MLC economist Tony Fowler's latest farm to retail price spread data could come in useful if supermarkets need more evidence to help refute allegations of profiteering: his figures show a dramatic narrowing of the gap between farmers' returns and the prices shoppers pay, especially in the politically sensitive pigmeat sector. Even with beef, the story is not about significant producer price deflation. On average, cattle prices estimated by Fowler were only about 1% lower last month than in July 1999, less than half the drop in the retail price. The more typical trends across the market have been rising livestock values and cheaper meat at the checkout. Intensifying competition between retailers is one factor, although recent counter-seasonal spread narrowing has also been a clear sign of softening or patchy consumer demand prompting supermarket promotions in some categories, including instances of bogofs on beef rumps and on lamb and pork joints as well as on bacon. As usual, however, processors will claim they rather than the retailers are absorbing much of the margin pressure. {{MEAT }}