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In March Graig Producers was forced to suspend trading with Vion, following an ultimatum from Vion to the farmers that they must be paid directly by the company, thus bypassing their marketing group. A similar move by Vion was rejected by another leading farmers’ group, Meadow Quality, in January this year. This action by a processor that supplies the supermarkets has been described in some quarters as an unethical abuse of power and has been condemned by a wide network of people and organisations spanning Parliament, Food Policy, Farming and Environmental Groups, and the Church.

Roger Williams MP, Brecon & Radnor, tabled the EDM which is gaining support from MPs:  ‘That this House supports co-operatives and marketing groups representing livestock producers; deplores moves that undermine them by abattoirs and large meat processors which would result in the marginalisation of traditional farming families, leaving them without adequate representation in the market; and is concerned by moves to impose direct payments to farmers, fundamentally changing the basis of the supply chain in favour of abattoirs and meat processors, potentially rendering smaller family farms financially unviable, thus having a devastating impact on the whole farming community and rural infrastructure.’

Roger Williams, MP, commenting on the EDM said: “This is a crucial situation for farmers and should not go unchallenged.  It is yet to be seen at the Committee stages of the proposed Grocery Adjudicator Bill whether the new ombudsman will have the power to prevent situations like this in the future.  We need to open people’s eyes to what is happening in the supply chain and redress the balance of power.”

Last week the Farmers’ Union of Wales added its support to farmers’ marketing groups.  Emyr Jones, President of the Farmers' Union of Wales commented: “Family farms are the bedrock of Welsh agriculture, and working collaboratively helps ensure that these businesses, which are vital to the rural economy, can not only survive, but thrive. Working together gives Welsh farmers a strengthened position within the supply chain, in what is a very competitive industry, dominated by large processors and retailers.  There already exists an imbalance of power within this supply chain, with supermarkets playing the most dominant role, and any moves to further weaken the position of farmers and erode the principle of collaborative working must be resisted.”

Bob Kennard, managing director of Graig Producers, says “it is ironical that, at the same time as there is a call for producer groups in the dairy sector to negotiate a better deal for dairy farmers, we are seeing producer groups in the beef and sheep sector being side-lined by the big processors.”

Entrepreneur and Dragons' Den TV star Deborah Meaden was quoted earlier this month as saying that the dairy supply chain was unfairly weighted towards a system where supermarkets and milk processors held too much of the bargaining power.

“It is this increase in control ,” according to Bob Kennard, “that we are challenging. Unless government, the public, but most importantly producers, make a united stand against these practices then it is likely that the crisis in the dairy industry – where we have seen the number of dairy farms halved in the last 10 years - will be repeated in the beef and sheep sectors in the next few years”.

To add your name to the growing numbers of people who want to see a greater degree of co-operation in the food supply chain, visit www.ethicalFood4Me.org

Read previous article about Vion and Graig Producers

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