He said: 'This is the third investigation in seven years that has found no evidence to support claims that retailers are unfairly putting the squeeze on suppliers.'
'We acknowledge there are some sectors, particularly the dairy industry, that are failing to keep pace,' he said. 'In these sectors there is a need to restructure, which hasn't been brought about by excess competition, but by a failure to adapt to both consumer demand and reform of farm subsidies.'
Hawkins said the Competitions Commission's report makes it clear that consumers have benefited enormously from a competitive grocery sector, with food prices falling by 7 per cent in real terms since 1999.
He said: 'Unlike utilities, council tax and fuel, food is the only regularly purchased household item that costs less now than it did eight years ago. It is competition between retailers that has made this happen.'
However, research firm Grant Thornton has urged the Competition Commission to take action, rather than run lengthy investigations, because the grocery supply chain has shrunk by a third since 1994.
Grant Thornton's Food and Agribusiness recovery group head Duncan Swift said: 'The next stage of its investigation into the supply of groceries must be accelerated as disproportionate supermarket power is contributing to the decline of smaller food and drug retailers, wholesalers, manufacturers and agri-businesses at an alarming rate.'
However, Hawkins added: 'Ultimately it is the interests of the consumers that must be served.'
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