Cornwall MPs say supermarket giants are morally failing farmers

Person doing grocery shopping
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Three Cornish MPs are among those who have written to the CEOs of six major supermarkets demanding that they treat farmers more fairly, both morally and commercially. Perran Moon, Anna Gelderd and Noah Law are among 46 Labour MPs who have signed a letter to the bosses of Sainsbury, Asda, Tesco, Aldi, Lidl UK and Morrison.

The letter states: "Your recent public positioning as defenders of UK farmers stands in contrast to farmers' and growers' commercial dealing with you. Farmers have told many of us that their relationship with you is often characterised by your own pursuit of excessive profit, rather than - as you claim - a fair business relationship."

The MPs state that at a time when British farming is in crisis, the industry is "rightly demanding" a better deal from the supermarket giants. "Over the last year alone, your businesses combined made a total pre-tax profit of more than £5 billion," the letter continues. "Yet a typical 200-acre arable family farm in the UK makes just £27,400 in profit. In a world where farmers and producers are struggling to make a living, and relying on Government grants and subsidies so they can survive from one year to the next, this can't be seen as fair or right."

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The MPs say that they're greatly concerned that the UK's supermarkets are failing in their "moral and commercial obligations to our farmers".

They also highlighted their concern about "farmwashing". The MP tell the CEOs: "Misleading labelling is actively suggesting that produce sold in many of your supermarkets is grown or reared in the UK when it is in fact often imported or produced in mega-farms that masquerade as small family farms. This is not only undermining family farms, it is actively misleading customers."

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Mr Moon, the MP for Camborne, Redruth and Hayle, added: "The 'Big 6’ supermarkets are failing our farmers. It isn't right or fair that farmers often receive 1p profit from the food they produce, whilst these supermarkets have pursued excessive profits. They’ve forced down the value of farm produce and misled customers with farmwashing."

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The NFU has welcomed the letter. However, it also wants MPs to address farmers' concerns about changes to inheritance tax. Its president Tom Bradshaw said: "I hope that we can work with MPs on this going forwards. However, if we are to ensure a thriving and resilient farming sector, then the very real threat from the changes to inheritance tax need to be addressed and swiftly.

“We need all parties involved to understand and recognise the value of farming. This means retailers supporting fair and transparent supply chains and government looking at a supportive legislative framework, including trade policy which doesn’t undermine us.”

The British Retail Consortium (BRC), which represents the supermarkets, insists it is playing fair. Andrew Opie, its director of food and sustainability, told Farmers Weekly: “Food retailers have long-standing relationships with farmers and suppliers. All contracts are overseen by independent adjudicators to ensure fairness on all sides.

“As the biggest buyers of British produce, retailers do everything they can to promote UK agriculture. Through clear on-package labelling and in-store signage, they go above and beyond legal requirements to help and promote British food.”