Showing posts with label supermarkets. Show all posts
Showing posts with label supermarkets. Show all posts

Thursday, June 14, 2012

Hypermarket nation trumps Danny Boyle's vision


Film director Danny Boyle’s central vision for the 2012 Olympic opening ceremony is a representation of idealised rural life, with cows and sheep grazing, and a ploughman at work. It is, said Boyle, “the green and pleasant land. It is something that still exists, and something that cries out to all of us like a childhood memory".

How ironic that in the same week as Boyle’s attempt at nostalgia was unveiled, a report was published showing that the food networks that support agriculture in this more traditional form are collapsing under pressure from the supermarkets and out-of-town development.

A report from the Council for the Protection of Rural England (CPRE), finds that "despite their critical importance to the health of our high streets, local economies and much loved landscapes, local food networks are under-recognised and poorly supported".

The report – from Field to Fork – shows that across England local food outlets serve an estimated 16.3 million customers a week and local food sales through independent outlets are worth  £2.7 billion a year to the economy, supporting over 100,000 jobs.

“They support diversity, distinctiveness and innovation in the food and farming sectors, broaden choice for shoppers, promote seasonality, reduce food miles and shape the character of towns and countryside".

But they are under continuous pressure and cracking under the strain. As supermarkets have expanded their share of the food market to 77% of the total, they have displaced food from the high street and the street market. Where smaller supermarkets are integrated into high streets, some diversity is maintained but where they move to giant out of town locations they destroy local food networks.

In spite of many pious promises to act on reports from retail experts, including the latest one from Mary Portas, out-of-town shopping developments are still increasing.

In 1980 there were fewer than 300 superstores and hypermarkets – by 2007 the number had soared to 1,500. And by late 2011, applications had been submitted or permission granted for a reported 44 million square feet of new supermarket development, equivalent to 572 football fields, 80% of it out of town.

Local councils occasionally attempt to deny planning permission, whereupon the supermarkets simply appeal to central government or pile on the pressure until agreement is given.

The result has been a collapse in traditional specialist food stores, such as butchers and greengrocers, from around 120,000 in the 1950s to 18,000 in the late 2000s. Town centre vacancy rates now average 14% and can be as high as 30%.

The reality in Britain is of farmers struggling to get a decent return for their produce from supermarket buyers who wield market power ruthlessly. And there is now a new drive to further industrialise farming in response to this (see my recent blog on this).

Whilst the supermarkets claim to create jobs, in 1998 the National Retail Planning Forum examined the effects on employment following the opening of 93 edge-of-town supermarkets and found a net average loss of 276 jobs in each area.

For shoppers there is no real price advantage at supermarkets. They all now promise to charge exactly the same as their competitors for most brands, and try to fool us that this is a benefit, not a cartel at work.

Boyle is right - the rural landscape is what most people cherish. But the corporates cherish only their bottom line. Their vision of England is a giant hypermarket fed by industrial farmers working to ferociously low profit margins, shoppers handing over all their cash in one location for goods with little health value and of dubious provenance, low paid workers with no fixed hours, called in to work at a moment's notice – and big fat profits all round!

That wouldn't make for a great Olympic spectacle and it is certainly not sustaining what is left of the “green and pleasant land”.

Penny Cole
Environment editor

Wednesday, March 09, 2011

Supermarkets cash in as food prices soar

Food price inflation is running at a faster rate in Britain than in the rest of Europe – and supermarkets, which control around three quarters of grocery sales, are accused of driving prices up faster than is justified by rising costs, to protect their profits.

According to the Organisation for Economic Co-operation and Development, food prices rose 6.3% in the year to the end of January, compared with an average of 2.8% for the EU and 2.6% across the 34 countries that make up the OECD.

Strangely enough, investment bank UBS says said UK consumers are suffering most from the pressures of food inflation. "Prices are rising in excess of justifiable cost increases," said Paul Donovan and Larry Hatheway, co-authors of a recent report. "The UK stands out as having the broadest range of food price increases."

World prices are also soaring. The UN Food and Agriculture Organisation's (FAO's) food price index averaged 236 points in February, a record, up 2.2% from January and rising for the eighth month in a row. The index highlights how food prices have taken off in alarming fashion in the last three years. In 2000 the index stood at 90 and did not break through 100 until 2004.

As one analyst put it: “What is extraordinary about this trend is that for more than two decades before 2008, there were no spikes of this magnitude. To be entering a second such spike within three years suggests that something has fundamentally changed in the global food situation.”

It was a more than doubling in the price of bread that put food beyond reach for many that helped trigger the wave of revolts in the Middle East and North Africa. Fearful that they will spread, governments around the world are assessing the likely political impact of food prices.

Campaigning organisations like the World Development Movement have joined the simplistic “blame the bankers” chorus, accusing them and hedge funds of speculating in food. But this is just one of the many interacting factors involved in the global crisis which can be summarised as peak soil and peak oil:

- thirty years of credit-financed rapid growth of global corporations have transformed much of agriculture into a destructive industrial process. Land, seed, machinery, oil-based fertilisers and pesticides are now subject to transnational corporate ownership and control

- exhaustion of the soil intensifies the demand for fossil-fuel based inputs and has accelerated the depletion of resources

- rapid depletion of the world’s supply of oil combined with concerns for the climate change it has produced has increased demand for alternatives. Profits from the production of biofuels now outcompetes the production of food

- Crop losses associated with weather extremes are increasing because of climate change

- the constant demand for consumption to absorb the products of economic growth has increased the standard of living in places like India and China

- capital’s need for unlimited quantities of cheap labour has driven population levels to rise to an estimated 9 billion in 2050-60.

The FAO is organising a series of seminars in an attempt to keep the lid on the rising anger. “FAO feels it is essential that countries consider their policy options and steer away from decisions that might exacerbate the situation," said deputy director-general Changchui He. "During the last food crisis, the situation was aggravated when some countries imposed export restrictions or engaged in panic buying."

But their solution is for more of the same. "Governments should focus on mitigating the impact of high food prices on the poor and at the same time need to take steps that favour investment in agriculture," he added. But the present framework is clearly unsustainable. A global network of farmers, processors, and distributors, planning the sustainable production of food according to the needs of the population and not profit has to be the way forward.

Gerry Gold

Economics editor