NFU Scotland has called on Tesco to deal with all its suppliers in a fair and equitable way after the retailer’s record results released yesterday.

The NFUS said in a statement: “The £3 billion figure posted by Tesco has been achieved against the backdrop of a recession that has seen retailers engage in a price war aimed at providing consumers with the cheapest shopping basket. This simply confirms the industry belief that the financial squeeze placed by the retailer on its suppliers has helped keep the cost of food down for its millions of customers but has allowed the retailer to maintain or extend its profit levels.”

NFUS president Jim McLaren said: “Tesco is a massive success story for the UK but with great success comes great responsibility and an expectation that those who deal with Tesco are treated in fair and proper manner. That will be the case for some, but certainly not all.

“The company is easily the largest single customer for Scottish agricultural produce and several Scottish farmers will have benefited from supply chain arrangements that have seen them provide Tesco with some of their requirements for produce on a regular, more formal basis.

“While Tesco is keen to highlight these supply chain relationships to the general public, we need to see such benefits extended to many more of those supplying Tesco with food…

“Failure to embrace this will simply add weight to the Competition Commission’s recommendations regarding the urgent need for an ombudsman and a strengthened code of practice for the retail sector. Although establishing an ombudsman would cost Tesco a fraction of the profits it recorded, the retailer has repeatedly voiced its opposition to this.

“Tesco, or any retailer, has nothing to fear from having the grocery sector policed in a more fair and transparent manner. It sends out a clearer message to the consumer that retailers treat their suppliers properly. As the dominant force, Tesco should be leading the way on creating an ombudsman rather than dragging its heels,” added McLaren.

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