REVIEW BIG SUPERMARKETS DOMINANCE IN FOOD SUPPLY CHAIN

A review of the control big supermarkets wield in the prices paid for farm produce sourced in Northern Ireland is urgently required, East Londonderry Assembly member David McClarty has said. Mr. McClarty made his call following news that the Farm Fed Chickens processing plant at Coleraine is experiencing difficulties. He said: “There has been concern for some time about the power and influence supermarket giants have in the agric food sector. While Northern Ireland farmers and food processors initially welcomed the opportunity to establish links with them and provide locally grown produce both for the local and UK market, it quickly became clear that the supermarkets dictated a rigid and inflexible price control. “Local producers have been highlighting this issue for some considerable time but have felt powerless to do anything about it. “The same is true for food processors such as Farm Fed who were forced to shed employees a year ago in a bid to keep the company viable. Ironically, that was a measure aimed at protecting the jobs of the remaining workforce. “However, the company, like their suppliers in the rural community, have become victims of the ongoing and fiercely competitive battle for supremacy which has been fought out among the big players in the UK supermarket scene for the past number of years.” Mr McClarty claimed that prices paid to producers and food processors here have been kept low as supermarkets continue to compete against one another with little regard for those who are left to pick up the pieces further down the supply chain. He added: “The import of chickens from outside Northern Ireland is another major contributory factor in the difficulties facing businesses such as Farm Fed. “Management at Farm Fed have been working tirelessly to attract new orders in an extremely difficult market. “Any job losses will have an enormous impact on Coleraine which remains a high unemployment area and it will be particularly difficult for a large number of the workforce to find employment elsewhere. “The potential impact on numerous local farms who supply the plant is also a huge concern. “Farm Fed is family owned business which has served the town well for many years. I take this opportunity to highlight the efforts of staff and management to save the business. “I believe that the Government must now take seriously calls from the agricultural community and local food processors to examine the dominance of the big supermarkets in the agri food sector. “For too long suppliers have been held to ransom with the result that more and more are unable to remain viable, while, in stark contrast, the profits margins of the big supermarkets continue to increase.”

27 Jan 2006 by Editor 3277 comments