How Can Farmers Get A Fairer Deal From the Supermarkets to Be Able to Afford Greener Technology?

How Can Farmers Get A Fairer Deal From the Supermarkets to Be Able to Afford Greener Technology?

Morrisons - How Can Farmers Get A Fairer Deal From the Supermarkets to Be Able to Afford Greener Technology?

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More than 70% of the Uk's grocery store is in the hands of the "big four" supermarket chains (Tesco, Sainsbury, Asda and Morrisons). That means they are the most likely customers for overseas producers and it gives them enormous buying power. With it comes the quality to force down prices for farmers and farm workers.

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Of course, consumers play their part by expecting to buy food cheaply and because it's a cut-throat company the retailers respond. These two stories from African and Costa Rica, or similar ones, will be familiar to many of us:

"I get 378 Rand [£32.50] pay every two weeks. I can't afford school fees for my daughter or go to school functions or buy school uniforms" Tawana, a "permanent casual" labourer on a pear farm supplying Tesco (source ActionAid)

"They called us all to a meeting and they said that we would all be laid off the next day. They then rehired us for nearly half the wages." - Costa Rican banana laborer on a plantation supplying Tesco (source ActionAid)

The pressure on suppliers to deliver more for less is passed on to workers in the form of low wages, job insecurity and poor working conditions. Nearby the world, farm revenue is plummeting, pushing farmers off the land and into destitution. Workers and farmers are not the only ones who are under pressure - before it gets to the supermarket shelves food has to be processed, conveyable and in some cases packaged.

Take the example of the price of a pack of cashew nuts - the price includes the shares of the farmer (15%), processing workers (1%) processing company (5%), transport/wastage (2%), Uk importer (12%), roaster/salter company (20%) and ultimately Supermarkets (45%). (Information from ActionAid 2007)

It's naturally an unbalanced and loaded trading relationship and as these figures demonstrate most of what we pay for food goes to the non-farmers in the chain. Agreeing to an online article by Corporatewatch even in the Uk farmers undoubtedly receive only 9p of every £1 spent on food by consumers.

The article demonstrates that most of the money in the food theory goes into the pockets of fellowships in the processing and retailing secotrs, which are dominated by large multinational food corporations like Nestle, Unilever and Altria (Kraft Foods) and the big supermarkets like Carrefour, Tesco and Asda? Wal-Mart.

It's inevitable that this model of food provision is unsustainable. It leads to imbalances such as the mountains of food that are thrown away or wasted in rich nations while people continue to starve across the rest of the planet because the centralisation of food sales straight through large retail units doesn't list for need. It also means small farmers across the world are under pressure to exploit their land to the maximum to compete with larger and more powerful global agribusinesses.

If the smaller farmers have no help, such as passage to safe, natural biopesticides and yield enhancers, or the financial resources to buy them, or passage to training in integrated pest management and sustainable farming methods, they face ruining the fertility of the land on which they depend for a living. This state of affairs appals the Ceo of one of the world's largest fellowships researching and developing the new low-chem agricultural products such as biopesticides.

He says it is scandalous that in such a diverse and rich world so many people still suffer malnutrition and starvation and that lack of the quality to spend and of resources mean that many developing world farmers are faced with an unacceptable selection in the middle of producing sufficient food and draining their land of precious goodness in the effort to do so.

Yet it doesn't have to be this way. In 2007 Tradecraft reported that the Co-op swapped all its 'own brand' chocolate to Fairtrade and saw its sales rise by 30% approximately immediately

In January 2010 the possibility of creating a Supermarket Watchdog was raised again - more than two years after the Competition Commission advised that there was an urgent need to generate a fair food chain for Uk and overseas farmers, workers and consumers.

No matter who forms the next Government after the Uk's 2010 election, the query is whether the politicians will have the political will and the power to stand up to the power of the food industry's supermarkets and powerful multinationals.

Copyright (c) 2010 Alison Withers

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