On 1st March 2001, Tony Blair told farmers that,
"the supermarkets have pretty much got an arm-lock on you people at the moment", and promised that it was "...something we have got to sit down with them and work out". 

Banana Link belong to the Breaking the Armlock, an alliance of 16 farming, consumer, development and environmental organisations calling for stricter controls over the major supermarkets' trading practices, particularly to stop them passing on unreasonable costs and demands to farmers and growers in the UK and overseas. In 2000 a Competition Commission report found that the biggest supermarkets were bullying their suppliers. A voluntary code was subsequently introduced in 2002 to monitor the relationship between the major supermarkets and their suppliers after the Competition Commission found large supermarkets operating against public interest, reducing the choice and quality of goods. The Office of Fair Trading (OFT) has since concluded that "the code is not working effectively" - no suppliers have felt able to complain about their treatment by supermarkets. The Alliance, believes that supermarket power should be regulated by an independent watchdog with real teeth, supported by a legally binding Code of Practice. Find out more

May 2006, OFT to refer grocery market to Competition Commission
The OFT has announced that it will refer the supply of groceries by retailers in the UK to the Competition Commission (CC) for a market investigation. This decison comes after a period of public consultation, which follows the OFT's earlier proposal to refer the grocery market to the CC on 9th March 2006. During this period, over 1,200 responses were received from businesses, consumers and other interested parties, the majority of whom supported the OFT's decision.

Read the full document detailing the OFT's reasons for making a reference to the Competition Commission.

For further information visit the Breaking the Armlock website.