NFU - Supermarkets are unbeatable (2)

From the Telegraph : The NFU economist quoted: Article also on farmer coops...

Seems that many farmer coops, like Dairy Farmers of Britain, and certainly like the two I remember my Dad joining and going bust in the 1980's, seem to consistently do two things

a) Provide well paid jobs for some Senior Managers

b) Enable farmers to get a few extra crumbs, but really just make it easier and more profitable for supermarkets as they no longer need to deal directly with farmers

c) Go bust within 3-10 years after losing a single contract

The NFU man says "It is futile to talk about a business that could do one over the supermarkets"

This is demonstrably false - they can be defeated, but only by disengaging from them and taking away their customers.

There are farms now who are "doing one over the supermarkets", by selling direct to and taking their customers, from CSA's to successful box schemes, farm shops to multiple natinal franchises like Rivernene and niche people like the Muslim Farmer - etc etc its not easy for sure, but when common sense breaks out these will be the new models?

STOP PRESS- FARM STORE, CAFE and TEA ROOMS HERE NOW OPEN HERE !

STOP PRESS 2 - AR UPDATE COMING SOON _ ALL FRONTS MOVING FORWARD....

Best Wishes

Tim

Saturday, 18 July 2009

NFU - Supermarkets are unbeatable

Farmers struggle to gang up against supermarkets

Farmers are unable to form big enough co-operatives to fend off the might of the big supermarkets, according to the National Farmers' Union (NFU).

By Louise Gray, Environment Correspondent
Published: 3:54PM BST 17 Jul 2009

The idea of smaller farmers ganging up in order to force retailers to give them a better price at the farm gate is already widespread in Europe.

In the UK it is gaining in popularity as farmers are forced to put down their prices as the supermarkets become more and more powerful.

However Tom Hind, head of economics at the NFU, said there is no way farmers can create big enough co-operatives to take on multinationals like Tesco or Sainsbury's.

Instead the union is calling for more regulation of the supply chain and a "supermarket ombudsman" to ensure farmers are able to get a better price.

Mr Hind said there are other ways farmers can get better prices by selling more locally, producing food for niche markets and setting up small co-operatives.

"The supermarkets are increasingly powerful both nationally and in the international market and I do not think there will ever be a situation where we could beat them," he said.