The huge supermarket chains are often seen by farmers as their number one enemy in the fight to get fair prices for their produce. But the tide could be about to turn with UK supermarket chain Waitrose signalling a willingness to work with farmers to ensure they get a fairer slice of the profits. Waitrose's MD Steve Esom says the grocery industry is largely in a situation where many primary producers face "a climate of fear" where honesty and fairness are poorly evident. This is born out by a recent UK survey showing 70% of farmers would not sign a supermarket contract if offered one. "Clearly there is a pressing need for supermarkets to adopt a more consistent approach when working with farmers."
Supplier Value Recognised. Esom also believes retailers need to realise competition is not the 'be all and end all' when it comes to suppliers. Rather they need to "recognise the value of our supply chains which are actually the backbone of our businesses." He also believes differentiation is the future of farming following a growing interest by consumers in food provenance issues. Even the most efficient producers struggle to compete on grounds of price alone - in a commodity-driven globalised market. "For differentiation to work, there clearly needs to be educated and committed support from the Govt, retailer and consumer."
