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Food for thought

There’s little doubt that life has rarely been tougher for European suppliers – but some industries are, it seems, prepared to offer a helping hand more readily than others.

Last week the UK's National Farmers Union (NFU), accused the nation’s largest supermarkets of treating suppliers “harshly” and “beating up” farmers and growers in an attempt to cut their procurement costs.

Of course, accusations of aggressive tactics from these behemoths are nothing new, but at a time when the consumer is feeling the pinch, the big supermarkets are now all actively jostling to position themselves as an ‘affordable’ alternative – to the undoubted benefit of the consumer and the considerable cost of the supplier.

"The NFU is very concerned that the major retailers, as part of a price war strategy to drive down the cost of food to their customers, are treating suppliers harshly," the union said. "We believe there is sufficient flexibility in the retailers' own margin to allow for price cuts to consumers which do not unfairly reduce the price paid to farmers and growers."

Whether the union’s warning has any impact is anyone’s guess – although with a number of supermarkets posting surprisingly good financial results in recent weeks, it must be said that a change of strategy is unlikely.

Suppliers will be hoping, however, that if the warning does little else, it will at least offer some food for thought.

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