Wednesday, October 24, 2012

Walmart in the U.K. buys suppliers

Asda Stores Ltd. in the United Kingdom has bought two of its meat suppliers – Forza Foods and Kober Ltd.

Asda is owned by Walmart Stores Inc.

Asda says it bought the companies to reduce its costs by eliminating the middle man.

Forza processes ready-to-eat meats and Kober supplies fresh meat. Both are run by Max Smith-Hilliard who is a big shot in the U.K. hog industry.

Here in Canada, our biggest supermarket chain, Loblaws, squeezed supplier Colonial Cookies of Cambridge until the company could not continue, and then Loblaws took it over last year.

However, in a counter move, the Weston family which controls Loblaws sold its Nielson dairy business to Saputo Inc.

But no matter how you slice or dice it, farmers are mere mice in a field where elephants battle. And the mice get trampled.