Category management came under attack during the horticulture surgery at the NFU's annual conference in London last week.
The opening salvo was fired by Brian Marshall, chairman of the ornamentals committee who was clearly not enamoured by category management and its potential to deflate prices.
Heavy canon fire came from David Chandler a top-fruit grower. He talked of the major multiples reducing their suppliers to implement category management. "I was told it should be beneficial to both partners but some use it as a stick, and some use it as a one-sided argument." Chandler added: "I do put fruit through the wholesale markets and can get some better prices but it is a declining marketplace. The major supermarkets are the only other outlet and they are getting stronger. The world globalisation is quoted more and the multiples have phenomenal power. They are prepared to use it to get their returns to their shareholders, but we are being beaten over the head more and more." He went on to fire a broadside at Tesco. After a very good crop this year, he alleged that he visited his local store and found a poor showing of fruit although there were empty crates "turned upside down... I was told it was their system.
"If I under-delivered day in and day out I would be delisted and never allowed back into the system. It is all one-sided. The code of practice shows how much power the multiples have, it has [become] watered down." Horticultural executive chairman Michael Holmes reported there were some large marketing organisations who showed more allegiance to the supermarkets than the growers. He continued "we have had several complaints about category management" and said a special meeting was being arranged.
It was generally agreed at the surgery that there were still too many instances of people going to the back door and lowering prices to the supermarkets. Volume clout was necessary if action was to be taken, and growers should work together more and have the capability and intelligence in terms of the structure needed.
