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Europe Must Take Power of the Supermarkets Seriously says Nicholson

Conservative and Unionist MEP Jim Nicholson has said that a recent hearing in the European Parliament on the power of the supermarkets is hopefully the beginning of Europe starting to take the power of supermarkets against the producer and the consumer seriously.

In a statement Mr Nicholson said,

"The significant gap between what the farmer gets and what consumers pay has grown wider and wider in recent years and I hope that Europe is really beginning to recognise this problem. For far too long the rights of producers and consumers have been overlooked as supermarkets have taken more and more power and ever increasing profits for themselves.

"What we need is a mechanism to bring more accountability, transparency and fairness to the supply chain is absolutely essential especially when you have a small number of large supermarket chains who control a large part of the market.

"I am particularly looking forward to reading the report by the High Level Group on the dairy industry which will specifically look at the contractual relationship between farmers, processors and supermarkets. Many producers were being put under even greater pressure in recent times as exemplified by crisis and price fluctuations seen in the dairy sector over recent years.

"It also seems that other EU Member States are also beginning to take the issue seriously as a number of well known French supermarkets Leclerc, Auchan, Carrefour, Système U, Cora and Champion are all to be taken to commercial tribunals by the French state over clauses in their contracts imposed on suppliers. Reports have highlighted that the offending clauses are requirements for suppliers to take back or credit unsold stock and obligations to match falls in commodity prices."

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