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ASDA(WALMART) made to explain beef sourcing and milk price

PORKER

Well-known member
Friday, June 16, 2006

Supermarkets
14/06/2006 - ASDA made to explain beef sourcing and milk price


The NFU has gained assurances from ASDA on beef sourcing and milk price after a senior NFU team met with the retailer to discuss policies on Monday.

ASDA assured the NFU the use of non-assured Brazilian beef was a mistake and not a deliberate act.

ASDA was clear about its long term strategy stating the “ASDA brand would be British”. ASDA also said it was committed to equal production standards, full traceability & environmental responsibility when sourcing imported beef in the future.

Meurig Raymond, deputy president of the NFU said “ASDA’s behaviour had unfortunately undermined the confidence and trust of British livestock and dairy farmers, but let us hope that following this meeting confidence can be restored.

“The NFU has invited ASDA to work together, as we have with other retailers, to build a credible supply chain where all parties can work responsibly.”

Thomas Binns, chairman of the NFU livestock board, said: “I was disappointed to learn that ASDA continue to differentiate themselves first and foremost as the customers champion for price.

“Despite the empty promises made at previous meetings, I believe there is a genuine commitment from the ASDA team to establish a responsible red meat supply chain.”

The NFU livestock team will meet ASDA's commercial and agricultural team at the end of the summer to assess progress.

In relation to milk prices, the NFU called on ASDA to reverse its decision to reduce retail prices. They were also asked to explain the reasons why the price paid to 550 ASDA suppliers had recently been reduced – a move that ran against the spirit of the NFU’s Vision for the dairy industry.

Gwyn Jones, chairman of the NFU dairy board, said: “We have always maintained ASDA should be held responsible for the price received by its producers. Questions had to be asked about why that price has reduced recently. ASDA insists it is paying no less for its liquid milk than prior to the Arla price cut and therefore many serious questions remain. We have encouraged ASDA to take greater responsibility and truly reflect what the Vision talks about by creating a genuine ASDA price.

“But most importantly, this ridiculous discounting of liquid milk has to stop. We have welcomed Tesco's move to increase prices and ASDA must now act responsibly to do the same.”
 

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