Farming minister says farmers must receive a fair share of the value of the food they produce but Bio-waste Spreader makes another point

In a letter to the Financial Times, representatives of Traidcraft Exchange Moore Stephens Food Advisory Sustain and the Tenant Farmers Association stressed the need for the UK government to deal with abusive practices along UK food supply chains.

These are recognised as being responsible for ruining otherwise viable farming and food businesses in the UK and all over the world and undermining the long-term interests of consumers. Currently, only the direct suppliers the UK’s large retailers are able to get protection via the Groceries Code Adjudicator. The writers welcomed the government’s recent consultation on fairness in supply and recommend a similar approach be applied to all food supply chains serving UK markets.

Chartered Accountants Moore Thompson report that following the consultation on the remit of the Groceries Code Adjudicator (GCA) a raft of new measures and rights will be introduced including offering a collaboration fund of up to £10 million by government and introducing compulsory milk contracts between producers and purchasers to help to protect dairy farmers. Using the contracts farmers and small producers will be able to clearly set out the price for the delivery of milk, the timing of deliveries, the duration of the contract, details of payment procedures, and arrangements for collecting and delivering raw milk. Business Minister Andrew Griffiths said the collaboration fund will open for applications later this year.

“This package of measures is designed to improve transparency and integrity within the food supply chain and to support collaborative business models where producers can come together to strengthen their position or work jointly on specific areas of work,” Farming Minister George Eustice explained, adding:

“Too often in the past, farmers have ended up being price takers and there have been too many instances where a lack of transparency in prices and charges by some processors has undermined the market. If we want a successful farming industry in the future then it is essential that we have properly functioning markets and that farmers receive a fair share of the value of the food they produce.”

Farming UK summarised: “A commitment has been made to work with the farming industry to explore improving transparency and access to prices along the supply chain, to help farmers and small producers see if they are getting a fair deal for their produce”.

However Private Eye’s Bio-Waste Spreader recently noted that the NFU’s letter to the Competition and Markets Authority about the Sainsbury/Asda merger warned of the dangers of putting a single supermarket in control of nearly a third of the UK’S food supplies.

The GCA 2013 Act cannot make any reference to ‘price’ and can only intervene between big retailers and their ‘direct suppliers’. The prices paid for produce can now continue to be driven down and supermarkets credit terms extended – as indeed Asda did last year; its clothing suppliers were warned that they would have to wait 50% longer to receive payment, as it was extending its terms from 60 to 90 days, no doubt causing many cash-flow problems.

Bio-Waste Spreader quotes Nielsen’s data: in 12 weeks to 21 April, when the marker share of aggressive discounters Aldi and Lidl rose by average nearly 9%, mid-priced supermarkets by 2%, premium retailers Waitrose and M&S saw near static or falling sales.

His verdict: consumers’ purchasing behaviour drives the process.

The late Andrew Hemming, vice-chair of Farmers for Action, disagreed.

 He said the consumer paid a fair price, but the supermarkets and other middlemen took an unfair share of the profit.

 

 

 

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Asda reduces the milk income of British producers, rather than their own significant profit margins

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Dairy farmer Kathleen Calvert writes:

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. . . Dairyco asked recently, “Will the growth of discounters keep the lid on retail milk prices”?

Asda’s CEO Andy Clarke is quite entitled to disclose that his company aims to further reduce the price gap with the discounters.

After all, large stores need to offer something that draws customers into their stores like smaller businesses have to do.

(Opposite: even non-food retail stores, pound shops, are stocking milk.)

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He does not mention, though, how Asda reduces customer-end basket prices by reducing the milk income of British producers, rather than reducing their own significant profit margins.

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Farm incomes, like the household budgets of consumers, have been stretched over the past five years yet with the average cost of production having remained well above the average farm gate price, despite any increases granted to producers.

No business can survive indefinitely on this basis, and while decisions are made by consumers over where to shop, decisions are also made by  dairy farmers over where to sell their milk.

These may be influenced to a great extent by fear of change, the level of risk and responsibility required, or the prospect of sanctuary, but they too are also driven by price.

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If large retailers find themselves competing with discounters as well as with potentially strong food export markets, while continually forcing British producers out of business, there will very soon be none of the cheap British milk left for them to supplement the ever-dwindling supplies of safe British food that helps draw customers into their stores.

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Farmers’ lives shortened to give company shareholders, high flying consultants and industry leaders a substantial income and maximise corporate profits

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A FDF adviser – also a dairy farmer – writes about the death of Andrew Hemming:

 

This is so sad, I heard him speak at a few protests and meetings he attended in our area and he came over as caring, dedicated to our cause, and inspirational. I am truly sorry that his life has been cut short at such an early age and send his family my heartfelt sympathy.

I fear the same for members of other equally dedicated and caring farming families who are also fighting desperately for survival. They also may be shortening their lives by working far harder than is reasonable, or safe for their health, just in order to feed animals, meet bills and survive in a ruthlessly competitive target driven industry where maximising profit is considered by some as more important than people or animals, and for what?

 

To give company shareholders, high flying consultants and industry leaders a substantial income and maximise corporate profits?

