Just what you always expected….?

MAJOR supermarket chains have been attempting to squeeze farmers in an attempt to cut costs during the recession, a former buyer for Tesco has claimed, writes the WMN's Graeme Demianyk.

Michael Seymour, formerly the supermarket giant's buying manager for butter and fats, said large retailers were anxious to keep costs down an effort to retain customers and boost profits in straitened economic times.

Speaking in Cornwall, he said: "The economic climate is tough, and everyone wants their pound of flesh.

"Tesco is obsessed by margin, Asda is more interested in market share, and Morrisons just wants cash.

"It has been very aggressive for the past 12 to 15 months and they will be hammering suppliers on price."

Mr Seymour, who now runs the food business consultants Seymour Williams Associates, was explaining to Westcountry business leaders how suppliers could get their products into supermarkets and in front of other major buyers.

He was speaking to around 25 land agents and farmers on the rural leadership course run by Duchy College's Rural Business School.

Mr Seymour said the supermarkets were having to adapt to changing shopping habits caused by the recession.

As well as trading down to cheaper food and eating in more, hard-pressed consumers were also concerned about wastage, the environment and local sourcing. As a result, retailers were moving away from potentially wasteful buy-one-get-one-free promotions, often seen as wasteful, and seeking other ways to retain customers. Supermarkets wanted to make shopping easier for their customers, while also improving the bottom line, he went on.

However, there were still opportunities for innovative farmers to sell through the multiples, which offered tremendous opportunities for growth, he said. Local produce was still in strong demand, particularly in rural areas, but products must look good on the shelf, and be easy to handle with minimal wastage, he said.

A spokesman for Tesco dismissed the claim, saying: "We have thousands of suppliers, ranging from farmers and small companies delivering a single product directly to a few local stores, to large multinational companies whose products we stock in all our markets.

"Our customers want the best quality, choice and value for money. To provide this, we need strong relationships with reliable suppliers.

"We build long-term relationships with our suppliers, as we recognise that our success is linked to theirs."

A spokesman for Asda said it had a "fair, honest and open" relationship with suppliers and that it worked with them to provide the "best possible price" for customers.

A Morrisons spokesman said: "We are committed to working in partnership with our suppliers to ensure an outstanding offer to our customer in terms of quality, value, freshness and service. A good, positive relationship with our suppliers is vital to our success and we aim to be a loyal customer to our suppliers."