Supermarkets challenged to do more to support
British farmers
Supermarket responses
Supermarkets have significantly improved their environmental performance over
the last few years, introducing a number of initiatives and programmes under their
Corporate and Social Responsibility strategies.
However, they have tended to focus on reducing waste, water use, energy and
greenhouse gas emissions. While this is welcome, we would like to see
supermarkets do more to support local food and farming.
At the start of 2013 we launched an action for our supporters that asked
supermarkets what they were doing to:
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promote and expand the range of products for sale that are grown in ways
that enhance the character of our landscapes and that help wildlife to
thrive;
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make sure they treated their suppliers fairly and to pay British farmers and
producers a fair price that takes into account the cost of production;
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set and meet demanding targets for stocking local food. In our Vision for the
Future of Farming CPRE suggests 10% of food sold in a supermarket should
be sourced within 30 miles.
We had a tremendous response with almost 7,000 letters sent to the chief
executives of the seven big supermarkets, so thank you very much for your help.
We invited the supermarkets to provide statements setting out how they would
address the three issues – these are their responses.
Waitrose
Waitrose was the only supermarket to provide a statement for our website
specifically addressing our concerns.
Waitrose said it believed that it was vital to support UK farming for our future food
security and environmental well-being.
It provided a summary of the ways in which it supports British farmers and helps
the countryside to thrive.
All its dealings with suppliers are covered by its Waitrose Way corporate social
responsibility manifesto which sets out how it aims to do business. Waitrose aims
to be a ‘restorative retailer’, giving back more than it takes.
The Waitrose Way is made up of four pillars: Championing British, Treading Lightly,
Treating People Fairly and Living Well.
The farmers Waitrose trades with receive a market-leading price that always takes
into account the costs of production. Other key points in the Waitrose statement
included:
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All Waitrose meat, chicken, milk and eggs, with the exception of seasonal
New Zealand lamb, comes from the UK.
Since 1999 it has only sold free range eggs.
All Waitrose fresh pork is British - including bacon, sausages and ham.
It pioneered the sale of sustainable (rose?) veal from bull calves sourced
from its dairy herd.
70% of the vegetables it sold in 2012 were British - down slightly from the
2011 figure of 75% because of the atrocious UK summer and autumn
weather.
However, it relaxed specifications to sell fruit and vegetables which were
cosmetically imperfect or a different size than usual. This included weather
blemished and supersized apples and smaller potatoes, carrots, cauliflowers
and tomatoes.
It was the first supermarket to launch British corned beef.
It sells more than half of all the English wine that is produced.
It requires all its UK farmers to be members of LEAF - Linking Environment
and Farming - and also asks them to manage their farms as responsible
stewards of Britain’s countryside.
It has an active local and regional sourcing policy and stock products from
many small, local producers. Some of these supply only a single branch and
it is happy to support this micro approach.
You can also read the full statement provided by Waitrose.
Marks and Spencer
We were disappointed not to receive a statement from Marks and Spencer and we
weren’t sent a copy of the response from Marks and Spencer from those taking the
online action. However, information is available on the Marks and Spencer
website. Marks and Spencer launched Plan A in January 2007. Plan A aims to
combat climate change, reduce waste, use sustainable raw materials, trade
ethically, and help Marks and Spencer customers lead healthier lifestyles.
Originally it set out 100 commitments to achieve in 5 years. The number of
commitments has now been extended to 180 to achieve by 2015. Marks and
Spencer has set itself the goal of becoming the world's most sustainable major
retailer.
Find out more about Plan A:
http://plana.marksandspencer.com/about
Tesco
Tesco declined to provide a statement but it did agree to meet us to discuss our
concerns. Tesco made the following points in the response it sent to those
undertaking the online action.
Last year Tesco launched its Sustainable Farming Groups for Beef and Pork farmers
in the UK. These groups will be run by committees of farmers, and will guarantee
beef farmers an above market price for their meat, and a price linked to the cost
of feed for pork farmers. This will give participating farmers direct contracts
lasting up to 36 months, ensuring that they have more security, and that they have
a guaranteed fair price for their meat.
Tesco also has a Sustainable Dairy Group (TSDG) which has been running for a
number of years. The TSDG is a dedicated group of farmers with a direct contract
to supply Tesco that guarantees to pay above the cost of production, as calculated
by an independent cost tracker.
Tesco is also currently developing a pilot for the Tesco Supply Dairy Group (TSDG)
in collaboration with the RSPB, involving 12 TSDG panel farmers and Liverpool
University. This programme will seek to assess the existing nature value of
producer/farmer landholdings within the TSDG, and support the group to monitor
bird populations and implement best practice actions to maintain and improve
nature.
Tesco said it sells more than 4,000 local lines in its stores, and works with more
than 400 local suppliers across the UK. Local products stocked by Tesco include
cheeses, ice creams, biscuits, pies, sausages, eggs, yoghurts and meat. Tesco has
local sourcing teams based in five regional buying offices across the UK whose role
is to find local products, help suppliers to grow their businesses, offer technical
advice and sharing customer insight. In 2012 Tesco met its target of selling over
£1bn of local products in the UK.
