More food from farms says Co-op chief

THE chief executive of The Co-operative Group says he wants the organisation’s farms to increase the amount of food its grows for its stores.

Speaking at the National Business Awards growth summit in Manchester, Mr Marks said the Co-op’s farming business – which comprises more than 50,000 acres – “will be a major competitive advantage”, and will strike a cord with consumers.

Mr Marks, who has driven a renaissance at the Manchester-based group, said:”The Co-operative is Britain’s biggest farmer – although we do tend to operate in silence.

“The farming business ought to be growing products that we can sell in our food stores because it is a really good USP for us. Not even Tesco can do it and it’s a big competitive advantage for us going forward at a time when food providence is nan issue.”

Co-operative Farms are already working towards supplying 25% of the British-grown fresh produce sold in Co-operative Food stores by 2011. The range includes, in season, potatoes, carrots, onions, apples, strawberries, peas, beetroot, broccoli, sweetcorn, honey, flour, apple juice and cider.

Mr Marks said other retailers, such as Asda, Sainsbury’s and M&S were all increasingly switched on to ethical matters, and are now ‘trying to steal our clothes.’ 

“Everybody is now getting into CSR, but it’s in our DNA. For many years we were ethical but poor retailers but now I think it;s a tie-breaker and can give us a competitive advantage.”

Having returned the Co-operative Group’s food business to the Premiership of food retailing thanks to the £1.6bn Somerfield takeover and a huge investment in the brand and in refitting stores, he said he would not be challenging the big four – Tesco, Asda, Sainsbury’s and Morrisons – in an aggressive way,

“We’re not pushing too far too hard – I don’t want to make an acquisition too far, there’s too many risks in pushing for the top four.”

Mr Marks, who is in his 43rd year in the Co-operative movement, said he was opposed to deregulating the pharmacy sector, as he said it could lead to remote communities being damaged, as they had been by the changes in the post office in recent years.

The Co-op is a major player in the sector with 800 shops nationwide.

He said: “The pharmacy business is licensed but if you propose a 100 hour pharmacy you can open anywhere.

“It’s difficult to make them stack up financially – many  run them at a loss. The supermarkets see it as footfall generators. We will lobby against 100 hour pharmacies.

“You will have a Post Office situation, where Post Offices have closed. Pharmacies will go to that stage if pharmacies are deregulated.”

The group will report its annual results next Thursday.