Curb supermarket power says Clegg

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Farmers must do more to limit the powers of supermarkets, Lib Dem leader Nick Clegg has told the National Farmers' Union annual conference.

The largest firms were "trolleygarchs", he said, demanding an end to "threats, blacklisting and bully-boy tactics".

Producers had to promote alternatives such as farmers' markets and vegetable box delivery schemes, Mr Clegg added.

It has been proposed that an ombudsman should be appointed to handle disputes between suppliers and retailers.

At the conference in London Mr Clegg also called for a food trade inspectorate, with powers of investigation, to be set up.

He also urged changes to planning rules "to stop, not encourage, another generation of out-of-town stores springing up".

'Enough is enough'

Mr Clegg said: "To face up to supermarkets... you need more support.

"Supermarkets have an important role to play in our retail market. They generally do a good job in keeping prices for shoppers low.

"But enough is enough. Britain's food market is now controlled by a 'trolleygarchy' - with power and profit sewn up by the few biggest players.

"I'm a liberal. I believe the market should set prices for goods. When that drives efficiency from farmers, and benefits consumers, I welcome it.

"But if it is delivered by threats, blacklisting, and bully-boy tactics, if it delivers only profits for the retailer, not lower prices on the shelf, the market has failed."

This is a time of tremendous opportunity for Britain's farmers Nick Clegg, Lib Dems

Farmers have complained that they are being underpaid and bullied by the large supermarket chains.

Last week the Competition Commissioner recommended that an ombudsman be appointed to resolve disputes between retailers and suppliers.

They will have the power to award compensation and will uphold a stronger supermarket code of practice.

'Damning'

Mr Clegg said: "The Competition Commission's proposals just don't go far enough. They're only interested in increasing rivalry between supermarkets - even if that means we have to have hundreds more of them.

"Its remit didn't allow it to look fully at the rough deal primary producers are getting, even though they've seen some damning evidence.

"They do, at least, call for someone else to monitor the supply chain. It's got to happen."

Mr Clegg said farmers themselves had to do more to promote their produce by finding new outlets.

These should include farmers' markets, delivery schemes and opening up farms to visitors.

Mr Clegg said global demand for "quality food" was increasing, with the UK well placed to take advantage.

He said: "I am always struck in France by the emphasis put in every part of the country on 'produits regionaux' - regional specialities that get a special display case in every service station and supermarket, and are cherished by local people.

"Tourist agencies should help you to emulate that success here, and market your farms and your food.

"I'm talking about nothing less than a new life for the countryside. Because this is a time of tremendous opportunity for Britain's farmers."