Supermarket boss calls for end to farmers vs retailers culture

Simon Roberts CEO of Sainsbury’s has called for an end to the polarisation of the food industry, pitching farmer against retailer. He wants to see change so that there is not the divide which exists currently, with farmers on one side and retailers on the other.

Simon Roberts was the guest speaker at the annual City Food and Drink Lecture in London last week and he warned that government policies will harm British food production, resulting in more imported food.

The UK food system is at a crossroads, with changes to farm support due to the challenges of climate change and biodiversity loss creating a perfect storm.

The concerns about the direction of policy, combined with the system of farm payment has discouraged farmers from investing and there are real concerns in the farming community around the unintended consequences for the future of UK food production. Mr Roberts called for a Minister of Food working across various departments and reporting directly to the Prime Minister.

He also said that Sainsbury’s would work harder to improve partnerships with farmers and suppliers and to improve its understanding of the pressure’s farmers face. He urged other supermarkets to do the same and come together on key policy areas.

NFU President Tom Bradshaw agreed with 95% of what Mr Roberts had said, explaining that farmers are angry with retailers as they make extortionate profits and undermine our industry. Their short-termism has hit farmers hard, and one member of the audience highlighted a retailer bragging that they had sold 1400 tonnes of carrots at 15p/kg over Christmas, and it was noted that Sainsbury’s was selling British potatoes for 7.6p /kg over Christmas 2022 (farmers have long memories).

This is a hot topic as more farmers protests are planned with ‘Save British Food’ announcing that it had joined forces with Kent based ‘Fairness for Farmers’ to organise a go-slow tractor demonstration to Parliament on the 25th of this month.

The groups are asking the government to block sub-standard imports and put an end to dishonest labelling, taking more action on food security. Retailers are becoming more worried about where food will come from as relying on Morocco and other countries has not worked due to weather events.

The agricultural press commented that a supermarket boss calling for a better working relationship with farmers indicated the fragility of UK agri-food at present. They felt that Simon Roberts played to his audience with a spiel that our industry has heard repeatedly.

Retailers have always been bullish about their position of power in the supply chain, a position which has served them and their share holders very well, but is the tide turning as just-in-time supply chains come under more pressure than ever before they ask?

The terrible conditions on many farms at present due to the weather is going to damage crop yield this year and whereas in the past supermarkets simply turn to Spain or Portugal for fruit and vegetables; weather conditions have impacted their production too.

Simon Roberts mentioned land use and government policy and there is no doubt that the lack of joined up thinking and silo mentality within governments are about to make changes which if left unchecked will have long lasting effects.

Farmers will reduce the risk of adverse weather and cost spikes on their businesses by choosing a guaranteed payment for carrying out environmental measures on a percentage of their farms rather than growing food.

Essex based UK Salads has been placed in administration and has ceased trading with the loss of 200 jobs. UK Salads supplied major retailers in this country and had a turnover of £69m but called in the administrators blaming low supermarket prices and poor margins.

This was not a small company operating in the margins and if they find challenging trading conditions which left it unable to meet its financial obligations, there will be more.

It follows Kent based fruit grower Bardsley England, the UK second largest apple supplier announcing plans to cease trading later this year. The relentless drive to keep prices low by supermarkets at a time of rising costs the reason for this decision.

The food industry is incredibly important to this country, it employs more than one in eight of those in work and our farmers deliver safe food which has high animal welfare standards, yet UK food prices are lower than in most comparable markets.

Farmers are certainly not rewarded for the quality of food they grow and produce and are under more pressure than ever before.

The push for environmental sustainability needs to be sensible and not driven by the zeal of activists who are often driven by a mixture of irrational thought and fear.

Who is calculating the cost of all this to the ordinary citizen? We know that the cost of meeting net zero will impact the most on the poorest people in our society and whilst the zealots want ever more; we are doing rather well in this country, not that you would know it by the noise they make and the influence they have in the media.

An analysis of official data show that last year Britain’s carbon emissions fell to levels not seen since 1879 and we are the first major economy to halve our carbon emissions in the period since 1990.

Emissions are falling at a rate faster than needed to achieve net zero by 2050 and on long term measures we are actually overachieving. The UK annual greenhouse emissions have fallen in twenty-five of the last 34 years according to the report.

We are achieving this gradual but impressive change at little cost to the consumer, but if we try and do more by employing damaging policies to farming as the Welsh government are proposing then there is a real cost; a cost that no one is willing to be honest about.

A gentleman from Washington (West Sussex) sent a letter in last week, unhappy about my criticism of First Minister of Wales Mark Drakeford. Fear not sir, it will not continue as he is stepping down, and I will of course allow the successor every chance to show what he intends to do.

I have criticised Mark Drakeford as he has led a government hell-bent on inflicting real damage on Welsh farms. This is a policy which takes a simplistic view that planting trees and punishing food production will save the planet, whereas as a vast global issue, planting the whole of Wales in trees would not be enough!

His government’s economic record is terrible as they run out of money and it seems that blaming Westminster, Farmers (for voting for Brexit) and anyone else is his answer. His Sustainable Farming Scheme will put some farmers out of business and that will severely affect communities and that will damage the Welsh language.

Socialists are meant to look after the poorer people in society, rather than create a whole lot more. The Welsh economy is weak, and it desperately needs new leadership and with that comes opportunity. I look forward to better leadership in Wales and a new leader will need to tackle Drakeford’s political legacy and make substantial changes as a matter of urgency.