The situation at Del Monte Fresh in York is sure to get everyone talking about retail supply chains again (page 4).

The loss of a reported £16 million contract would put any company under pressure, and nobody in the industry wants to see suppliers struggling to keep factories open and retain staff.

As FPJ went to press it was unclear to whom Morrisons has switched the contract, but observers have said the situation again highlights the fact that across fresh and prepared produce there are a number of suppliers relying on high-volume deals to stay afloat.

We have already seen an acceleration of consolidation and M&A activity over the last year and there’s every indication that is going to continue. Many suppliers are increasingly looking to protect themselves by widening their spread of customers to prevent catastrophe if one customer pulls the plug and decides to go in another direction.

At a time when we know supermarkets are juggling the way they interact with growers, importers and other suppliers, everyone will be paying closer attention than ever to their commercial relationships.