Tesco has said price pressures on grocers have eased, as it reported pretax profits of 拢2.3 billion in the year to February 24, with sales reaching 拢68.2bn.
The retail giant said grocery price inflation had 鈥榣essened substantially', but acknowledged things were still difficult for many customers.
Tesco profits
More than 4,000 products were cheaper at end of the period than at the start, with an average price cut of around 12 per cent, the firm said.
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Tesco is the UK's biggest supermarket chain with more than 330,000 employees and a 27.3 per cent share of the grocery market.
Ulster Farmers Union president, David Brown, said farmers will be frustrated by comments from Tesco that a surge in profits is on the back of 'price pressures' easing.
Mr Brown said this must not lead to a further correlation on the prices paid to farmers, which remain under pressure from aggressive retailers despite rising costs on farms.
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He said the comment about that pre-tax profits jumped as price pressures eased was cause for concern, adding retailers should not enjoy big profits while losses rise on farms.
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"In many cases, Tesco will have been paid for food off farms, long before farmers have been paid for it.听 The retailer is taking no risks, while farmers struggle with costs, weather, and the incessant pressure from retailers on their margins," he said.
"These figures confirm that Tesco is getting all the rewards, while farmers carry all the risks.听 An effective food chain depends on fairness and these figures confirm that does not exist for farmers," said Mr Brown.
