The Liberal Democrats have claimed that farmers are not receiving the full benefits of price increases for their products.

New research has shown that while the cost of chicken, tomatoes, eggs and potatoes rose by 47 per cent between 1985 and 2002, farmers gained just 12 per cent of the extra cash for their produce.

Lib Dem food and rural affairs spokesman Andrew George said farmers were losing out to corporate interests. "Someone must be making money here, and it isn't farmers," he said.

Forum Response: National Farmers Union

Sir Ben Gill, president of the NFU, said: "The NFU has for some time been highlighting this discrepancy between what farmers get and what shoppers pay.

"This reinforces our calls for a thorough examination of the entire food chain and where the money is going. We need to shorten the food chain and to make it more transparent so it is clear what margins are being made at each link.

"We as farmers also need to strengthen our power in the food chain so that we are more likely to gain any benefits that an increase in food prices may bring.

"We thank the Liberal Democrats for reiterating the point that we ourselves made last year."

Forum Response: Countryside Alliance

Richard Burge, chief executive of the Countryside Alliance, told ePolitix.com: "The prime minister has admitted that the supermarkets have farmers 'in an armlock' but has done nothing about it. The OFT should constantly monitor competitive behaviour of supermarkets to counter the massive potential for abuse of their trading position.

"The big supermarkets, and the big food packers and processors who supply them, are in an overwhelmingly powerful position compared to individual farmers. They must not be allowed to carry on using their power in the market place to control price structures and at the same time farmers should continue to pool their resources and act co-operatively when marketing their produce.

"Last week's 'big story' in the media was the growing trend of urban people moving in and buying up more and more farmland - it is little wonder that this is the case. The stark fact is that if farmers are spending more money keeping their farms running than they are receiving for their produce they cannot carry on indefinitely under a growing deficit.

"It is not all bad news: many supermarkets have adopted a more responsible approach of late and are supportive of British farmers and growers - but not enough.

"We want to see farmers receiving a farm gate price for their produce, thus encouraging farming to flourish in the UK. Rural Britain is a huge sustainable resource - the people managing it should be reaping the benefits."

Forum Response: British Retail Consortium

A spokesman for the BRC told ePolitix.com: "It is disappointing to see the use of one-dimensional price comparisons to suggest that retailers are exploiting farmers. Retailers do not buy direct from the farm gate and therefore not at the prices quoted.

"The food chain is complex, its origins starting long before the farmer. The price on the shelf reflects the intricacy of the food chain as consumer needs and safety requirements are met. Value is added in various ways by those involved in haulage, processing, packing, product testing, storage, wholesaling, distribution and marketing industries.

"It is also hugely disappointing to see yet another report that puts the focus purely on the supermarket shelf price ignoring not only the restof the food chain, but also other end users of farm produce such as the catering industry.

"The British Retail Consortium supported the establishment of English Farming and Food Partnerships to stimulate increased collaboration between farmers and to encourage the growth of market-led Farmer Controlled Businesses."