To raise awareness of local products Tesco has created special Point of Sale
(information about a product on shelves, at tills etc), telling the story behind the
products and their producers, and applied local sourcing branding to a fleet of
delivery lorries. It has also launched a website dedicated to local foods which
allows customers to use their postcode to search for products produced in their
area.
Morrisons
We did not receive a statement from Morrisons but in the replies it sent to those
taking the online action it said it understood the importance of farming for both
food production and the natural environment. It recognised our landscapes look
the way they do because of today’s farmers and the generations before them. It
said the farmers it deals with attach much importance to their responsibility for
the health and character of the countryside.
Morrisons buys around £1 billion of British meat, produce and dairy products every
year. All Morrisons branded fresh meat is British and the majority is sourced
directly from British farmers and processed at its own abattoirs. Morrisons says no
other retailer can match this commitment.
Because of last year’s bad weather Morrisons adjusted its specifications to accept
smaller and weather-marked crops with the same eating quality. This helped
growers find a market for crops that might otherwise have been lost and meant its
customers could continue to buy British produce.
Morrison says its business model cuts out the middleman and places the emphasis
on long-term, direct relationships with farmers. It buys whole crops and whole
animals, which means producers get a fair price and are left with nothing to
offload.
Morrisons says it is widening the distribution of more locally sourced products such
as sausages, pies and cooked meats. In addition, it is looking to expand the range
of locally sourced food and drink in in its growing number of ‘M Local’ convenience
stores. It gave an example of residents in Tunbridge Wells voting for a local ale
they wanted to be stocked.
ASDA
ASDA did not provide a statement but said in its responses that it was committed
to helping build a long term future for British farming. It said it invested in
innovative and forward thinking agricultural practices through its ‘Farmlink’
schemes for beef, pork, lamb, calf and dairy produce. ASDA said it nurtures small
local suppliers to help create successful and profitable businesses.
ASDA was aware that local provenance was an important issue for its customers so
it has a team who find locally sourced brands. ASDA said it sells over 6,000 local
products - including local sausages, pies, jams, chutneys, cakes and cheese
produced by around 600 small local suppliers. ASDA said it is committed to
investing in this area and said its own label Chosen By You products in Scotland,
made by local suppliers, was evidence of this, using local Scottish producers who in
turn use only Scottish ingredients. ASDA are planning to roll this out to other parts
of the UK.
ASDA works with over 8,000 British beef farmers and over 5,000 British sheep
farmers. It uses the Red Tractor Scheme as a benchmark for quality and animal
welfare standards. All of ASDA’s own brand British meat now carries the Red
Tractor logo.
ASDA sources all its fresh milk from British dairy farms and has a number of
regional milk processing plants in Dumfries, Yorkshire and Cornwall.
ASDA has been highly commended by the RSPCA in its annual Good Business Awards
and was awarded the Good Dairy Award by Compassion in World Farming for the
welfare and sustainability measures it has put in place across its dairy supply chain
ASDA works closely with LEAF (Linking Environment and Farming) which promotes
environmentally responsible farming, and has been principal sponsor of LEAF’s
annual Open Farm Sunday event for four years.
Sainsbury’s
Sainsbury’s declined to provide a statement but in responding to those that
emailed said it was committed to stocking British products when they are in
season. Many of its products are 100% British all year round, including fresh
chicken, eggs and fresh milk.
It said it sells more British pears than any other retailer and sells a quarter of all
British apples, with 64 varieties available.
Sainsbury’s said its Development Groups and Crop Sustainability Groups help over
2,500 farmers it trades with to become more efficient and to make their
operations more sustainable in the long term.
Sainsbury’s was the major sponsor of the Diamond Jubilee Woods Project, working
closely with the Woodland Trust, donating £1.5m to plant 6 million trees by March
2013.
Sainsbury’s highlighted its initiative on dairy farming and said it recognised
concerns about the price being paid to farmers. It said it wanted to ensure that its
farmers receive a fair price for the milk they produce as well as to reward them
for outstanding animal welfare and environmental standards, and to enable them
to reinvest in their business for long term sustainability. In 2007 it launched the
Sainsbury's Dairy Development Group (SDDG) because it recognised that British
dairy farmers were under huge pressure and it understood that paying a fair price
was vital for the long term sustainability of the dairy industry. The 323 farmers in
this group have received a premium above the market price for the last five years
to reflect improvements that have been made to animal welfare and
environmental sustainability. Sainsbury’s has committed £1.2 million of funding to
14 projects run by farmers and other organisations associated with its Development
Groups and invested £40 million since the SDDG was established in 2007 in
advances in animal welfare and environmental standards, saving farmers over
£10m.
Last year the farmers Sainsbury’s trades with voted to adopt a unique and
transparent Cost of Production (COP) model, based on its farmers’ real costs, with
a profit margin, and this includes a quarterly review of feed, fuel and fertiliser
costs. This ensures that the most volatile elements of the COP will be reviewed
every 3 months and the price it pays its farmers will change to reflect this. The
price it currently pays to its farmers is 30.56 pence per litre and covers the real
COP. In addition to this there is an opportunity for farmers to earn a bonus per
litre of milk produced, for good animal welfare and environmental practices.
