain,' he said.

“While farmers on direct supply contracts may be sheltered just now, we discussed with Mr Coupe our worries that primary producers will suffer if the price war continues long term.“

Miller said that Coupe had assured him that Sainsbury’s has no interest in fuelling a price war that drives basic food buys to an unsustainable level.

“That statement will be welcomed by Scottish producers,” Miller added.

This meeting follows the news that growers fear Morrisons’ proposed savings of £1 billion could threaten the viability of many businesses in the supply chain, as reported by FPJ last week.

Coupe also said he would like to see closer links with Scottish producers, with emphasis on contracts that recognise production costs.

Miller said it was “of real benefit” to sit down with Coupe and discuss his plans for Sainsbury’s in Scotland, adding that the company’s growth is “a retail success story”.

“We certainly welcome his commitment to grow the Scottish and British offering in stores and his interest in working more closely with primary producers on the basis of contracts which account for cost of production,” he said.

He added that the company is looking to establish assurance standards to support its key values of quality and ethical sourcing.

“Any proliferation in assurance schemes can only add cost for producers and retailers so it was good to hear that Sainsburys is willing to work with industry on those standards to avoid repeated inspections or duplication,” he said.

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