Farming resurgent as demand exceedes supply

Food inflation has woken farmers' muscle that had become weak from disuse, writes Michael Wigan

For years stories have trickled out about retailers' brutalisation of their suppliers, offering lower prices each year, demanding loyalty fees and money for store refurbishments, threatening 'de-listing' to rack down prices further, forcing farmers to use their nominated packers and processors at above-market costs.

That was when supply exceeded demand. In summer 2007 the situation reversed.

Bad weather, bad harvests, the export of western-style foods to the increasingly affluent far east, climate change and total crop failures have altered the tone dramatically. Shortages improve supermarket buyers' manners.