Two significant suppliers have refused to renew arrangements with Walmart-owned UK supermarket chain ASDA due to low or negative real margins.
This is despite supermarket chains being cleared of putting unfair pressure on their suppliers.
Taypack ended its 10-year supply partnership agreement of 80,000 tonnes per annum of potatoes, worth £32m pa (NZ $81m), on May 1 in order to protect the long term sustainability of the company and its growers.
Del Monte has also stopped supplying bananas to ASDA due to low margins, though it is still supplying pineapples.
It is anticipated that land used for growing potatoes in the UK will be used for other crops next season.
Growers needed a 7 percent increase in supply prices to remain viable. |