The Co-op
We did not receive a statement from the Co-op and we weren’t sent a copy of the
response it sent to those taking the online action. However, in its Ethical Policy
the Co-op says it aims to source regionally where there are proven sustainability
benefits and promotes produce from its own farms. It also commits to minimise the
environmental impact of the sourcing, manufacture, use and disposal of its ownbrand products and has introduced initiatives on reducing pesticide use. The Co-op
ensures all fresh products comply with relevant UK farm assurance standards as a
minimum.
Find out more about the Co-op’s environmental and purchasing policies:
www.co-operativefood.co.uk/ethics
May 2013
Campaign to Protect Rural England
5-11 Lavington Street
London
SE1 0NZ
Tel: 020 7981 2800
Email: info@cpre.org.uk
www.cpre.org.uk
Registered charity number: 1089685, registered company number: 4302973
Statement from Waitrose - January 2013
At Waitrose, we believe that it is vital to support UK farming for our future food
security and environmental well-being.
This is a summary of the ways in which Waitrose supports British farmers and helps
our countryside thrive.
Firstly, it is important to understand that Waitrose is a co-owned business - the food
division of the John Lewis Partnership. This means that ownership of the company is
shared between everyone who works here. We don’t have any external shareholders
focused on short term gain, instead we very much look to the long term in everything
we do - something that is very much appreciated by the farmers we work with.
All our dealings with suppliers are covered by our Waitrose Way corporate social
responsibility manifesto which, along with our company’s constitution, dictates how
we do business. Our aim is to be a restorative retailer, giving back more than we
take.
The Waitrose Way is made up of four pillars: Championing British, Treading Lightly,
Treating People Fairly and Living Well.
A great example of the Waitrose Way in action is our producer group system. We
were the first supermarket to pioneer producer groups amongst our farmers, which
means we take produce from farmers we know well and trust and we work with them
collaboratively. Our dairy farmers offer a typical example of this way of working.
Waitrose gets its liquid milk, both conventional and organic, from a pool of 80
farmers - we never buy on the open market - and we set the price we pay, not the
processor. This means that our farmers receive a market-leading price that always
takes into account the costs of production. We apply this principle across our
business.
The National Farmers Union recently said that ‘Waitrose makes a considerable
commitment to UK farmers’.
Here are a few other facts about our own label sourcing policies:
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All our meat, chicken milk and eggs, with the exception of seasonal New
Zealand lamb, comes from the UK.
Since 1999 we have only sold free range eggs.
All our fresh pork is British - including bacon, sausages and ham
We were the first supermarket to guarantee that all our fresh pork is British
and outdoor bred as a minimum standard - pigs get to sleep on fresh straw in
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light, airy barns. We also sell free-range pork, where the animals spend their
entire lives outside.
We pioneered the sale of sustainable veal from bull calves sourced out of our
dairy herd.
70% of the vegetables we sold in 2012 were British - down slightly from the
2011 figure of 75% because of the atrocious UK summer and autumn
weather.
However, we have reinforced our support for farmers and growers affected by
unseasonable weather by relaxing specifications to sell fruit and vegetables
which are cosmetically imperfect or a different size than usual, but still taste
great. This includes weather blemished and supersized apples and smaller
potatoes, carrots, cauliflowers and tomatoes.
We were the first supermarket to launch British corned beef.
We sell more than half of all the English wine that is produced.
We sell our own products from our farm at Leckford where we produce
mushrooms, apples, chicken, eggs, milk , flour, rapeseed oil and soon wine
from our own vineyard.
We support the Prince’s Charitable Foundation and the Duchy Originals
Future farming Programme.
We sponsor the Waitrose Chair of Sustainable Agriculture at Aberystwyth
University.
We fund key agricultural research through the Centre of Excellence for UK
Farming - CEUKF - which is looking at groundbreaking ways to make UK
agriculture more sustainable and profitable.
We’ve worked with many of our farmers for generations. We believe in
working closely together for mutual, long-term success. No other supermarket
works like this. Under what we call the Waitrose Farming Partnership, all our
farmers and growers have access to workshops and schemes to allow them
to become more efficient through knowledge transfer and save money on farm
supplies through membership of buying cooperative Anglia Farmers improving their profitability.
We require all our UK farmers to be members of LEAF - Linking Environment
and Farming - and also ask them to manage their farms as responsible
stewards of Britain’s countryside.
We have an active local and regional sourcing policy and stock products from
many small, local producers. Some of these supply only a single branch and
we’re happy to support this micro approach.
In addition we also helped establish the Prince’s Countryside Fund, which gives
grants to projects that help support the people who care for the countryside. It is
supported by a unique collaboration of businesses, including Waitrose, working
together to secure a sustainable future for British agriculture and the wider rural
economy.
Just before Christmas, the Prince’s Countryside Fund announced it will donate
£150,000 from its emergency fund to help farmers who are struggling through the
winter months as a result of this year’s extreme weather.