Supermarkets are abusing suppliers, claims NFU chief

The festive season is already giving the impression that there will be little cheer for the retail sector as consumers cut back on spending. However, the major food outlets are still muscling in on suppliers to maintain margins, according to industry sources.

In recent months abattoirs have been forced to pay appreciably higher ex-farm prices for cattle, sheep and pigs in the face of a continuing reduction in production, but those increases have not to any extent been reflected at supermarket checkouts: consumers are still getting a good deal.

The big problem from the farming perspective is the industry is fragmented and lacks bargaining power at the sharp end with the handful of serious buyers who dominate the market for the majority of food products.