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Food industry consolidation- who suffers!

Last weekend saw the announcement of another mega merger in the food industry as the second and third biggest supermarkets revealed well developed plans to merge and challenge Tesco’s market leadership. As the graph shows, that would create two players with more than 30% market shares each, and it is a stated objective of the merger that they will reduce food prices and drive further savings out of supply chain costs and central overheads.

Consumers get to vote with their feet, but you don’t – and as the merged business flexes its muscles and extracts more value out of the supply chain for its milk, meat, eggs, potatoes etc. etc. farmers will ultimately pay the price. These moves, NEVER lead to more value to producers as the merged bigger business will press to reduce prices, reduce their number of suppliers, maybe push suppliers to close poorer performing plants- all of which impacts farmers businesses!

If you feel passionate about it mail your MP and respond to the Competition Commission website, if and when they ask for comments!

As farmers we need to make our voice heard and if you feel that protesting is a waste of your time, take note of what happened in the South West of England where the takeover/rescue of the Countrywide Farmers business by Mole Valley was blocked by the competition authorities because they agreed that it would reduce choice for the farmers in that area!

Joining Aspatria Farmers

We always welcome new farmer members and as well as talking to our team please feel free to complete the attached New Members Form and mail it to us with your cheque and we will handle it from there!

Aspatria Farmers | aspatriafarmers.co.uk
Station Works, Aspatria, Cumbria, CA7 3JW
info@aspatriafarmers.co.uk | 01697 320207 | Copyright 2018 Aspatria Farmers Ltd.