Zurich Citizens News, 1978-05-18, Page 9Citizens News, May 18, 1978
Hannam challenges food industry
A challenge to the
members of the food in-
dustry to come forward to
the Ontario Federation of
Agriculture (OFA) with
further details on the ex-
isting "unsavoury"
merchandising practices
"so we can help clean up
this mess", was issued Fri-
day by Peter Hannam, OFA
president.
Speaking at the annual
meeting of the Ontario
branch of the Consumers'
Association of Canada, Han-
nam said both food
producers and processors
were facing questionable
retail advertising practices,
excessive discounting, and
unnecessary bureaucracies
in their dealings with some
food chains.
"Unfortunately at this
stage we cannot name
names because jobs are at
stake. From the information
made available to us, it
seems the whole food and
processing industry lives un-
der an unstated but real
threat of reprisals. People
are afraid to speak out.
"Farmer's food prices are
public," Mr. Hannam added.
The price of food to the con-
sumer is public. Yet what
happens in between is un-
known, confusing and
suspect. The picture needs
to be clarified. The least we
can ask is that all merchan-
dizing practices be fair,
honest, open and above-
board.
Mr. Hannam explained
that the result of these prae-
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"stranglehold" a few cor-
porations have on' the food
industry. "This tends to
limit competition at the
retail level, to weaken in-
dependent grocers. and to
make it easier to subse-
quently buy them out." He
added, few new grocery
retailers or food processors
have started business in On-
tario in the last few years,
while "scores" have folded
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Another important effect,
Mr. Hannam said, was the
"reduction of choice" that
consumers have in the
market. 'The tactics at the
retail level dictate which
products fill shelf space and
which ones get de -listed."
Hannam said some chains
were forcing their suppliers
to allow sizeable volume,
promotion and mis-
Page 9
cellaneous discounts as a
condition of handling the
product, "These discounts
can be much more than 2
percent. In fact, in the last
year, they have escalated to
10 and even 15 percent."
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