Globalisation can prove damaging to farmers
NFU Cymru has submitted evidence to the Welsh Affairs Committee's inquiry into the impact of globalisation on Wales and how this relates to food production and supply.
Commenting on the increasingly global market's effect on farmers, NFU Cymru President Dai Davies said, "Globalisation has exposed Welsh farmers to competition from foreign producers with lower costs and production standards. For example, Brazilian beef is not produced to the same high environmental or animal health and welfare standards as Welsh beef, neither does it have the same level of traceability, yet it is sold alongside Welsh beef in our supermarkets.
"Farmers in Wales operate to some of the highest standards of animal health welfare and traceability in the world, yet we import produce from countries whose practices would be illegal in Wales. The recent visit by the Food and Veterinary Office of the European Commission to Brazil in order to inspect Foot and Mouth controls as well as animal identification procedures was critical of what it found and identified shortcomings in their tracing system and Foot and Mouth Disease control measures.
"We are most concerned at the apparent lack of action in light of these findings. It is essential that the European Commission act and suspend imports of Brazilian beef until such a time as Brazilian beef production meets those standards that are demanded of our farmers.
Commenting on the effect of globalisation on major retailers, Mr Davies said, "Supermarkets have been major beneficiaries of globalisation, which has allowed them to increase the range of their supply base and drive down prices further."
"We need a stronger Supermarket Code of Practice, so that it covers the whole supply chain and includes retailers of all sizes, rather than just the relationship between the four largest supermarkets and their immediate suppliers. The code should also encompass processors and the food service sector and plants and flowers as well as grocery products,"
"NFU Cymru would like to see a properly functioning food chain, where fairness, transparency and sustainability are rewarded. Whilst we are not against 'big business', we are concerned about the abuse of power and lack of regard for the pressures on others in the supply chain. The dominant position of retailers in the market place is such that a single retailer can determine whether a supplier stays in business, which creates an imbalance in negotiating strength that supermarkets can, and do exploit."
