MPs lobbying on behalf of British Farmers have urged the government to back the appointment of a supermarket ombudsman as the deadline for its recommendation looms.
Business secretary Peter Mandelson has until tomorrow (4 November), to respond to the recommendation from the Competition Commission (CC) to enrol a grocery market ombudsman.
Speaking in the House of Commons yesterday, Labour MP for Chorley, Lindsay Hoyle said the power of supermarkets was inhibiting farmers from making a profit.
Profits under pressure
He praised the resilience of British farmers in the face of outbreaks of foot-and-mouth disease and bluetongue but said supermarket power was a “persistent problem that severely limits the ability to maintain a viable farming business”.
He added: “Farmers are under constant pressure to reduce prices, often unable to make a profit.
“I believe the way to address these issues for the benefit of farmers and consumers alike is for the government to follow the advice of the CC and introduce a watchdog.”
Mr Hoyle criticised the big retailers for failing to sign up to a voluntary agreement, and said supermarkets had failed to demonstrate a will to address the issues in the supply chain.
Farming minister Jim Fitzpatrick said he would not be drawn on what the government’s decision might be but said the Department for Environment, Food and Rural Affairs would play an active role in discussions with the Department for Business Innovation and Skills.
