Supermarkets should ensure that food producers will not have to pay for the latest round of price cuts, farmers have said.
Producers of food said they are worried that supermarkets will not honour their promises to pay for the lower goods themselves and instead be told to cut gate prices, reports the Guardian.
The National Farmers’ Union (NFU) has met up with Tesco to get assurances that farmers will not be left to pay the price for promotions.
Carmen Suarez, NFU chief economist, stated that supermarkets have to tell the truth in these situations: “The supermarkets are telling us they will pay for price cuts out of their own money. But we have bitter experience of what happens in the medium to long term.”
Retailers including Tesco maintained that they have lowered a number of products simply in an effort to help consumers during a turbulent economic period.
Last week, Asda and Tesco both revealed that they were to start new price promotions, with the Wal-Mart owned firm having suggested that its milk is now at 2001 prices.
