Suffolk farmer says supermarkets “win every time” as growers squeezed by rising costs
He says supermarkets continue to set prices, leaving growers unable to recover rising costs.
A Suffolk farmer has accused supermarkets of “winning every time” as rising costs continue to squeeze growers without increasing farmgate prices.
Russell Abbott, who farms near Ipswich and is a member of East Anglian Farmers Unite, said farmers are unable to pass on rising production costs despite higher prices in shops.
He said fuel costs have doubled and fertiliser prices have risen significantly, but returns to farmers have not kept pace.
“We are price takers, not price makers,” he said. “We can’t push our costs onto the customer.”
“Public pays more, farmers don’t benefit”
Mr Abbott said while consumers may see higher prices at supermarkets, farmers often do not see any of that increase.
“The public pays more, but the farmer doesn’t get more,” he said.
He also raised concerns about heavily discounted supermarket promotions, which he said can undercut local producers.
“You see vegetables sold below the cost of production,” he said. “We simply can’t compete with that.”
Pressure on local producers
He said those pricing dynamics can have a knock-on effect on smaller operations, including farm shops.
“When supermarkets sell at those prices, we lose customers because we can’t sell below cost,” he said.
Industry concerns over fairness
The issue of fairness in the food supply chain has been raised repeatedly by farming groups, who argue that growers have limited negotiating power compared to large retailers.
Farmers are also facing wider pressures, including rising input costs, policy changes and unpredictable weather conditions affecting yields.
Mr Abbott said greater transparency around pricing and production costs would help address the imbalance.
“Someone needs to sit down with farmers and ask what it actually costs to produce food,” he said.
Calls for government intervention
He called for stronger government oversight of the supply chain, alongside broader support for the farming sector.
“We need action now,” he said. “Because at the moment, the system isn’t working for farmers.”
Government response
A Defra spokesperson said:
“We’re backing British farmers as part of a new era of partnership to create a productive, profitable and sustainable future for farming.
“We’ve listened to farmers and business owners across the country and have made changes to inheritance tax relief to protect more family farms.
“This is alongside delivering the largest nature-friendly farming budget in history, protecting farmers in trade deals, and making supply chains fairer to help secure the farming sector’s future and boost profitability.”
Background:
- We’ve increased the individual threshold from £1 million to £2.5 million.
- Couples with estates of up to £5m will now pay no inheritance tax on their estates. The allowance will be transferable between spouses and civil partners.
- It will also apply to widowers who have lost spouses or civil partners before the policy is introduced.
- This will halve the number of estates claiming Agricultural Property Relief (including those also claiming Business Property Relief) affected by the reforms, better targeting the relief.
British Retail Consortium response
Andrew Opie, Director of Food & Sustainability at the BRC, said:
“Food retailers source, and will continue to source, the majority of their food from the UK and are proud to support British agriculture. They are committed to supporting British farmers and have invested heavily in UK agriculture through partnerships, dedicated programmes and additional support. Supply chains are also strictly regulated by the Groceries Code Adjudicator to ensure suppliers are treated fairly.”