Multiple supermarkets greater threat than CAP reform and WTO deal
12 August 2005
Jim Allister MEP has expressed disappointment that the Office of Fair Trading has concluded that the supermarket code of practice does not need strengthened and has given a commitment that the DUP will push the issue further both in Brussels and Westminster.
Jim Allister commented, “I am bitterly disappointed that the Office of Fair Trading did not come out with a different conclusion regarding the supermarket code of practice. The very nature of the OFT not getting many complaints from suppliers should have been a clear indication to the OFT that the code was not working. It is obvious that there is a fear within the processing sector that they will be black listed if they complain about supermarkets.
“I am concerned our major multiples are willing to sell food at prices which are lower than the cost of production simply to attract people into their stores. Supermarkets are currently bringing in small volumes of product at low prices and using these products to lower the price of the rest of their goods. This may be helping supermarket profits in the short term but will erode their local supply base of the longer term.
“In the short term, I believe that the sourcing policy by the large supermarkets is having a greater influence on farm gate prices than either WTO negotiations or the reform Common Agricultural Policy. We will be continuing to press for the supermarkets to look at more than profits when sourcing goods.”
