Valerie Elliott, Countryside Editor
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Few farmers are brave enough to speak publicly about sharp practices employed by supermarkets to keep prices down and boost profits. Many say that they operate in a climate of fear and risk losing business if they make any rumblings, let alone lodge any formal complaints.
Even mutterings from a “cauliflower grower from Essex” is insufficient anonymity because the person can so easily be traced by a retailer.
William Hudson, 50, has nothing to lose. He grew strawberries for nearly 20 years but has quit the business and has trained as a photographer.
He grew fruit on ten acres in Ardleigh, near Colchester, and supplied strawberries to all the main chains through a marketing agent. He was paid about £2.50 per kilogram but then was forced to pay half that amount to another company for packaging, labelling and transportation. He had no choice in this expense because using the other company was a condition of his supermarket.
He was even asked to pay up front to become a preferred supplier to a particular chain, yet was never given a firm contract stating how much he would be paid or how much fruit would be taken.
Retrospective discounts are another hidden charge dictated by the supermarkets. The company expects lower prices if it takes higher volume from a producer.
“Every three months the supermarket would count up the volume supplied by the grower and demand at least 3 per cent discount on price regardless of production costs,” he said. “This really is just buying the right to supply a supermarket. I was so angry I once asked the supermarket for an invoice for the discount and did not even get a reply. This practice is still going on.
“I know one company which supplies tomatoes and because the volume has increased recently the supermarket is demanding an extra 0.25 per cent discount. This is a very big firm and it is going to cost the grower an extra £10,000 to £20,000 a month. In other walks of life if you work hard and sell more you get the benefit but in the food chain it is always the supermarket that does best. If you want to do business with a supermarket these are the games you have to play.”
Mr Hudson said that he had been threatened by some buyers for raising questions. One said: “We don’t have to take your stock.”
He also put the spotlight on promotions, mainly “buy one, get one free” offers. “We used to see promotions as a way of getting rid of a glut of fruit. It’s not like that any more. Strawberry growers now have to pay for a promotion during Wimbledon fortnight. It’s not even the main strawberry season but we have to go along with the myth. For every punnet sold we have to supply the other free. Just remember when you see that sign in a store it is the farmer or grower paying for it.
“You get no say in it. I have a friend who is growing 25 acres of runner beans for one supermarket and last year was told that for six weeks in July and August the store was going to promote the vegetable. That cost him £100,000 and he made no profit. He was afraid to say anything in case it cost him this year’s order.”
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