Suppliers face cap threat

SUPPLIERS FACE CAP THREAT

RURAL BUSINESSES supplying farmers have underestimated the changes to British agriculture under CAP reform, and could be threatened as the farming sector shifts to decoupling, says consultant The Andersons Centre.

The Andersons” Trade Survey of about 120 supply-sector companies revealed 44% believed CAP reform would have no serious impact on their businesses.

Andrew Westrope, partner in The Andersons Centre, said the shape of British farming would inevitably change under CAP reform. Supply firms such as agrochemical dealers and feed compounders needed to prepare their businesses for fewer customers. “The industry must take radical action. Those who don”t will be driven out of business.”