South African wine producers have warned that suppliers’ ethical concerns may be forgotten after Tesco changed its trading terms.
One supplier told Off Licence News that the firm’s demands are “a threat to [its] sustainability”.
The source said: “It’s not just about treating employees decently, we also have to remunerate them properly. In order to have something flowing back, we need some sort of return in the marketplace.”
UK market manager at Wines of Africa Jo Mason added: “When cost cuts are being considered they have an effect all the way down the supply chain, to the farm workers.”
Tesco refused to comment on any individual cases of negotiations with suppliers.
In the UK, National Farmers’ Union president Peter Kendall said supermarkets are “beating up” their suppliers.
