Supermarkets Challenged Over Lamb Price

Scotland's farming union is challenging the major supermarkets over the crippling collapse in the price paid to farmers for lamb since the foot and mouth disease (FMD) outbreak; a period during which the retail price has actually increased.

NFUS is calling on supermarkets to live up to their responsibility to their suppliers and work with the whole supply chain to ensure Scotland's sheep farmers can get through the current financial crisis. The Union is hugely concerned that many farmers will decide to quit the industry unless the economics improve substantially. Marks and Spencer has now announced that the price it pays to some of its farmer suppliers will return to pre-FMD levels and NFUS believes all the major supermarkets must do at least the same as a first step towards a fairer supply chain and sustainable sheep industry.

In a letter sent to Asda, the Co-op, Morrison, Sainsbury's and Tesco, NFUS has highlighted figures from the Meat and Livestock Commission which show that the average retail price for lamb is 2.2% higher than it was before disease outbreak. Prices to farmers however have dropped by nearly a quarter (see notes for details).

Nigel Miller, NFUS Vice President and a sheep farmer from the Borders, said:

"The sheep industry is on its knees. Whilst the domestic foot and mouth restrictions have been lifted, export restrictions remain and the price, which was far too low before the outbreak, has now fallen through the floor. Farmers are increasingly angry and disillusioned at seeing a year's work come to nothing. It is unbelievable that supermarket shelf prices have actually risen during the same period that they have been financially hammered. We are demanding an explanation for that. We are making huge losses at the moment and I fear the current crisis could force many out of the industry.