Supermarkets are forcing new potato prices down to the detriment of early growers, according to the British Potato Council.
The three big retailers - Asda, Tesco and Sainsbury - are selling Cornish new potatoes for between 48p/kg and 98p/kg. That compared with about £1.12/kg at the same time last year, said BPC market information manager, Rob Burrow.
Although contracted growers supplying supermarket packers were not being penalised by these low prices, the rest of the trade was, he said. "It is forcing other retail suppliers in wholesale markets to compete by reducing ex-farm prices rapidly."
Cornish farmers supplying the wholesale sector were receiving about £180-230/t compared with £450-600/t at the same time last year. Prices in Pembrokeshire ranged from £300-320/t for wholesale and up to £400/t to packers, compared with £600-650/t last season.
"It is absolutely ridiculous," said Gavin Robinson, BPC's Pembroke and Cornwall field manager. "The supermarkets are in early but not in the quantity they should be - demand is very slow."
Growers had moved about 1000t so far this season, compared with 1100t at the same time last year. Yields and quality were good, said Mr Burrow, with crops in Cornwall averaging 1t/ha (0.4t/acre) more than last season, at 14t/ha (5.7t/acre).
But poor prices meant growers were leaving crops in the ground longer, which would increase production. Mark Rowe, a potato farmer near Helston, in Cornwall, said wholesale markets were depressed, but packing prices depended on which retailer you were supplying.
"There is a general lack of confidence among growers, but we're more than happy with the deal we've done with Tesco. There is nobody that backs the Cornish season more."
The National Farmers' Union has warned that an attempt by discount retailer Lidl to drive down the farmgate price of milk runs against prevailing market forces. Farmers are campaigning for a significant increase in milk prices on the back of the slump in the value of the pound and stronger world commodity markets.
NFU milk committee chairman Terrig Morgan said: "Lidl's actions are completely unjustified and may result in producers having to sell below the cost of production."
Lidl has announced that it is cutting the price it pays milk suppliers by 1.5p/litre.
Mr Morgan it was appalling that the German-owned retailer was driving down prices at a time when market indicators support a push for a price rise. The European Union target price for milk is now effectively 22.5 pence/litre as a result of the weakening strength of the pound, he added. The NFU believes this is the level of price UK farmers should be receiving.
A union campaign for a price rise will continue throughout the summer but this could be jeopardised if Lidl succeeds in pushing prices down, Mr Morgan said. "We will be doing everything we can to ensure that does not happen."
From a paper by William Young, University of Leeds, UK and Richard Welford, University of Hong Kong, China:
Corporate social responsibility is important, especially regarding the issue of poor working conditions in suppliers' operations in developing countries, commonly referred to as 'sweatshops'. Some companies are implementing codes of conduct into supply chains with reference to issues such as labour conditions.
This paper examines these codes and develops a 'five star' rating system to benchmark companies based on their ethical trading activities. It reports on a survey of retailing brands operating in the UK and their ranking according to the 'five star' system. Results show that 90% of retailers with own-brand goods produced in developing countries either have no code of conduct, are developing one, or have one with no independent assurance of implementation. This communicates an apparent lack of concern by these retailers on this issue. The paper concludes that, for retailers, corporate social responsibility means going beyond benevolence to transparency of decisions and actions for consumer stakeholders.
Following a disappointing take up of the Soil Association's regional logo scheme, licensees are being reminded that they can use it for free. The flag logos were launched in October last year to distinguish British, English, Scottish, Welsh and Northern Irish organic from cheap foreign imports.
However both Tesco and Sainsbury said they did not welcome excess logos on packaging when the scheme was first launched. But an SA spokeswoman played down the reluctance by companies to use the logo saying that they "...would only be added when people rethink packaging"
Cornish tuna could be soon be on sale in supermarkets for the first time next year. "One supermarket chain has told me they will buy everything I can land,'' said Robin Turner, a trawler owner and fish merchant in Newlyn, Cornwall's largest fish landing port. If a study planned for this autumn suggests a substantial presence of tuna, Mr Turner will seek permission for commercial fishing from the Department of the Environment, Food and Rural Affairs (DEFRA).
The public's appetite for tuna in all its forms has increased dramatically despite increased concerns over global fish stocks particularly in the Indian Ocean. According to the Sea Fish Industry Authority in the past three years alone sales were up a third and are worth £30.7 million this year compared with £19.1 million in 2001. Amounts of fresh tuna sold are also up to 4,624 tonnes this year compared with 3,362 tonnes in 2001. Frozen tuna sales have increased even more sharply - worth £11.5 million this year compared with £3.7 million in 2001
Sainsburys was the first supermarket chain to set a target to obtain all its fish - fresh, canned and frozen - from sustainable fisheries by the end of the decade. It is also working with the Marine Stewardship Council to obtain sustainable tuna. A spokeswoman was unable to say how much fresh or frozen tuna were sold but said 9,000 tonnes of canned tuna were sold each week. Tescos say they sell two million cans a week and a spokesman said "We are very aware of the sustainability issues and all our tuna is skipjack or yellowfin tuna. We are aware of problems with the southern bluefin tuna in the Mediterranean and we avoid it."
