A Liberal Democrat MP has hit out at Tesco, claiming it is incredible that the supermarket’s profits was almost 50 per cent of the £3.6 billion generated by British farmers.

Andrew George MP, Liberal Democrat food and rural affairs spokesman, claimed that the UK’s biggest food retailer had pushed up the price of fresh food to shoppers but refused to pay higher prices for supplies.

He said: “ In such a tight market it is not the shareholders or senior executives who are suffering. It’s the farmers’ incomes that are being squeezed.

“Over the last 20 years there has been a consistent increase in the retail price of produce charged to consumers, but over the same period farm gate prices have been pegged.”

Green campaign group echoed his comments who accused Tesco of treating farmers unfairly.

However, the Consumers’ Association sprang to his defence. A spokesman said: “Tesco profits are not bad for consumers.” It declared the grocery business generally competitive and urged independent retailers to do a better job rather than cry foul.”

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