Tesco must treat suppliersbetter - UFU

Welcoming the publication of the report from the Grocery Code Adjudicator (GCA) into the buying practices of Tesco, UFU president, Ian Marshall said it was vital for all parties to work in mutual respect

Stating that the report had finally recognised problems highlighted by the UFU and others such as the unfair squeeze retailers place on suppliers he said: “The result of that pressure, as we see from this report, is that prices and suppliers’ margins are forced down.

“At a disadvantage, farmers pay the price because they are expected to deliver top-quality produce at prices below the cost of production.”

Recognising, for its part, the importance of Tesco and the other major retailers as the local industry’s biggest customers and the main route into the UK market, Mr Marshall said the report made it clear that, in the circumstances under investigation, Tesco’s power within the supply chain led to unfair practices which could never be acceptable.

“The findings on Tesco underline why the farming lobby was right in its campaign to secure a GCA with real teeth – and we also pressed successfully for those powers to be strengthened,” he said.

“Every business has to make a profit... but power and dominance in the food sector comes with responsibilities, and the GCA report has made that clear.

“I believe this will act as a warning to Tesco and other retailers that they can no longer exploit suppliers and not expect to be challenged.”