Supermarkets wary of fair trade with farmers

04 February 1999

Supermarkets wary of fair trade with farmers

SUPERMARKETS have reacted cautiously to government plans for a code of conduct that would guarantee farmers a fair return from sales to retailers.

Nick Brown, the Agriculture Minister, said at the National Farmers Union annual conference in London yesterday (Wednesday) that a food industry group, made up of food experts, supermarkets, farmers and distributors, will be able to manage problems in the food chain – including reaching agreement over the code of conduct.

It will include representatives from the Ministry of Agriculture, the National Farmers Union, the Food and Drink Federation, the British Retail Consortium and the Institute of Grocery Distribution. The inaugural meeting takes place next week.

But both Tesco and Asda spokesmen were quoted in The Independent as less enthusiastic. One was concerned about the additional “layer” of bureaucracy introduced by the scheme, while the other was worried about “the attempt to rig the price”.

• The Independent 04/02/99 page 6
  
• The Daily Telegraph 04/02/99 page 12
  
• The Herald 04/02/99 page 27