Topic updates
Monopsony Power - farmers making tiny profits as supermarkets reap record profits
2nd December 2022
Research by food charity Sustain reveals the remarkably low profit margins being earned by the UK's farmer for essential items - cheese, bread, apples, carrots and beefburger. They earn 1p on a loaf of bread or block of cheese and 3p on a kilo of apples.
Why? Because of the monopsony power of supermarkets, who use their status as preponderant buyers to drive prices below those that would be generated in competitive markets. Are we as consumers happy with this? Given our shopping habits, it would appear so.
Our farm lead @vickihird is on @BBCFarmingToday talking about new report #unpickingfoodprices showing how little of your food pound reaches farmers - much less than 1p for a loaf of bread. We need supply chain regulation and new routes to market. https://t.co/8Djsyy9bnn
— Sustain (@UKSustain) December 2, 2022
UK farmers making tiny profits as supermarkets boast record takings https://t.co/KjUrp0dUPP
— The Guardian (@guardian) December 2, 2022
Graham Watson
Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.
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