Buying behaviour of supermarkets ‘exploits’ farmers

SOME six in 10 farmers say they consider their farm to be at financial risk because of supermarket buying behaviour, with the industry branding the current regulatory scheme “unfit for purpose”.

- JOSIE CLARKE

Some 68% of farmers say making a living through farming has “never been harder” while 69% believe the buying relationship between growers and retailers has deteriorated, according to a study led by Devon-based vegetable box company Riverford.

Almost every farmer surveyed (99%) said they had faced at least one ‘unfair’ practice, including cancelled orders, late payments, and unfavourable, unfair or unprofitable pricing.

Supermarkets rejecting produce over unreasonable demands, such as requiring a specific colour, size or shape, leading to waste or a lower price that does not cover costs, are also cited, as is no notice from buyers for changed terms.

Riverford said this was piling pressure on stretched growers, with 82% of respondents saying unfair supermarket practices were contributing to stress and poor mental health among the farming community.

The industry is calling for a single food supply chain regulator to protect growers and ensure fair treatment by supermarkets, and to address the “power imbalance” between the two.

A survey for the study found 76% of farmers believe the current supply chain regulatory system does not protect farmers from unfair supermarket practices, and is unfit for purpose.

Some 86 MPs have signed an Early Day Motion calling to merge the existing supply chain watchdogs, currently split across two government departments, into one stronger, more effective body.

More than 3,000 people have also written to their MPs in support of better regulation.