The prime minister's promise at a farmers' meeting in Gloucestershire on Thursday night to find a long-term solution to the problem of low prices paid by the big five supermarkets to farmers struck a chord. With very few exceptions, it now costs farmers more to produce food than they can sell it for. This concentration of retail power is far greater than in the rest of the EU or in the US markets. Supermarkets here also exercise great power over their suppliers because they are so dominant in food sales. Manufacturers and producers cannot afford not to have a presence in their outlets, and supermarkets are able to dictate the terms.
Manufacturers typically carry the cost of any promotions.
But he will find it hard to pin it all on the supermarkets. Tesco declared itself surprised at his remarks. Asda's quick riposte was that it thought the Ministry of Agriculture was responsible for farming policy. Mr Blair's accusation is undermined by the findings of the competition commission, which as recently as last October cleared the supermarkets of profiteering. One supplier claimed to have been asked for cash payments from one supermarket chain three times in a few months.