By Ewan Pate, farming editor

IF SUPERMARKETS continue drilling down prices there will be no farming industry left—so said Sir Stuart Hampson yesterday as he opened the 2006 Royal Show.

He was speaking as this year’s president of the Royal Agricultural Society of England, so perhaps his remarks were unsurprising.

But he is also in a position to avert such a disastrous outcome. As chairman of the John Lewis Partnership, which owns Waitrose, he has the clout to change retailing policy.

He denied that he was throwing down the gauntlet to his competitors in the world of multiple retailing but yesterday he presented a new study which he has commissioned as his RASE president’s initiative.

The independent report calls for differentiation of food products.

Sir Stuart believes that much of the problem lies with low world commodity prices, but equally he believes that British farmers don’t produce commodities but something different and better.

The trick will be to persuade consumers to pay more for the better or differentiated products. He highlighted his own company’s two new Waitrose stores in Edinburgh and the links forged with local producers.

“The problem is that the interests of British consumers are not transferred into buying habits, with many being caught in an ethical mind trap.

“For instance, 81% state that reducing food miles is important but only 25% consider country of origin when making a purchase,” he said.

“We need to try and find out what is stopping consumers changing their habits. Three things are crucial.

“Firstly and most importantly shoppers will not pay higher prices unless they see a gain such as a health benefit, a better taste or improved quality and safety.

“Secondly, we have to remove the suspicion of supermarkets. Consumers have to know that fair trade applies to British farmers as well as others.

“And thirdly, consumers currently believe that they cannot make any difference simply by changing their own buying habits. I believe this is wrong,” said Sir Stuart.

“Support of farming depends on governments and supermarkets but ultimately the consumer holds the key. I think they will be prepared to pay more if they value factors other than simply cheapness.

“After all, farmers will define the face of the countryside for our children and our children’s children. If farming fails, the face of Britain fails.”

There is a lot at stake.