Friends of the Earth has called on the Competition Commission to put much stricter rules in place to govern the way supermarkets deal with their suppliers, following new evidence from farmers.

The environmental group also wants to see an independent regulator to enforce the new rules. In a survey, more than one third of farmers responding told FoE that the prices paid by supermarkets barely covered their costs.

The group surveyed 100 farmers in October 2006 to find out how they were treated by the supermarkets they supplied. Just 33 farmers responded but the key findings suggested widespread abuse of power by the major retailers.

'Squeezed'

FoE supermarkets campaigner Sandra Bell said: "It is clear that farmers are still being squeezed so hard by the big supermarkets that they are struggling to make ends meet. As a result some are leaving the land. The Competition Commission now has the opportunity and the powers to put this relationship on a fairer footing. A failure to act now will be nothing short of a disaster for farmers and our countryside."

A spokesman for the British Retail Consortium, the organisation that represents the retailers, said: "Just 31 farmers responded and I don't believe the very selective findings of this extremely limited survey are representative of the good relationships which exist out there."

Related Links:

• Retailers must help lower salt levels, according to the National Consumer Council
• Farmers For Action urges NFU and others to join them in milk action