Greater returns can go to primary producers
20 April 2007
Jim Allister MEP has called on the supermarket giant Tesocs to give greater support to primary producers who supply the company. Jim Allister made the comments following the announcement that the supermarket giant made record profits of £2.21 billion.
Jim Allister commented, “The announcement this week from Tesco clearly show that the supermarket is making massive profits. Over the last 12 months the profits for the supermarket have jumped by a massive 16%.
Despite a large increase in the profits of Tescos, there has been no change in the price that farmers receive for the goods which they produce. Over the last 12 months farm input costs have increased significantly but this has not been reflected in farm gate prices. It is vital that Tesco recognise the need for both suppliers and primary producers to make a living and pass some of their profits down the supply chain.”
“Tescos have recently announced that they will be setting up contracts for liquid milk that reflect the cost of production. I believe that the supermarket should set prices for all products that reflect the cost of production.”
