Is consumer power affecting the way businesses operate in the supply chain? The NFU’s chief food chain adviser Ruth Mason takes a closer look.
She writes:
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Over the course of the year, we have seen the agriculture sector take the media by storm as British farmers deal with volatile market conditions.
But what do customers want from the big retailers against the backdrop of worrying headlines?
We know that shoppers have a positive view of farmers with 68% of people in England and Wales sharing a favourable or very favourable view of UK farmers. Indeed, 85% of shoppers say they want supermarkets to sell more food from British farms.
Last week we saw Marks and Spencer sales within their food business grow by 0.2%. This may not make headline news but it bucks the trend of a deflating grocery market. Aldi continues to see growth from the market andbecame the first retailer to sign up to the NFU’s fruit and veg pledge to boost business conditions for British growers and suppliers.
So, does this mean that shoppers would prefer to support retailers who have more transparent and sustainable supply chains?
Throughout September and October the NFU held a total of 37 different meetings with all the major retailers. Our experts highlighted the need for transparency and sustainability to be implemented across supply chains. This basic set is key to our members business.
Although these changes may appear small they do add a greater degree of transparency for customers to make a choice
Many retailers within the last few weeks have listened to farmers and their customers and made changes to their supply chains. This has come in a range of offers.
Following conversations with the NFU Morrisons launched their Milk for Farmers range, which has been backed by customers and delivered £5 million back to farmers. Let’s hope customers sustain this level of support. In addition Aldi, Lidl and Asda have each committed to paying farmers a minimum of 28 pence-per-litre for milk. Morrisons has committed to 26 pence-per-litre.
The NFU has also been supportive of changes within the lamb industry with Sainsbury’s extending its British lamb season to January and Tesco stopping the sale of mixed origin packs of fresh lamb from the end of February 2016.
Although these changes may appear small they do add a greater degree of transparency for customers to make a choice over their purchases and farmers to feel their product is being marketed fairly.
While price remains a priority for customers it is also clear that Britishness is a significant piece in the jigsaw when it comes to their buying decisions. And now we’re seeing retailers beginning to recognise this.