"Shopping the supermarkets"

[WendyS]

Did anybody see this programme showing how Somerfields were putting a family lettuce grower out of business, and how supermarkets are reaping so much profit from milk that 3 dairy farmers a week are going out of business. With all the big profits supermarkets are making, Isn't it about time that they had their wings severely trimmed? They are screwing small producers into the ground.

[Buenchico]

I have to disagree.

The sole function of a business is to make a profit for their shareholders. (That's not just a personal statement, it's a legal one. Any company is legally obliged to put its shareholders first). If that means screwing their suppliers (and their customers), then so be it.

There will continue to be farmers who can make a profit from supplying the supermarkets. Those that can't do so deserve to go bust.

Chris

[heathfield]

This isn't a new thing. In the past, Marks & Spencer gained notoriety for placing a big contract with some clothing supplier. Often enough, the manufacturer would be fully committed in completing the M&S order over the next year or more, and would have had to refuse orders from anyone else. But if M&S found a substandard item or two, they'd simply cancel the contract there and then, leaving the supplier with nothing to sell, and no orders for months ahead.

Some years ago, Asda was actually importing milk from Normandy for sale in their supermarkets in the south of England, since it cost them less to do so.

It's ironic that supermarkets should be bragging about their support for Fairtrade products, yet at the same time are putting our producers out of business. How about applying Fairtrade principles to British suppliers?

[WendyS]

Heathfield, I couldn't agree more with you. Quite apart from trying to reduce food miles and supporting our growers and farmers at home, I worry about the power our supermarkets are able to exert. I'm sure many people wouldn't mind paying a few pence more for their foodstuffs to ensure that these producers continue to have a living. I believe the Monopolies Commision (or whatever its successor is) is planning to scrutinise the power of supermarkets. It will be interesting to see what they come up with (or will it be another whitewash as a result of their heavy lobbying.). And I don't altogether go along with Buenchico's theory. Of course I want supermarkets to make a profit. My pension scheme has money invested in them, and so are some of my savings in terms of unit trust ISA's but I don't want them to make such huge profits that small suppliers are forced out of business in the process. Big is not necessarily beautiful and many people in this country still work for very small companies.

[Reverandfunk]

It's a fact of life. Don't only compare supermarkets. What about car dealerships, big software companies, electronic retailers, the list is endless. And don't forget a lot of farmers get subsidies not to grow things! I'm afraid it's called a free market economy, if you dont like the big supermarkets drive 5 miles to a little farm shop and pay double the price for the same product.