The performance of the Groceries Code Adjudicator will be examined in a statutory review, with the dairy industry calling for it to be extended to help protect dairy farmers better.
The National Farmers Union has also called for British farmers to have better protection when they trade abroad.
The Groceries Code covers the 10 largest UK supermarkets and is designed to help control practices that have a negative impact on suppliers and stifle supply chain innovation.
The GCA is the independent body that oversees compliance with the code.
Speaking in response to the launch of the consultation on the GCA, Dr Judith Bryans, Chief Executive of Dairy UK said: “With limited resources available, the Groceries Code Adjudicator has shown herself to be effective in improving commercial relationships between suppliers and retailers.
“The clearest and most immediate benefit to the dairy sector will come from extending the remit of the adjudicator to large food service companies and to smaller retailers and wholesalers.
“These outlets constitute an important and growing part of the market for dairy. They need to be brought under the scope of the Grocery Supply Code of Practice.”
'New and challenging environment'
Responding to suggestions that the Adjudicator should oversee the dairy industry voluntary Code of Practice, Dr Bryans added: “Brexit means the dairy industry will operate in a new and challenging environment.
“If we are to successfully face these new challenges, contractual relations between farmers and purchasers will need to engender trust and collaboration whilst giving the industry the flexibility to respond to a dynamic and volatile market place.
“Without this flexibility, the industry will not be able to attract the investment necessary to fulfil its potential.
“It is important to recognise that the Code was developed under different circumstances and needs to be adapted to the changing market situation. This is a debate that should be kept within the control of the dairy sector.
“Regulating agricultural supply contracts would effectively require the Adjudicator to oversee the commercial relationships between tens of thousands of businesses. This would significantly increase bureaucracy and abandon the idea of a market driven sector.
“If our industry is to prosper, we must work together to take on the challenges and opportunities of a global market place and develop our own solutions. Regulation of contracts would detract from this necessity,” Dr Bryans concluded.
