Farmers, Avoid Signing Exclusive Contracts
This article is about a specific case that was submitted anonymously, so while we can’t vouch for the legitimacy of the information we do agree that it highlights the disadvantages of exclusive contracts and their potential for being exploited.
An anonymous user has emailed us to warn farmers NOT to sign exclusive supplier agreements with Woolworths. If they need product badly enough they will buy, you do not need to exclusively supply only to Woolworths. Apparently Woolworths sometimes stops using a supplier after a few months and because that supplier was exclusively selling to Woolworths they go into debt. Woolworths then steps in to buy the failing company and “rescue” the owner from debt.
Woolworths received a lot of criticism recently when they were caught selling 460g loaves of bread as 700g. This is very misleading, no matter what their excuse is. There are also reports of them stealing designs from independent designers. So with all this negative press it’s not that hard to believe they might do something as shady as the aforementioned scenario. All we can say is, be careful…