UK: Supermarket chains put pressure on world’s poor
Supermarkets impose unacceptable costs and risks on suppliers, and their buying power may well have a negative impact on workers in developing countries, says a report
di Staff
Supermarkets impose unacceptable costs and risks on suppliers, and their buying power may well have a negative impact on workers in developing countries. This is the message that comes across from the preliminary findings of an investigation into the activities of UK?s large supermarket chains released on the 31st October by the Competition Commission.
The findings were welcomed by ActionAid Supermarkets Campaigner, Jenny Ricks who said: "It has been clear for a long time that supermarkets? spiralling power over their suppliers is having a negative impact on poor workers in developing countries. We are pleased that the CC has found that supermarkets impose unacceptable costs and risks on suppliers.?
ActionAid is now calling for an independent watchdog to curb abuses of supermarket buying power against producers and workers in developing countries.
The preliminary report states that the ?lack of competition in certain local markets not only disadvantages consumers in those areas but also allows retailers to weaken their offer to consumers nationally? and that ?the exercise of buyer power by certain grocery retailers?transfer(s) excessive risks and unexpected costs to suppliers.?
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