WHEN Guy Watson heard last week that the British supermarket giant Tesco had opened a store in Beijing he smiled wryly.
Mr Watson, 47, is one of the few farmers in the UK prepared to speak his mind about the growing power of supermarkets, including the iconic retailer Tesco. That's because, unlike the vast majority of farmers, he doesn't sell to them. Eighteen years ago, his 350-hectare farm in Devon was certified organic. He set up the country's first 'box' scheme, whereby customers could have organic seasonal vegetables delivered directly to their doors.
The scheme took off as more people began to question the source of their food, how many kilometres it had travelled before arriving on their plates and the cost in terms of carbon emissions. Many people considered organic food tastier, healthier and more ethically produced. They were happy to pay a premium for it.
Where other farmers reliant on the supermarket purchasers found their profit margins squeezed harder and harder, Mr Watson's Riverford Organics had latched onto a gap in the market. In 2003 his profit was GBP300,000 (HK$4.5 million). He won't reveal what it is now but says his business has grown exponentially and that he makes 'an obscene amount of money'.
On the other hand, a dairy farmer down the road, Chris Horton, says he is paid only 17 pence for a litre of milk, which is what it costs to produce. That same litre is sold for more than 60 pence in the supermarket. He is considering selling his farm.
'Supermarkets didn't realise the potential of organic food,' Mr Watson says.
'They were too focused on attracting customers with low prices. But people have become more concerned with what they are eating.'