THE Ulster Farmers' Union has claimed that food giant Tesco, which yesterday announced record profit levels, has the power to address many of the problems facing the local farming industry.
The food chain has reported underlying pre-tax profits of over £3 billion.
UFU President Graham Furey described Tesco's profit levels as 'staggering' and 'completely out of kilter with the profitability in the rest of the food supply chain.'
"To sa
y they are enjoying the 'lions share' of profits between farmers, processors and retailers would be an understatement," he continued.
"Tesco are clearly the most influential retailer in the UK food chain. With that position comes responsibility and I am calling on Tesco to be pro-active in securing a sustainable and profitable future for food producers in Northern Ireland. Consumers want local fresh produce, but farmers also need to be profitable to go forward with confidence."
Referring to Tesco's activities in Northern Ireland, Graham Furey said: "Tesco have been committed in Northern Ireland to developing a local supplier base and many food companies and farm businesses are supplying the retailer on what we hope will be a long term and mutually successful basis.
"Most recently Tesco have been working with Dale Farm to highlight the quality and variety of local dairy products available through their stores and we welcome this pro-active approach".
However the UFU says farm
profitability is still a major issue on which Tesco needs to be pro-active.
"If for example we look at the dairy sector, farmers in Northern Ireland have produced milk throughout the past winter at farm gate prices well below the cost of production," said Mr Furey.
"It is not simply enough for Tesco to market our local produce; they must also focus on the profitability and sustainability of the farm businesses who are supplying them with the produce on their shelves."
