Disappointment at EU Commission rejection of calls for legislation to tackle unfair trading practices

The Ulster Farmers’ Union says it is disappointed the European Commission has rejected calls for legislation to tackle unfair trading practices (UTPs) along the food chain – despite acknowledging that these exist and are squeezing margins for farmers as the weakest players between field and supermarket shelf.

In a statement the EU official responsible for the internal market said no case for legislation has been made, claiming more time was needed to see if various national measures recently introduced to tackle this problem by member states would prove effective. UFU president, Ian Marshall, said the timing of this announcement was ironic, coming as it did just days after the UK’s Grocery Code Adjudicator had highlighted unfair trading practices by Tesco.

“The farm commissioner was one of the first in Brussels to raise questions about UTPs – but it seems he has been undermined elsewhere in the bureaucracy of the European Commission by those prepared to stick with the status quo,” said Mr Marshall.

He added that there was no question retailers and some national governments had lobbied against legislation. The Commission has had a voluntary supply chain initiative in place for some time, which has attracted limited support and has proved inadequate to tackle the problem. “It seems the Commission is wedded to this voluntary approach despite ample evidence that it isn't delivering the change of approach needed,” said Mr Marshall.

With the decision apparently made against legislation the UFU says this raises questions about the point of the agricultural markets task force, recently created by the farm commissioner, Phil Hogan.

“This was established to look at these unfair trade practices, and at why farmers are in such a weak position compared to retailers. Yet before it has even reported the Commission is setting its face against what could well be one of its recommendations – the need for legislation to bring fairness to the food chain,” said Mr Marshall.

He added that the it seemed odd that a body normally committed to an EU-wide approach to every problem, was suggesting this issue would be best tackled at member state level. “This simply does not tie up with the idea of a 28 member state Brussels driven CAP and a single European market for food,” said Mr Marshall