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07/06/2006
NFU to hold crisis talks with asda on milk and beef
The NFU is to hold crisis talks with ASDA, amid growing controversy over the company's dealings with its farmer suppliers.
The supermarket giant stands accused by farmers of undermining milk prices and selling beef imported from Brazil that does not comply with British farm assurance standards.
NFU Deputy President, Meurig Raymond, a mixed farmer from Pembrokeshire, is due to meet senior ASDA executives on Monday. He said he was extremely concerned at the supermarket's aggressive price-cutting policies on milk which were de-stabilising the milk market and putting the future of the dairy industry at risk.
Mr Raymond said, "ASDA has made much of its commitment to British farmers, and we are keen to work with them to develop their supply arrangements to the benefit both of ASDA customers and its farmer suppliers. But ASDA does need to understand, by slashing the price of a four pint container of milk, it has undermined the market for value-added, branded liquid milks being marketed by their supply group, Arla Foods. This in turn has been a major factor in the swinging price cuts that have this week been imposed on Arla/ASDA milk suppliers.
"Devaluing liquid milk, which is effectively what ASDA has done, is simply not compatible with achieving a profitable, high quality supply base, to which it is committed."
On the beef issue, Mr Raymond said, on the face of it, this was a clear case of double standards. He said, "ASDA has repeatedly assured us that all of the imported beef sold in their stores was reared to British farm assured standards and so did not represent unfair competition.
"Yet we now have clear evidence that ASDA has sold beef from Brazil that does not comply with British standards of farm assurance or traceability. In the light of concerns over the disease status of Brazilian beef and poor standards of animal identification, this must be a cause for genuine concern.
"I shall be asking for a clear commitment that this practice will stop immediately, and no further non-assured imported beef will be sold through ASDA stores. The confidence farmers ought to have in ASDA's commitment to its British farm supply base has been badly shaken by both of these issues. We urgently need to restore trust and transparency to the relationship if serious long-term damage is to be avoided."
The supermarket giant stands accused by farmers of undermining milk prices and selling beef imported from Brazil that does not comply with British farm assurance standards.
NFU Deputy President, Meurig Raymond, a mixed farmer from Pembrokeshire, is due to meet senior ASDA executives on Monday. He said he was extremely concerned at the supermarket's aggressive price-cutting policies on milk which were de-stabilising the milk market and putting the future of the dairy industry at risk.
Mr Raymond said, "ASDA has made much of its commitment to British farmers, and we are keen to work with them to develop their supply arrangements to the benefit both of ASDA customers and its farmer suppliers. But ASDA does need to understand, by slashing the price of a four pint container of milk, it has undermined the market for value-added, branded liquid milks being marketed by their supply group, Arla Foods. This in turn has been a major factor in the swinging price cuts that have this week been imposed on Arla/ASDA milk suppliers.
"Devaluing liquid milk, which is effectively what ASDA has done, is simply not compatible with achieving a profitable, high quality supply base, to which it is committed."
On the beef issue, Mr Raymond said, on the face of it, this was a clear case of double standards. He said, "ASDA has repeatedly assured us that all of the imported beef sold in their stores was reared to British farm assured standards and so did not represent unfair competition.
"Yet we now have clear evidence that ASDA has sold beef from Brazil that does not comply with British standards of farm assurance or traceability. In the light of concerns over the disease status of Brazilian beef and poor standards of animal identification, this must be a cause for genuine concern.
"I shall be asking for a clear commitment that this practice will stop immediately, and no further non-assured imported beef will be sold through ASDA stores. The confidence farmers ought to have in ASDA's commitment to its British farm supply base has been badly shaken by both of these issues. We urgently need to restore trust and transparency to the relationship if serious long-term damage is to be avoided."
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