Labour MPs accuse supermarkets of unfair practices

A group of 46 Labour MPs has written a stinging letter to the bosses of the six leading supermarkets, accusing them of squeezing farmer profits and of misleading consumers about the provenance of their food purchases.

Organised by the Labour MP for Suffolk Coastal, Jenny Riddell-Carpenter, the letter expresses deep concern about the supermarkets’ commercial relationship with farmers and growers in the UK.

“Your recent public positioning as defenders of UK farmers stands in contrast to farmers’ and growers’ commercial dealings with you,” it reads.

See also: Riverford unveils ‘Farmers Against Farmwashing’ campaign

“Farmers have told many of the co-signed that their relationship with you is often characterised by your own pursuit of excessive profit, rather than – as you have claimed – a fair business relationship.”

The 46 Labour MPs note that, while Sainsbury’s, Asda, Tesco, Aldi, Lidl UK, and Morrisons have a combined pre-tax profit of more than £5bn, a typical 200-acre [80ha] arable family farm in the UK makes, on average, just £27,300 a year.

Farmers are essentially “price takers”, says the letter, often receiving just pennies of profit for the food they produce, while being expected to bear all of the food chain risk. 

“In a world where farmers and producers are struggling to make a living, and relying on government grants and subsidies so they can survive from one year to the next, this can’t be seen as fair or right,” it says.

‘Farmwashing’ 

The MPs also criticise the practice of “farmwashing” – the use of “misleading labelling” to suggest produce sold by supermarkets is grown or reared in the UK, when it is in fact often imported, or produced on so-called “mega-farms”.

“This is not only undermining family farms, but it is actively misleading customers,” says the letter, suggesting that more needs to be done to ensure farmers receive a fair deal, and  customers enjoy an honest portrayal of the products on sale in stores and online.

Retailer response 

But the British Retail Consortium (BRC), representing the supermarkets, insists it is playing fair, and  understands the importance of paying a sustainable price for farm produce.  

Andrew Opie, director of food and sustainability at the BRC, said: “Food retailers have long-standing relationships with farmers and suppliers.

“All contracts are overseen by independent adjudicators to ensure fairness on all sides.

“As the biggest buyers of British produce, retailers do everything they can to promote UK agriculture.

“Through clear on-package labelling and in-store signage, they go above and beyond legal requirements to help and promote British food.”

Farm sector comment

The NFU has welcomed the MPs’ letter, however, stressing that improving supply chain fairness is a critical area for the food and farming sector.

“I hope that we can work with MPs on this going forwards,” said NFU president Tom Bradshaw.

“However, if we are to ensure a thriving and resilient farming sector, then the very real threat from the changes to inheritance tax need to be addressed, and swiftly.

“We are still trying to secure a meeting with the chancellor, and I’d ask these MPs to further demonstrate their support by also pushing for this meeting.

“We need all parties involved to understand and recognise the value of farming. This means retailers supporting fair and transparent supply chains and government looking at a supportive legislative framework, including trade policy which doesn’t undermine us.”