Farming

Farmers and SMEs concerned by supermarket merger

Published

6 years ago

May 16, 2018

Merging?: Mike Coupe (L) with Judith McKenna (Walmart) and Roger Burney (Asda)

THE TENANT FARMERS ASSOCIATION (TFA) is calling for the Government to rethink its refusal to extend the remit of the Groceries Code Adjudicator (GCA) in light of the proposed merger between Asda and Sainsbury’s.

The planned merger, which will probably be referred to the Competition and Mergers Authority, would create the UK’s largest supermarket chain. However, a merged company would still not be as big as Tesco was only a couple of years ago, when that company had over 30% of the UK’s supermarket retail share.

The combined strength of the merged business poses a threat to suppliers, who could find their margins squeezed as the company would be able to depress prices paid to primary producers by manufacturers. That prospect was well flagged up during a BBC News interview with Sainsbury’s CEO Mike Coupe.

Mr Coupe told the BBC that there will be no store closures and no in-store staff redundancies, the inference that can be drawn is that jobs will go both in administration and back office operations, as well as logistics. The most likely way to deliver savings would be to increase the company’s margin or arrangements with producers and suppliers. Mr Coupe told the BBC that the merged company would have the potential to reduce prices through supply chain efficiencies.

Unfair practices within the retail supply chain led the Government to establish the GCA in 2013 to oversee direct supply contracts between retailers and suppliers. However it recently refused to extend the remit to include oversight of relationships further upstream between farmers and processors which could be impacted by the dominance of retailers.

TFA Chief Executive, George Dunn said “The merger between Asda and Sainsbury’s announced this week should cause the Government to rethink its strategy here. When Sainsbury’s boss Mike Coupe pledged to cut prices on everyday products by 10%, alarm bells rang out across the industry. It is suppliers who will be expected to shoulder the cost of these savings.

“There is a growing recognition that the food supply chain in the UK is dysfunctional and all too often it is the farming community which bears the brunt of the problems that this produces. Poor returns, last-minute changes in orders and specifications, unfair competition from abroad and poor labelling are all contributing to the pressures at farm level,” said Mr Dunn.

“Given that the vast majority of farm produce passes through at least one processor, if not more, before it hits supermarket shelves, the Adjudicator is therefore unable to consider the impact of retailer activity on many farmers,” said Mr Dunn.

Speaking in the House of Commons on Monday (Apr 30), Business Minister, Andrew Griffiths MP, referred to the work of the Groceries Code Adjudicator, but failed to address why the Government had decided to do nothing to protect primary suppliers. This was despite being challenged by Labour’s Shadow Agriculture Minister, David Drew MP on how the Government planned to tackle further potential supply chain abuse between farmers, processors and retailers.

“The TFA agrees that the GCA has had a positive impact on the groceries market by ensuring that there is a greater focus on the principles of fair trading. Retailers are now more aware of the need to ensure that they are not using their dominant position within the supply chain to engage in inappropriate practices. However the extent of the influence of the GCA is limited by its current legislative powers both in terms of the scope of its remit and its ways of working. The Government needs to act now to ensure that appropriate mechanisms are in place to guard against future abuse in the light of further concentration in the retail sector,” said Mr Dunn.

“Well-meaning initiatives aimed at improving supply chain relationships on a voluntary basis have failed to have the necessary traction across the board. We must deepen and broaden the GCA’s powers to allow it to look at the whole of the supply chain and not just direct supply contracts to ensure fairness in supply chains.”

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “A merger of this size will concentrate a lot of power in the hands of one giant company, and it’s important that power isn’t misused to coerce small suppliers into accepting unfair contracts and poor payment terms.

“Those at the top of Sainsbury’s and Asda should explain how they plan to merge these two supply chains fairly, and give reassurance that cost savings won’t be achieved simply by milking their small suppliers for all they’re worth.

“When investigating this proposed merger, the Competition and Markets Authority should be looking for cast-iron commitments that a positive standard will be set for working with smaller suppliers.”

FUW President Glyn Roberts said: “The proposed merger will raise many concerns for farmers given the huge power a new mega company could exert over the supply chain.

