Supermarkets urged to pay farmers more for produce
BBCA Labour MP has called on supermarket chains to pay farmers more for their produce.
David Smith, who won his North Northumberland seat in Labour's 2024 landslide, said some farming businesses were making as little as one pence profit on some sales to retailers.
He is one of 46 MPs from his party to recently write to the major supermarkets calling for a better deal.
The British Retail Consortium, which represents Asda, Sainsburys, Tesco, Morrisons, Lidl and Aldi, insists they are not exploiting farmers.
In an open letter, the politicians said the big six chains could afford to offer higher prices to farmers as they made £5bn profit last year, while a typical 200 acre (81 hectare) family farm could only expect to bring in about £27,300 after expenses and taxes.
"What we were saying simply was please can you give better prices to farmers, but also to the processor and abattoirs," Smith said.
"But especially to farmers as some can be making just one pence profit on some of the produce they are selling.
"There are 750 holdings, and about 2,000 people working in farming in North Northumberland, so I hear a lot from farmers here that do feel squeezed."
One of the farmers supporting his campaign is John Renner, who stocks 120 beef cattle on 500 acres (202 hectares) of land in Belford in the North Northumberland constituency.
Mr Renner has run the business for 20 years with his wife, Helen, but says however much they improve quality and drive down costs, profits are not rising.
He would like supermarkets to pay more and stock more local produce.
"Are the supermarkets paying enough? I would say no, they're not," he said.
"For the last 15 years my wife and I have been driving down the cost of production of a kilogram of beef, but we are not seeing a greater profit out of that."
The British Retail Consortium said retailers knew they needed to pay a sustainable price to farmers.
"Given the pressure on British farmers at the moment, retailers are paying more for their produce," a spokesperson said.
"However, retailers are also facing additional costs and are working incredibly hard to limit price increases for consumers where many are struggling to afford the essentials."
Smith's push for a better deal comes after months of protests from farmers unhappy with the Labour government's policies on inheritance tax and support payments.
But he says his intervention comes after building links with farmers in his constituency, and says he is backing them on this and other issues.
"I have learned a lot about farming," he said.
"I still have more to learn, but I have been representing their interests to the government and that's what I have set out to do since day one."
John Renner says he remains concerned that Labour's inheritance tax changes could make it harder for his three children to take over the business in the future.
He also wants more support from the government for farms like his but appreciates his MP is seeking to understand the sector's concerns.
"He sees where the problems are," Mr Renner said.
"Maybe he doesn't understand the absolute basics; I think the national government doesn't understand the absolute basics.
"But he has been taking our points back to the government."