The NFU has today published the findings of a major investigation into the corporate social responsibility (CSR) policies of the UK’s ten largest supermarket chains. The union has been investigating the dealings large retailers have with their suppliers ahead of the instatement of a groceries adjudicator under a bill which will pass through parliament this year.

The latest NFU report, which examines the ten retailers whose dealings will be monitored by the supermarket ombudsperson, looks at how retail CSR programmes are impacting on UK farmers and growers. The report reveals that most of the major chains have sourcing policies that promote British produce and several more promise to increase UK sourcing. This is increasingly becoming a feature of CSR programmes.

NFU director of corporate affairs Tom Hind painted a positive overall picture of the supermarkets’ sourcing policies. He said, “Having good relationships with the UK’s grocery retailers is critical to the success of British agriculture and horticulture. Over recent years, many retailers have sought closer relationships with farmers and growers. They have developed standards to meet the expectations of groups of consumers, set up dedicated pools in some sectors and sought to champion UK and local sourcing.

“In our study we highlight both the positives and the negatives of the different approaches so as to encourage the take-up of best practice more widely across the industry. We’ve seen some great examples of retailers really pushing UK sourcing, others that are working closely with farmers and growers in terms of environmental concerns and even some retailers that are investing in research and development.”

However, the new report also identifies areas where the union feels large retailers could develop their commitments to their own benefit and that of their farmer suppliers. It shows supermarkets could do more to improve sourcing policies highlight the role of assurance schemes.

Although the NFU said the supermarkets’ moves on UK sourcing are encouraging, there remain few long term relationships within the supply chain, which has in the past led to exploitation. Last year, following a bumper soft fruit harvest, many large retailers were accused of reneging on deals with producers and opting to import fruits from Southern Europe, which undercut domestic producers. The NFU condemned this practice and the perpetuation of short-term, inequitable contracts; Mr Hind said the union report has shown, “All [supermarkets] could do more to strengthen relationships with farmers across all sectors.”

Longer term, mutually beneficial relationships do exist in some sectors; these include supermarkets which have dedicated sustainable dairy groups, who benefit from a price calculated using both market-based data and price of production.

Having argued that the current Grocery Supply Chain Code of Practice is not powerful enough in itself to influence the behaviour of the supermarkets, the NFU has mounted investigations and compiled a series of reports. The union has said it wants to see a more balanced supply chain replacing the current system wherein producers are held in thrall to the power of the supermarkets.

Mr Hind elaborated on how better relationships within the supply chain could benefit all parties. He said, “The NFU firmly believes that having strong credentials in favour of UK agriculture and British sourcing places retailers in a better position to address some of big issues that both they and farmers face: meeting consumer demand for high quality, affordable food, responding to climate change and other environmental pressures and investing for future competitiveness.”

Research from the IGD and others has shown that consumers are increasingly looking for British, seasonal and local food. Public concerns about buying power lead many people to demand that big businesses adopt more responsible commercial policies. The NFU maintains that “Stronger, more trusting relationships will not only help address consumer concerns about animal welfare or the environment, but also ensure that and create a climate in which businesses are more confident about investing.”

In terms of individual supermarkets’ policies, the report reveals:

• Waitrose and Morrisons’ policies on sourcing place them very favourably with commitments to 100 per cent UK sourcing in a number of areas. Sainsbury’s 20by20 commitments to double UK sourcing have the potential to make a significantly positive impact on UK agriculture
• Marks and Spencer’s Plan A incorporates a number of important elements that benefit UK farmers in terms of investments in research to extend growing seasons and create market opportunities for farmers and growers
• The Asda Farmlink initiative and R&D programme offer some good examples of positive farmer engagement and approaches to sustainability. Tesco and Sainsbury’s have both created major dairy pools with specific pricing commitments that benefit farmers.
• Discounters Aldi and Lidl are starting to put significant emphasis on UK sourcing with Aldi offering100 per cent British fresh meat commitments;

The full report can be read here.

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