Comments on: Supermarkets slammed for trying Fair Trade. http://www.eridu.org.uk/blog/2007/12/19/supermarkets-slammed-for-trying-fair-trade/ Liberalism and general burblings Thu, 28 Aug 2008 03:26:17 +0000 http://wordpress.org/?v=2.6 By: tristan http://www.eridu.org.uk/blog/2007/12/19/supermarkets-slammed-for-trying-fair-trade/#comment-21752 tristan Wed, 02 Jan 2008 08:59:11 +0000 http://www.eridu.org.uk/blog/2007/12/19/supermarkets-slammed-for-trying-fair-trade/#comment-21752 Funny thing, everyone will buy Fair Trade produce, but again, there's little evidence that this extra cost actually reaches the producers. I do think what they did was wrong, but I think that part of what they were doing was trying to respond to public demand for a 'fair deal' for farmers. Of course, if we want that we should scrap all subsidies and tariffs. That's as fair as you can get. Funny thing, everyone will buy Fair Trade produce, but again, there’s little evidence that this extra cost actually reaches the producers.

I do think what they did was wrong, but I think that part of what they were doing was trying to respond to public demand for a ‘fair deal’ for farmers.

Of course, if we want that we should scrap all subsidies and tariffs. That’s as fair as you can get.

]]> By: Gordon http://www.eridu.org.uk/blog/2007/12/19/supermarkets-slammed-for-trying-fair-trade/#comment-20749 Gordon Wed, 19 Dec 2007 19:10:33 +0000 http://www.eridu.org.uk/blog/2007/12/19/supermarkets-slammed-for-trying-fair-trade/#comment-20749 I take it you refer to the OFT’s finding that the big four supermarkets and some processors have colluded to keep the price of dairy products artificially high and the subsequent payment by some of them of over £116 million in fines. As you say, the supermarkets claim they were raising prices to help farmers. Well they would, wouldn’t they? Being caught out running a cartel is potentially a public relations disaster. The big problem for them is that there is no evidence that the higher prices actually reached the farmers. Never mind; the supermarkets are past masters at spin so, crocodile tears flowing freely, they ‘discovered’ they had only done it to try and help. As a matter of interest, retailers’ gross margins on milk have soared over the last few years – up by nearly 400% in just over a decade – providing strong prima facie evidence that the supermarket sector is not nearly as competitive as they want the public to believe. I take it you refer to the OFT’s finding that the big four supermarkets and some processors have colluded to keep the price of dairy products artificially high and the subsequent payment by some of them of over £116 million in fines.

As you say, the supermarkets claim they were raising prices to help farmers. Well they would, wouldn’t they? Being caught out running a cartel is potentially a public relations disaster.

The big problem for them is that there is no evidence that the higher prices actually reached the farmers. Never mind; the supermarkets are past masters at spin so, crocodile tears flowing freely, they ‘discovered’ they had only done it to try and help.

As a matter of interest, retailers’ gross margins on milk have soared over the last few years – up by nearly 400% in just over a decade – providing strong prima facie evidence that the supermarket sector is not nearly as competitive as they want the public to believe.

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