“If the government were to allow such a merger, we would need to see a step change in regulation of the supply chain and the powers of the Groceries Code Adjudicator, otherwise there is a risk of severe abuses taking place which further undermine farmers and suppliers.”

NFU Cymru President John Davies said: “NFU Cymru and the NFU will be examining the details of this proposed merger between Sainsbury’s and Asda carefully and the further concentration of retail power it creates within the food supply chain. We will also seek clarity on what the structure of any merger will be.

“We will be requesting a meeting with Sainsbury’s and Asda to ensure that the commitment of the new business to British sourcing will not be affected. First and foremost the NFU Cymru and the NFU will be seeking to understand what potential impact a merger would have on our members – both those farmers who are directly part of these supply chains and those who could be affected by wider connotations.

“With just over 31% of the market potentially being held by one company the Competition and Markets Authority (CMA) is likely to consider the impact on shoppers – but that must also take account of changes to supply arrangements that could give rise to a reduction in choice and availability over the long term. The impact of the whole supply chain, all the way down to farm level, needs to be carefully assessed.

“NFU Cymru and NFU support any investigation by the CMA and we would aim to feed into this if approached.”

Welsh Liberal Democrat Spokesperson for Agriculture Cllr William Powell said: “Welsh farmers will be justifiably concerned this merger will produce a supermarket that is simply too powerful, leaving suppliers at its mercy.

“Farmers already work with tight profit margins and face the multiple challenges of Brexit, including diminishing farm support and obstacles to accessing the vital EU Single Market. This merger must not be allowed to threaten them further.”

Farming

Pembrokeshire Agricultural Society in search for county’s top progressive farmers

Published

1 week ago

April 9, 2024

Tom Sinclair

IF you farm in Pembrokeshire and can demonstrate your farm’s use of the latest technological methods to promote progressive, sustainable agriculture then the Pembrokeshire Agricultural Society encourage you to enter the prestigious Baron de Rutzen Award.

Adam Thorne, Pembrokeshire County Show President, said, “We are looking for local Pembrokeshire farmers, under the age of 45, who can demonstrate their farm’s use of the latest technological methods to promote progressive, sustainable agriculture. They also need to show consideration for the environment and habitat sensitivity on their farm as well as present an aesthetically pleasing example of farming in the county. The competition welcomes all livestock and arable sectors to take part.”

Last year’s winners of the Award were Mark and Caroline Davies of Little Newcastle, Haverfordwest. They milk 230 pedigree Holsteins through a fully automated system. They rear their own replacements and also have a small beef enterprise. The farm is all grassland and they follow a strict reseeding and liming policy to optimise the yield from their multi-cut silage system. The couple place significant emphasis on animal health, husbandry and breeding to maximise the efficiency of their system.

Baron John Fredrick De Rutzen was President of Pembrokeshire Agricultural Society in 1936 and the Baron de Rutzen Trophy was produced in his memory. The third Baron served in the Welsh Guards and tragically died, aged 36, in 1944.

This year’s entrants must be fully practising farmers within the county of Pembrokeshire and were under the age of 45 years on 1 January 2024. Entries can either be by nomination or direct application online on the Pembrokeshire Agricultural Society website. Click here to apply: Baron de Rutzen Award | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org)

The closing date for nominations and applications is at noon on Wednesday, 29 May 2024.

Farming

Pembrokeshire Agricultural Society elect new president

Published

3 weeks ago

April 1, 2024

Tom Sinclair

ARABLE and beef farmer, Adam Thorne, has been unanimously elected to become the new President of Pembrokeshire Agricultural Society for the year ahead. Adam is the third generation of his family to hold the position.

During the Annual General Meeting of Pembrokeshire Agricultural Society, held last week on the Pembrokeshire Showground, Mr Tim John and his wife Margaret John were also voted in as Presidents elect.

Adam Thorne has had a long association with Pembrokeshire Agricultural Society. After visiting the show as a toddler, then helping show the family’s pedigree Herefords, his uncle got him into helping him with stewarding in his early teens. From there he progressed to being a Steward with his own section, Commercial Cattle, and then also the Butcher’s Lambs section.

