Sainsbury's suppliers lose business

According to press reports, vegetable producers in the eastern counties of England are uncertain of their futures in the wake of a supplier review by Sainsbury's.

The Grower magazine reported that some long-term suppliers to the UK's third largest supermarket chain had lost their business, including Univeg.

The article states "if the rumours are true at least two other large scale grower/marketing concerns have lost their business with Sainsbury's".

Commenting specifically on the Univeg situation, a Sainsbury's statement said: This is not a decision that we have taken lightly. It follows a lengthy review process in which we have looked at our supplier base to identify which suppliers meet our customer needs both now and in the future.

"All aspects of production were assessed including capacity, service, quality and cost. This process was collaborative and we worked closely with Univeg throughout."

The article surmises that some of the English business will be taken up by imported produce. Part of the business has gone to a "Kent-based marketing group with an international trade in fresh produce", while some has gone to UK-based concerns.

One group, it said, is thought to have lost business worth £12 million a year. The main products hit are thought to be carrots, swede, parsnips and brassicas.