Tesco to introduce fulfilment fees

delilah

Member
would you consider supplying to other grocers as a result?

Which ones would that be then ? Because as the attached shows, they are working together to screw the primary producer. It's a cartel.

Well done for showing an interest in this, but you're barely scratching the surface by looking at 'fulfillment'.
 

Attachments

  • WWF-Basket-Outcomes-&-Measures_2.pdf
    613.9 KB · Views: 0
  • WWFs-Retailers-Commitment-for-Nature-Climate-Ambition-2022-v1.pdf
    1.1 MB · Views: 0

delilah

Member
Never heard such a saying. Could you explain it please? ;)

"We need to learn from nature. In nature there isn't uniformity, but rather there is diversity. We have allowed our food system to go down a dead end road of ever fewer producers, ever fewer processors and ever fewer retailers. We as an industry have been complicit in this. We acknowledge our failures in supporting a policy of fewer farmers and greater food miles. We will now work with our allies in the environmental and social justice movement to bring about change. We will explain to Government the benefits of a more diverse food system, and lobby hard for the necessary measures"
 

JockCroft

Member
Livestock Farmer
Location
JanDeGrootLand
It was inevitable that once supermarkets had control of UK food supply putting the high street out of business they would turn the screw

long term the consumer will suffer, in fact we are seeing that already in recent food shortages which we as UK farmers know will definitely get worse

Government need be regulated supermarkets much harder , they can (and do). dictate price - we need law to stop anyone buying at less than cost of production

ironically they label "fair trade". coffee beans etc to protect overseas farmers- how about UK farmers join the "fair trade" scheme ? strikes me they need it more than Indian tea growers !!
It is Supermarkets that have brainwashed all of us to believe that price is the most important factor in buying our food. Each fights to have the lowest sale price to gain market share.

No matter how they do this, the base producer is the one to suffer.
Just take as an example the Lamb market since January where they imported much larger quantity of New Zealand lamb and caused a dramatic drop in UK ex farm price.
 

Bramble

Member
Hello, thank you for sharing your thoughts. Is this something you would like to go on the record to say?
Sure, although as a dairy/arable farmer I am only a primary producer and we have no direct relationship with a supermarket. Our processors will be the ones being asked to pay these fees, but I guess their extra costs will undoubtedly be passed back to us in the form of reduced prices.

I expect that you will soon have enough replies and great points made by others on this thread to get most farmers feelings about supermarkets. At best they are a necessary evil, we have to have a route to consumers some how but anyone who believes they are in anyway helping farmers is wrong

Supermarkets are really only good at one thing - making money for themselves. Everything else is about window dressing and buying ‘influence’ (through sponsorships, donations, trade memberships) to protect their positions.
 

Humble Village Farmer

Member
BASE UK Member
Location
Essex
There's not really much choice of buyers for farm produce, unless you sell direct, which has its own problems.

With costs as they are, it's getting to the stage where it doesn't really matter if we plant a crop or not, you're just buying work
 

Old Boar

Member
Location
West Wales
Hang on a minute! My mind is boggling a bit - Tesco are asking the producer to pay them a fee to sell to them, when the farmers have already paid for RT and a host of other legislation to be able to sell to Tesco?
It should be like "luck money" at the mart, Tesco should pay the fulfillment fee to the farmer to thank them for producing food that they sell at a profit. The producers are the ones fulfilling the need.
 

onesiedale

Member
Horticulture
Location
Derbys/Bucks.
Hello,

I wanted to get in touch about the news that Tesco wrote to suppliers last week explaining it would introduce new Amazon-style 'fulfilment fees' applied to each item sold on Tesco.com, Tesco.ie and through its app to help cover rising online costs.

I am looking for views from farmers views on this -

Could this threaten survival at an already incredibly challenging time? would you consider supplying to other grocers as a result? are you disappointed when you have to absorb your own rising costs?

If anyone has any thoughts they would like to share please do get in touch at [email protected] or DM your phone number if you would like to talk.

I look forward to hearing from you.

Best,

Isabella Fish, Retail Editor, The Times
@delilah 😁
 

Bongodog

Member
It appears that Tesco have finally woken up to the reality that it is impossible to make money out of online shopping, the supermarkets have been busily cutting each others throats running vans around for £5 or £10 a drop delivering produce charged at the on the shelf price.
In order to avoid upping the delivery charge or introducing dual pricing they have had the clever idea of getting the supplier to pay, it seems the suggested cost is £0.12 for branded products and £0.05 for unbranded. If you are supplying high value items it may be bearable, but to the supplier of a packet of radishes at £0.50 its a complete liberty.

Tesco are investing huge sums in automated picking equipment for online delivery, someone has got to pay for it.

Likewise Ocado has only made a small profit twice in 20 years, the other 18 are full of red ink, City analysts are starting to suggest that they have lost confidence in the Ocado model and cannot see any profit there ever.

Where Tesco lead others will follow, if neither they nor Ocado (M&S food) are making a profit from online I very much doubt any of the other supermarkets are.
 

Sid

Member
Livestock Farmer
Location
South Molton
Supermarkets like Tesco have bought UK farmers only representation through sponsorship and membership of the NFU leaving us mostly helpless. They have made sure we have to stand the costs of pointless farm level assurance schemes that imports do not have to comply with .
Two side to every story, always best to hear both @Isabella_fish
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Two side to every story, always best to hear both @Isabella_fish

i doubt if asked for comment the NFU will have anything bad to say about their supermarket friends

i’m sure a journalist will ask them for comment however……… will be interesting to hear if they dare criticise their corporate members/ sponsors and possible future employers
 
Last edited:

Widgetone

Member
Trade
Location
Westish Suffolk
Perhaps I'm missing the point, but when I last visited Tesco most of the stuff seemed to be own brand?
So will they charge fulfilment fees just to the minority of branded goods, thereby paving the way to 100% own label in the near future?

Saw that some brands, eg Morning Foods, and Warburtons were delisted by Waitrose - this after Tesco dropped Heinz iirc correctly. I wonder if all supermarkets are at it..
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 111 38.5%
  • Up to 25%

    Votes: 109 37.8%
  • 25-50%

    Votes: 41 14.2%
  • 50-75%

    Votes: 6 2.1%
  • 75-100%

    Votes: 4 1.4%
  • 100% I’ve had enough of farming!

    Votes: 17 5.9%

May Event: The most profitable farm diversification strategy 2024 - Mobile Data Centres

  • 3,185
  • 54
With just a internet connection and a plug socket you too can join over 70 farms currently earning up to £1.27 ppkw ~ 201% ROI

Register Here: https://www.eventbrite.com/e/the-mo...2024-mobile-data-centres-tickets-871045770347

Tuesday, May 21 · 10am - 2pm GMT+1

Location: Village Hotel Bury, Rochdale Road, Bury, BL9 7BQ

The Farming Forum has teamed up with the award winning hardware manufacturer Easy Compute to bring you an educational talk about how AI and blockchain technology is helping farmers to diversify their land.

Over the past 7 years, Easy Compute have been working with farmers, agricultural businesses, and renewable energy farms all across the UK to help turn leftover space into mini data centres. With...
Top