Sainsbury’s has warned growers it cannot force partnerships within its supply chains for its own benefit.
Head of agriculture Annie Graham said that while the supermarket is trying to forge closer relationships between businesses in its supply base, it would be illegal to force the issue.
Addressing delegates at a horticulture and potatoes session at the NFU conference on Tuesday, Graham cited Greenvale’s acquisition of West Midlands-based potato processor Swancote as an example of both its fresh and prepared suppliers working together.
She said: “It is a good model to align suppliers in the same categories. But we cannot dictate that further potato processors buy from primary potato suppliers. Be careful what you ask for as it’s illegal to make our secondary suppliers source from anyone in particular.”
In a frank and open speech, Graham said it would not source home grown produce on a “British for British sake” basis and said the emphasis was on quality. She revealed that, due to the complex nature of a number of its fresh produce supply chains, Sainsbury’s “do not know who [some of] our growers are”.
“We know [interbusiness relationships] are not a silver bullet but we are very carefully looking at farmers and growers at the heart of the business going forward. We talk about facilitation and not dictation,” she said.
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