Sunday, July 4, 2010

Sue Kedgley - Supermarket Mark Ups Crippling Growers

Interesting article below.

Basically the gist is that the super markets are whacking on mark-ups of up to 500% on produce - and bullying the growers into selling the goods below cost (translation - for less than nothing).

On the flip side the super markets are saying that these markup's are un-true - and if they are true - do not reflect other costs - storage - transport - cooling - wasted goods - etc.....

Overall I guess the super markets can't afford to put all their suppliers out of business - so the market left to itself should come up with some sort of balance.

Possibly the super markets are assuming that the growers have some fat - stored during the good years - before the recession - and therefore are going for that fat!

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