AN MP has taken up the case of farmers being treated unfairly by supermarkets with the Office of Fair Trading (OFT).

Helen Goodman, MP for Bishop Auckland, used a hearing of the Commons Public Accounts Committee (Pac) to highlight the problem of supermarkets exploiting their relationships with producers to drive prices ever lower.

She is demanding that an independent watchdog monitors the situation to prevent supermarkets from abusing their power.

She said to OFT officials: "Farmers and suppliers complain a lot about the power of the supermarkets. They are pretty incensed about the supermarkets on a pretty ongoing basis.

"One of the things that they say to me is that they do not want to make formal complaints, because they are concerned that the data cannot be properly made anonymous and that what will happen is that they will be screwed down in the renewal of the contract, or indeed not be given a contract at all."

A report on the OFT, just released by the National Audit Office, stated that nearly a quarter of small and medium-sized firms believe they are harmed by unfair practices, such as cartel price-fixing and collusion to set tender prices. However, only a minority report this to the OFT.

Speaking after the Pac hearing, Ms Goodman added: "The OFT admitted that it is extremely difficult to protect vulnerable complainants during investigations.

"I want the supermarkets' relationships with farmers to be regulated by a stricter code of practice and monitored by an independent watchdog."