As farmers continue to express apprehension at the possible outcomes of supermarket price wars, which they believe could arise as a result Tesco’s plans to slash prices on many of its own-brand lines, including fresh produce and dairy products, the NFU has announced plans which could help them stand up to the retailers. image expired

The union revealed plans to ‘name and shame’ retailers which treat farmers inequitably; the NFU warned it will exercise whatever pressure it can to combat retailers who put downward pressure on their suppliers in order to maintain their own profit margins while engaging in price wars.

The NFU Horticulture Board is currently carrying out an inquiry into how the sector operates following reports from producers that their prices are being squeezed to help those further up the supply chain offer more favourable retail prices. NFU president Peter Kendall said he supported the ‘name and shame’ tactic to combat such unfair practices.

Farmers in the dairy, horticulture and livestock sectors have all said that recent increases in farm-gate prices do not come close to covering the alarming rise in input costs including feed and fuel prices and fear that, for many, pressure as a result of price wars could be the final straw, forcing them out of the industry.  

Sarah Pettitt, chair of the Horticulture board, said, “Against this backdrop, the horticulture and potato board has agreed to carry out an assessment into supply chain operations. It will include price transmission, margin, contract terms and retailer and customer behaviour.

“These issues have gone unchallenged in the horticulture sector for too long and we are simply not prepared to tolerate it as a commercial reality any longer.”