Supermarkets warned over payments


 
Supermarkets have been urged by ministers to pay their suppliers faster so that they do not succumb to the credit crunch.

Environment Secretary Hilary Benn said that smaller companies depend on payments more than larger ones and the timing is often crucial.

He suggested that farmers and small firms are the backbone of the industry and therefore they should be given adequate support.

Head of the National Farmers’ Union’s food chain unit Lee Woodger also called on the government to ensure food is sourced locally.

“It would also be welcome if ministers emphasised the importance of sourcing food from Britain rather than abroad,” he said.

Benn recently said that the supply chain in Britain needs to be tough enough to withstand “shocks and crises”.

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