Commission should take action against supermarkets

In a debate in the European Parliament today Scottish Euro MP Struan Stevenson called on the European Commission to take action against giant supermarket chains to control their "spiralling abuse of power." Speaking in Strasbourg, Struan Stevenson MEP said:

"A small number of supermarket chains now dominate the EU retailing sector, using their massive buying-power to force down prices paid to suppliers to unsustainable levels. In Scotland, this policy has allowed supermarket profits to soar at the expense of our farmers, many of whom, particularly in the dairy sector, have been forced out of business. Now the OFT (Office of Fair Trading) has produced a report suggesting that UK supermarket chains have been involved in a cartel, artificially depressing the price paid to producers. For example, until recently Scotland's dairy farmers were receiving only 17p per litre for their milk, below the cost of production, while it was selling off the supermarket shelves for above 50p per litre.

"Now with the sudden escalation of cereal prices worldwide, shoppers are facing price hikes of up to 40% in Scotland's supermarkets, despite the fact that the price of wheat has only risen by 10%. Once again the supermarket chains are taking advantage of market fluctuations to line their pockets.

"Some EU Member States have introduced national controls that seek to limit such abuse by supermarkets. However, large supermarket chains operate across national boundaries, making such legislation ineffective. It is time the European Commission launched a thorough investigation into the way supermarkets have abused their dominant position in the marketplace, looking for ways in which the interests of consumers and producers can be protected against this grossly unfair profiteering by the supermarket giants."