Supermarket adjudicator 'will make no difference' says report

British Retail Consortium Food Director, Andrew Opie has said that proposals for a supermarket adjudicator will make no difference because few farmers deal directly with the supermarkets.

The Government is preparing to announce the adjudicator in the Queen’s Speech on Wednesday.

A report released by the BRC has said farmers are benefitting from retail investment in the food supply chain and recommends investment in supply chains.

It includes examples of collaboration which are boosting UK farmers’ returns and helping them benefit from meeting customers’ needs. Farmers are also being helped to reduce both their costs and environmental impact.

The BRC says its evidence shows the mutually-beneficial relationships which help both consumers and these farmers are already in place.

It has also said the Groceries Code Adjudicator will only cover supermarkets’ relationships with direct suppliers. It is a myth that it will make any difference to the majority of farmers.

The need for a Grocery Code Adjudicator, which has cross party support, was made clear in two reports by the Competition Commission published in 2000 and 2008.

The reports found that many big supermarkets were abusing powers in the market and were transferring ’excessive risk and unexpected costs’ to farmers, growers and suppliers.

Members of the Grocery Market Action Group have led decade long campaigns to protect farmers and growers from what Andrew George MP, who chairs the group, describes as the "bully boy behaviour of supermarket buyers".

But BRC’s report highlights that suppliers already have extensive protection, including the right to independent arbitration, under the existing Groceries Supply Code of Practice which is overseen by the Office of Fair Trading. The Adjudicator will "replicate this role and create additional, costly bureaucracy."

British Retail Consortium Food Director, Andrew Opie, said "as our evidence shows, UK food retailers are committed to working with everyone in the food supply chain, including farmers, to ensure that customers have reliable supplies of high quality, safe food, produced in ways that respect the planet, the producer and the animals involved.

"It makes sound business sense to have quality suppliers who are efficient and successful. What we have is collaboration not conflict.

"The Adjudicator will make no difference to most farmers because few deal directly with supermarkets. What will help them is supporting retail investment in the supply chain not diverting money to an expensive new bureaucracy.

"If the Government is determined to push ahead with its plans for a Groceries Code Adjudicator, it must keep the burden it imposes under control. My fear is a new body will be looking to make work and justify its existence, damaging the positive relationships retailers have established. The Adjudicator should only pursue specific complaints from companies which are directly involved. The costs of responding to fishing expeditions and complaints by third parties would just add costs and make it harder for retailers to keep shop prices down."