Supermarkets are failing to pass on profits to producers, a report released by the Liberal Democrats revealed yesterday. Farmers’ total incomes have risen by just 29 per cent in the last 15 years compared to a 300 per cent rise in supermarket profits. The same period has also seen supermarket directors’ pay rise by 557 per cent.
Lib Dem shadow food and rural affairs secretary Andrew George MP will meet with department of trade and industry minister Gerry Sutcliffe in October to discuss strengthening the existing Code of Practice between supermarkets and suppliers.
He also advocates a greater role for the Office of Fair Trading in countering the “bully-boy tactics” of the large supermarkets.
“I’m all in favour of rewarding success, but this is simply rewarding those who have all the cards stacked up on their side of the supply chain. Supermarkets are now so powerful they can dictate market conditions for British farmers.
“It is clear the government can no longer sit on its hands whilst the supermarkets squeeze the lifeblood from our countryside,” George said.
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