29th December 2006
A call on Gloucestershire farmers to make their views known - Greens have called for the Competition Commission to restrict the growth of what has been called by various campaign groups, ‘Tescopoly’ (i).

Photo: One of the previous campaigns re Tesco in Stroud 

The Competition Commission is due in January to reveal it's 'emerging thinking' about its investigation into the market for the supply of groceries by retailers in the UK (ii).

Philip Booth, a spokesperson for Stroud District Green party said: "The last fifty years have seen major changes in the way that people buy their food. People used to shop in food markets or specialist food shops, like greengrocers, butchers and fishmongers. Now, more than 80 per cent of our grocery market goes to supermarkets - turning us into clone town Britain."

Philip Booth, a Stroud District councillor said: "The contribution of the UK food chain to climate change is large - one study estimates that it  could account for more than one fifth of total UK greenhouse gas emissions (iii). Tesco now controls 30% of the grocery market in the UK and announced over £2.2 billion in profits. Growing evidence indicates that Tesco's success is partly based on trading practices that are having serious consequences for suppliers, farmers and workers worldwide, local shops and the environment (iv)."

Philip Booth said: "I have written to the competition commission who are currently  putting together a report on Tesco, supporting the demands of Tescopoly, the anti-monopoly campaign for:

- A block on any new take-overs by Tesco or other major supermarkets
- Stronger planning policies to protect local shops and High Streets
- A legally binding supermarket code of practice to ensure that all  farmers, at home and overseas, are treated fairly.
- An independent watchdog with teeth to protect the interests of consumers, farmers and small retailers
- Rules to protect workers' rights at home and overseas."

Many other groups support 'Tescopoly'. Friends of the Earth, one of the supporters, has just produced new evidence on the way supermarkets deal with their suppliers (v). In a survey, more than one third of farmers responding told Friends of the Earth that the prices paid by supermarkets barely covered their costs.

Philip Booth said: "I am sure many Gloucestershire farmers have already made their views known to the Competition Commission but if they haven't I would urge them to do so. Farmers are being squeezed so hard by the big supermarkets that many are going out of business. Our Government has failed to redress the balance between these super-powerful retailers and the farmers that supply them. The Competition Commission now has the opportunity and the powers to put this relationship on a fairer footing.  A failure to act now will be nothing short of a disaster for farmers and our countryside (vi)."

Also email Gordon Brown re Barker Review on planning

Notes:

(i) http://www.tescopoly.org

(ii) http://www.competition-commission.gov.uk/inquiries/ref2006/grocery/core_timetable.htm

(iii) Checking out the Environment, Friends of the Earth Briefing, June 2005

(iv)  http://www.tescopoly.org/index.php?option=com_content&task=view&id=42&Itemid=68

(v) Full results of the survey are available at:
www.foe.co.uk/resource/media_briefing/farmer_survey06.pdf

(vi) The Competition Commission is currently investigating the big supermarkets due to suspicions that their behaviour may be distorting competition and harming consumer choice. Earlier this year the Commission confirmed that it would be looking at the way supermarkets treated their suppliers; and whether suppliers had to reduce levels of investment and innovation as a result. It also said it would examine the impact the Supermarket Code of Practice on relations between supermarkets and suppliers. The Code had been brought in following the last supermarkets inquiry in 2000 but has been slammed by suppliers for being ineffective. The current inquiry is a key opportunity to get better protection for suppliers but the Commission has recently stressed that it needs more evidence in order to act - fuelling fears that yet again the supermarkets will be let off the hook.  Greens hope that the Friends of the Earth evidence from their survey will help the Commission to take the necessary steps to halt abuse of supermarket power.