Retailers need to realise that competition is not the “be all and end all”, Waitose managing director Steve Esom told the National Farmer’s Union Conference on Tuesday.
The retailer called for a wider move towards fair trade for British farmers.
Esom said that, while the grocery industry has seen some top examples of best practice in recent years, many producers operate in a “climate of fear”.
He added that only seven farmers had made formal submissions to the Competition Commission and a recent poll by Farmers Weekly showed that 70 per cent of farmers would not sign a supermarket contract.
Esom said: “Clearly, there is a pressing need for supermarkets to move beyond islands of best practice and adopt a more consistent approach when working with farmers…
“Retailers need to realise that competition is not “be all and end all” rather, recognise the value of our supply chains, which are actually the backbone of our businesses.”
Esom pointed to differentiation as the way forward for the industry following an increased interest in food provenance. But he warned: “For differentiation to work, there clearly needs to be educated and committed support from the government, retailer and consumer.”
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