Cheap food – who foots the bill?

In a market where prices are squeezed to the absolute and in order to protect margins suspect practices and questionable ethics will inevitably come to the fore.

Some operators will attempt to cut corners whilst the purchasing policies of local councils can also be blamed for driving down food quality with cheap food contracts for schools and hospitals.

The current economic reality will continue to underpin the demand for cheap food but in satisfying this demand as was evidenced in last year’s horse meat scandal there will be accompanying risks.

For supermarkets focussing on market share food prices must be kept down, at all costs. But in the case of farming it is such a long cycle and there is little account taken of retrospective costs for the producer.

Looking back 25 years ago, British people probably spent about 22% of their disposable income on food.

Now the spend is roughly between 4 and 8%, so food has actually become cheaper.

The reality is that the 'bog-offs' - the buy-one-get-one-free deals are not actually sponsored by supermarkets. They are paid for by the producer who has to agree to them under tight terms and conditions.