 

All we ask is control of our own destiny by earning a fair and honest living from the land we are responsible for, with income derived from producing a good source of staple food that people need, and to leave a realistic and sustainable future for our families and communities, which is what Andrew was working so hard to achieve.

 

We do not want this continual conflict, and I am certain that Andrew didn’t

 

It is 2 years since Asda wielded their massive financial power to intimidate Andrew, David Handley and the other FFA regional coordinators by taking them to court. Their crime was to help secure a fair price for our milk, which we are still seeking.

 

The NFU meanwhile stepped back and watched

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If the retailers were in the slightest bit concerned about dedicated farmers like Andrew Hemmings, or their families, they would not still be flaunting their massive corporate power in farmers’ faces aided by accolades like “grocer 33” for effectively and continually undercutting others, while using our milk as a loss leader or giving it away free with cereal etc.

 

We surely owe it to Andrew and his family to carry out what he set out to achieve.

Farmer and Euro MP Phil Bennion warns supermarkets to heed consumer pressure and pay a fair price for milk

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Food Security Concern will shortly hear about the rural apprenticeship scheme supported by MEP Phil Bennion. Whilst looking at his website another item was seen – a bonus – which will hearten readers who share our campaign for fair prices for food producers.

 

The MEP, an arable farmer and agronomist from Staffordshire, said the escalating protests also highlight the need for the government to introduce an Ofcom-style supermarket regulator.

His website noted that Asda recently raised the price it pays for milk to 27.5p per litre but it is still well below that paid by Co-op and Morrisons, who also recently raised their prices after farmers’ warnings that they faced bankruptcy.

Dr Bennion said: “I can understand the desperation and anger felt by dairy farmers who now have to sell milk for less than the price of bottled water. People have a right to peaceful protest.

“The crisis facing dairy farmers in this region is very deep. It has been accurately portrayed in The Archers on Radio 4, where David and Ruth Archer in a fictional Midlands county of Borsetshire are facing the possibility of selling their herd or going under after generations.

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“The behaviour by some supermarkets screwing down the milk price paid to farmers to impossible levels is outrageous . . .

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“We now see some supermarkets waking up as people power hits them where it hurts. The combination of farmer protests and consumers switching to the supermarkets that pay a fair price shows what can be achieved by modern communications.

“Consumers – including my wife – are now using networks like Facebook to share boycott campaigns and the offending supermarkets better look out. Given how many people are now on Facebook this kind of campaigning is already significant and could be decisive.

“But we also need to see more pro-active regulatory action. The voluntary approach is not enough . . .

 

“Supermarkets need continuity of supply and therefore long term contracts. However, dairy farmers’ costs such as grain are highly volatile. It is no-one’s interest for dairies and supermarkets to drive their suppliers into the ground when input costs are high.”

 

Read the whole article here: http://philbennion.org/en/article/2012/601971/supermarkets-must-heed-desperate-midlands-farmers-protests-over-milk-prices

 

We can’t afford to feed you any more on current farmgate prices!

 

Northern Ireland’s Farmers For Action were out in force last Thursday night, picketing an ASDA store in Strabane, Co Tyrone in support of better milk prices. They // have been receiving on average two pence per litre less than their GB counterparts since the spring.

 

 

FFA NI co-ordinator William Taylor, stated: “FFA are telling NI consumers, NI farmers’ customers, to shop elsewhere from their current target retailers, as well as alerting their shareholders about their total lack of Corporate Social Responsibility. The campaign will continue next week!” he promised.

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 TODAY’S PRESS RELEASE:

Asda Protests Continue

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Farmers For Action will be protesting outside Asda-Walmart in Cookstown tomorrow night.  The FFA Campaign looks set to continue due to the sympathetic response from the vast majority of shoppers being courteous to stop and take a leaflet.

Sean McAuley, FFA Steering Committee says, “There are two very important parts to this equation; one is the farmers needed to supply the food, the other is the general public our customers”.

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Expendable middle-men

 

Asda-Walmart and other large corporate retailers are expendable middle-men and should not be dictating farm gate prices through backdoor abuse of their huge purchasing power.

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Retailers should have Corporate Social Responsibility

 

They have a Corporate Social Responsibility to family farmers within the EU to ensure that they pay them a fair return for their work and effort directly or indirectly for milk/milk products, beef, lamb, vegetables and other commodities and FFA intend to see fair-play implemented!”

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Meanwhile FFA are continuing efforts behind the scenes on beef, lamb and many other commodity prices which currently are totally unacceptable and unsustainable.

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Those wishing to offer help in Omagh, are welcome to turn up on the night or contact 07909744624 or 07754475564. 56 Cashel Road, Macosquin, Coleraine, Co L’derry, N Ireland, BT51 4NU. Tel. 028 703 53579 / 028 703 43534  Fax 028 703 43419

 

Email  taylor.w@btconnect.com

 

MEP Phillip Bennion: Supermarkets must pay a fair price for milk

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Reproduced from ‘Our Solihull’ site:

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In a press release received today, energetic and knowledgeable West Midlands Euro MP, Phillip Bennion, says that consumers should follow farmers’ warnings and boycott supermarkets who fail to pay a fair price for local milk. He spoke to local farmers about the crisis yesterday and has been discussing these issues at European level.

