We are told that the universe is fond of opposites: black and white, ying and yang, United and City. And this week gave us a cracker.
In the UK the supermarket chain Asda had its corporate responsibility director come out with a climate change adaptation solution. He said “Businesses and other stakeholders in the food sector need to work with farmers and suppliers on water-related activities to ensure current and future demand for produce is met and to reduce their risk to supply-chain disruption.” Good PR speak as you might expect, only he went on to say, “We launched a water-trickle scheme for celery growers in Spain that provided a water-spray kit to farmers with the aim of ensuring a secure supply of product to our stores.”
Asda justified this largess because they believed that global food prices and supply would be affected by “dire droughts” around the world. Not to mention the floods in the UK.
In other words the retailer realized that farmers are critical to their business and although this sounds like a no brainer to a supermarket, it is surprising how modern complexity of the commodity markets makes it easy for them to forget.
And so on to the other side of the coin.
Coles, a similar sized food retailer in Australia, asked its suppliers for cash payments. Yes, they just went out and asked suppliers to pay for the privilege of having their commodities sold in Coles stores. Nominally these payments were to “to help pay for what it claimed was improvements to the supermarket’s supply chain”.
The competition watchdog got wind of this cheek and got upset. According to court documents Coles had a $30 million target from their supplies and had penned sales scripts to help their staff get on with it. We will wait and see if they get more than a wrist slap.
Now we could accept that the universe will always throw out some bad with the good on the celestial wind and let it land where it will. Apply this karmic logic to food supply in a commercial world and for every company with a vision there will be another out for a buck. Coles were just not in touch with the good bit.
Except that the world is looking at a doubling of food production by 2050 and I am not sure what the celestial balance makes of that.