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UK farmers are making marginal profits for many items as food prices rise and supermarkets boast record take-offs.
An average block of cheese or bread produces less than a penny for farmers, and fruit growers don’t fare much better, making just 3p from every kilo of apples.
Food charity Sustain analyzed five everyday foods: apples, cheese, beefburgers, carrots and bread. He argues that because the margins are so small, farmers cannot invest in changing systems to more environmentally sustainable ones.
A report published on Friday found that a grain farmer spends 9.03p making a loaf of bread, yet makes a profit of just 0.09p despite a selling price of £1.14. For a loaf sold in an independent bakery, they make a profit of 0.5p.
He finds that for a packet of four beefburgers sold in a supermarket, the processor earns 10 times more profit than the beef farmer, who earns less than a penny per penny. For a 480g pack of mild cheddar that costs £2.50 in the supermarket, the cost to the dairy farmer is £1.48, and they make less than a penny in profit.
To fix underpayments for farmers, Sustain is calling on ministers to force supermarkets to publish more information about their supply chains and for the government to put regional infrastructure funds in place to invest in more infrastructure such as hubs and local processing that can reduce supply. chains. It also calls for legally binding supply chain codes of practice, which would force supermarkets to give farmers a fair deal.
Professor Lisa Jack of the University of Portsmouth, a researcher on the report, said: “The production and overhead costs of our food systems are very high, yet the profits there are could be shared more fairly along the supply chain, not just supporting affordable food. . but better incomes for those working in the industry.”
Vicky Hird, head of agriculture at Sustain, said: “It’s amazing how little of what we pay for our food goes into the hands of farmers and producers. Farmers risk a lot and work in difficult conditions to put food on our tables. We also expect them to care for our landscape and our nature – and we want them to do more of that in the future, including protecting nature and helping reduce food-based climate-changing greenhouse gas emissions by 30%. If they want to do that, they need more money in their business. That money should not flow out of the system into the coffers of food industry middlemen and supermarkets.
“Crucially, our report shows that paying farmers more doesn’t necessarily mean higher food prices, so retailers can’t use that excuse – paying farmers more would have little impact on retail prices for many products.”
Amy Fry, chief food business unit adviser at the National Farmers Union, said: “Farmers and producers need to have the confidence they need, work in a fair and transparent supply chain to meet shopper demand and protect the future of domestic food. production.”
The British Retail Consortium, which represents supermarkets, has been contacted for comment.
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