British farmers already on the edge of bankruptcy erupted in protests after supermarkets refused to pay more for milk, causing dairies to try and cut the price they paid to farmers. Some supermarkets, notably Morrisons and Co-op, have now raised their wholesale prices paid for milk.

Dr Bennion, an arable farmer from Haunton near Tamworth with a doctorate in agronomy, says: “I can understand the desperation and anger felt by dairy farmers who now have to sell milk for less than the price of bottled water.

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Ofcom-style supermarket regulator needed with more pro-active regulatory action – the voluntary approach is not enough

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“The behaviour by some supermarkets screwing down the milk price paid to farmers to impossible levels is outrageous. This is yet more evidence of the need for an effective supermarket regulator, as advocated by the Liberal Democrats for years, especially the Cornish MP Andrew George.

“We now see some supermarkets waking up as people power hits them where it hurts. The combination of farmer protests and consumers switching to the supermarkets that pay a fair price shows what can be achieved by modern communications.”

He added that the recent protests also highlight the need for the government to introduce an Ofcom-style supermarket regulator using more pro-active regulatory action – the voluntary approach is not enough.

Dr Bennion added that dairy farmers in particular needed Cost of Production contracts which allow prices paid to vary:

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“Supermarkets need continuity of supply and therefore long term contracts. However, dairy farmers’ costs such as grain are highly volatile. It is no-one’s interest for dairies and supermarkets to drive their suppliers into the ground when input costs are high.”

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STOP PRESS

FFA website: “ASDA miraculously finds another 2ppl to add to its farmgate price for milk.  Although we welcome this further increase which takes their litre price to farmers to 29.5ppl, we still require them to commit that this money will be linked into a cost of production formula so that they can never again pull the price back.”

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Tomorrow, the NFU is organising a dairy summit in Westminster at 1pm

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Dairy farmers have vented their fury over cuts to milk prices at the Lanark and Great Yorkshire Shows, targeting Asda with their protests.

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Placards created by Yorkshire farming families were placed outside the Asda stand, following cuts to farmgate milk prices by the country’s major milk processors.

“These farmers are doing what they can to highlight the grave situation faced by liquid supplying dairy farmers across England, Wales and Scotland,” said Ian Potter, dairy quota broker at Ian Potter Associates.

Tesco, Sainsbury’s and Marks & Spencer operate payment models linked instead to on-farm costs of production. Waitrose also pays one of the highest milk prices.

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The public meeting will be held at Central Hall Westminster, Storey’s Gate, London, SW1H 9NH, to ensure that the future of this vital industry is secured 

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The main event is expected to run from 1pm to 3pm and between 1,500 to 2,000 dairy farmers from across the country are expected to join Peter Kendall, Minister for Agriculture and Food, Jim Paice, David Handley from Farmers for Action and other representatives from the dairy sector, to address the recent crippling milk price cuts and consider the action that is needed to bring about a sustainable dairy supply chain.

This summit aims to act as a catalyst for that reversal and to allow discussion about how we bring about wholesale change to the sector so that dairy farmers are not paid a price below the cost of production for their milk.

Ian Potter urges Tesco, Sainsburys and Marks & Spencer aligned liquid suppliers – who get a better price – to show solidarity and attend. 

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Only by increasing solidarity amongst milk producers and then across sectors will the food producers who sell to supermarkets ever get a fair deal.

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Bramley apple growers hit now

 

Bring on the adjudicator!

 

In recent months a number of growers in the south-east region have expressed their concern about the future of growing Bramley apples.

A survey covering 18 farms indicates that approximately 460 acres have been grubbed during the past year, with only 55 acres of new planting.

Too many Bramleys are discarded as ‘gradeouts’ and current selling prices are too low to obtain a profitable margin. 

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Supermarket price wars

 

Bramley apples are now part of the price wars which have appeared to devalue Birtish milk and cheese. Asda has reduced the price of Bramleys to £1/kg and Tesco is selling them at £1.05/kg. 

Adrian Barlow, chief executive of the trade association English Apples and Pears, points out that there is no alternative for Bramleys, so if the price was 5p per kg higher, the housewife would still purchase the same quantity. 

 

The FPJ reports: 

 

“In the parish of Marden, which was the heartland of Bramley production for years, three growers have grubbed their orchards and a fourth has reduced theirs by 20 acres. 

“The situation has become more urgent with the news last week that a supermarket price war seems to have broken out on Bramley apples. Asda has reduced its price to £1/kg and Tesco is selling them at £1.05/kg. 

“With EAP figures showing stocks of category I Bramleys running at 3,000 tonnes less than in January 2011, supplies are likely to run out prior to this year’s harvest. 

“Unlike dessert varieties, there is no competition for Bramleys on the shelf and if housewives decide to use the product, price is not the deciding factor. 

“If supermarkets wish to support the Bramley sector, they need to address the problem now, which would provide confidence for growers to re-plant the lost acreage in order to provide the volume required for a 12-month supply.

 

The picture is from the site of the English Apple Man: http://www.theenglishappleman.com/

 

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