Tesco record profits

To survive in the current business environment, efficiency is no doubt absolutely vital. But for supermarket chain like Tesco to record �1.15bn profits (for the first half of the year), we are talking about more than just surviving! Money has to come from somewhere, to make up the figure. So naturally, consumers are the one who pay, as they purchase products from the supermarket. However, the consumers are not losing out here, as a trolley of 100 common items bought at Tesco would cost only 74p (according to The Grocer) less at Asda, which claim themselves to be the cheapest supermarket chain in the UK. The clear losers are the producers and farmers. According to the Welsh dairy farmers �supermarkets are charging up to 57.5p per litre for milk with farmers receiving around 17p. Ten years ago supermarkets were charging 44p and farmers received over 24p�.I understand that public listed companies are designed to deliver performance to the shareholders. But for these supermarkets to (partly) booze their profits by squeezing money out from the farmers make Microsoft looks like a saint. At least Microsoft’s biggest shareholder, Bill Gates, is making good use of his wealth and set up one of the largest charitable foundation in Bill and Melinda Gates foundation.

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