A new report sets out to highlight what it calls "bully-boy tactics" used by some of the supermarkets when dealing with suppliers.

Published last week, the research carried out by Grant Thornton, financial and business advisers, claims that eight out of 10 UK food suppliers, including bakery suppliers, expect to see more companies insolvent during rest of this year.

Half of these put the blame on supermarkets because of price pressure, excessive power, de-listing or the refusal to re-negotiate prices in light of higher costs.

"Failure to act will result in more sector failures," said Duncan Swift of Grant Thornton’s Food Agribusiness Recovery Group.

The report surveyed company directors in the food supply chain. It showed that 64% of suppliers operate without formal contract terms with supermarkets.