Opposition to closer specific retailer relationships'
Suppliers stay
suspicious
Supermarkets are still regarded with suspicion even by many of the most progressive beef producers, though in other respects the farmers are comfortable with the demands of the modern consumer meat trade. This mixed message for the multiples emerges from the results of a survey of cattle suppliers by major processor Midland Meat Packers.
Among the 215 respondents from a random sample of roughly 400 producers, an overwhelming majority acknowledged a need to get closer to processors and consumer markets.
But nearly three quarters expressed opposition when asked about "closer specific retailer relationships".
Perhaps even this decisive rejection understates the hostility among cattle producers generally.
As the farmers polled were already direct deadweight suppliers to MMP, and relatively large scale at an average of about 140 finished cattle annually, they might have been expected to feel at ease in a market dominated by the multiples.
On the other hand, it is possible these farmers are rather like MMP itself the company is highly respected as a major force in the beef sector, its Northampton plant an industry showpiece, but has been cautious in dealings with the supermarkets.
It has acquired significant multiple business, a current example being the supply to Asda of the Big Saver oversize beef roasts which ABP Perth had hoped to provide (The Grocer, August 14, p24). Yet MMP has made a point of not promoting formal schemes linking itself and its livestock suppliers to particular supermarket chains.
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