From stewarding, Adam became involved with committee work, starting as an Executive and then on to the former Finance and General Purposes Committee. He has been Chairman of the Estates Committee for 12 years and is now a Board member and a Trustee.

Adam said, “I am proud of my long association with Pembrokeshire Agricultural Society. I am the third generation to now be President, following my late grandfather, Walter Thorne, my father, Robert Thorne and more recently my uncle, George Thorne. I am looking forward to my year in the prestigious position.”

Away from his work with the society, Adam runs the family’s arable and beef farm in Robeston West, Milford Haven. He has been heavily involved with Tiers Cross YFC from an early age, having been Club Secretary twice and Chairman. He has also sat on Pembrokeshire County YFC Committees and the Wales YFC Rural Affairs Committee.

The 2024 Pembrokeshire Agricultural Society officeholders, announced at the AGM, include Miss Ffion Edwards who was awarded the role of Ambassador at last year’s show. Ffion, a nurse from Maenclochog, has enjoyed many years of attending the county show and believes that there are so many good elements to it. Ffion has been a member of Llysyfran YFC for 15 years and enjoys every aspect of young farmers – trying new experiences, competing and travelling to name a few. Mrs Nicola Owen was also elected as the Honorary Treasurer.

Brian Jones, the outgoing Pembrokeshire Agricultural Society President, took the opportunity to thank everyone who had helped and supported him throughout his presidency. During his year as President, Brian and his wife Helen, raised a tremendous amount of money for various charities including the Pembrokeshire Agricultural Society, RABI, Tir Dewi and the DPJ Foundation. Brian also gave his assurances that Castell Howell will continue to sponsor the Food Hall for future years.

Pembrokeshire County Show, the largest county agricultural show in Wales, will be held over two days again this summer on 14 and 15 August. Everyone is invited to attend the celebration of rural life in the county.

Pictured (left to right): Ffion Edwards the Ambassador for 2024; Adam Thorne, President; Margaret and Tim John, the Presidents Elect.

Farming

£1,000 bursary award available to Pembrokeshire agricultural students

Published

1 month ago

March 14, 2024

Tom Sinclair

PEMBROKESHIRE Agricultural Society’s £1,000 Bursary Award is now open for applications from students studying agriculture, veterinary science, agricultural engineering, food technology, forestry or other subjects allied to agriculture.

The Student Bursary Award 2024 is available to students, from Pembrokeshire, who are currently studying or have been accepted to start their studies. They can apply for this financial support to assist with their chosen college or career path.

Last year’s winner of the award was Lottie Wilson from Hayscastle. Lottie was studying agriculture at the University of Nottingham when she applied for the bursary. When she is at home she is a general dairy farm worker as well as a lambing hand and a calving beef herd assistant. In 2021 she was the top agriculture student at Hartpury College.

Robert James, Chairman of the Society’s Bursary Committee said, “I would urge all Pembrokeshire students who study subjects that are clearly aligned to agriculture to apply for this bursary as it won’t only assist with your studies but will also give you great experiences such as undertaking an interview which is a key employment skill. It will also assist in your future career within the agriculture industry.”

“A panel of independent judges will draw up a short list of candidates who will be interviewed and the winning candidate will be asked to give a short presentation at a future meeting of the society’s show council.

“The standard of applications has always been exceptional which gives a lot of heart that there are a lot of very talented young people in our community. We are very much looking forward to receiving applications for this year’s bursary and hearing from the younger generation.”

Qualifying students must not have won the student bursary on a previous occasion, the applicant must be studying or has been accepted to study agriculture or allied subjects at a UK college or university at A-Level or higher and the applicant’s family home must be in Pembrokeshire.

The bursary is tax free and will be awarded to the student who, in the opinion of the panel of judges, has submitted the best dissertation on how the bursary will assist them to complete their course of study.

Further details and the entry form can be found online: Student Bursary Award | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org) or by calling the show office: 01437 764331. The closing date for applications is noon on Monday, 1 July 2024.