Question Author
@ummmm
I watched Part 3 of Hugh F-W's War on Waste series on iPlayer, just the other day, now you mention it.
I'd be dismayed to learn that any farm could be fixed up with a juicy supermarket contract *and* still be receiving subsidy so, for the time being, let's not join the dots until we see proof.
As we saw, in Episode 2 of his prog, they destroy the stuff because the supermarket wouldn't (past tense, now) accept it but they never explicitly said that the supermarket *mandates* the destruction. Unless there's some exclusivity condition in their supply contract, actively preventing them selling the rejects (or the good stuff) to some competing retail outlet or, as suggested above, a processed food company, I see no reason why the farm would indulge in such waste by choice.
There may have been something muttered about cost of shipment exceeding the notional value of the rejects pile. That would make the choice for them and they're ploughed back in. :-(