Suppliers 'afraid' to raise concerns to Grocery Code Adjudicator, says NFU

The proportion of producers reporting Groceries Code-related issues in has fallen, a survey has suggested.

A YouGov snapshot of 1,145 suppliers, released to coincide with today’s Groceries Code Adjudicator Conference, found that 70 per cent had experienced problems covered by the code in their dealings with the ten largest retailers during the past 12 months, down from 79 per cent in 2014.

At the same time, the proportion of repondants who would consider raising an issue with the GCA rose by nine to 47 per cent.

Adjudicator Christine Tacon said the findings represented progress during a challenging year for the supply chain. She said: “We still have some way to go in important areas but this is a clear sign we are on the right track. Suppliers are more aware of the GCA and its work and fewer now believe the GCA will not be able to do anything if they bring an issue to me.”

Ms Tacon described the past year as one of milestones, including the launch of the first GCA investigation.

She felt her collaborative approach with retailers was making a difference.

“Many suppliers have told me about their concerns that they were being overcharged by retailers for handling consumer complaints about products supplied,” she added.

“I raised this issue with retailers and they have all had a good look at their processes and charges. I am aware that some have changed their approaches, with one more change to be implemented in August.”

Food chain adviser Tom Lander said: “The NFU commends the work and progress the adjudicator has made over the past year and we are especially pleased to see that charges for customer complaints is a key focus for the next year's work.

“We share her disappointment, however, that many suppliers are still afraid to raise their concerns with the GCA about bad practice for fear of retribution. This goes to show the balance of power within such a volatile trading environment.

“Similarly, it is also disappointing to know that only a small proportion of the suppliers who took part (29 per cent) have been trained on how to apply the code to their businesses and their relationships within the supply chain. It is essential that farmers and growers know as much as they can so they can use the code in negotiations and to highlight where they know it is being breached.

“What we need now is for the government to remain committed to ensuring the adjudicator for the long term, to build upon the good work already achieved. We are all too aware that unfair trading practices exist in the supply chain and the government needs to remain committed to ensuring farmers have a more level playing field when ?it comes to negotiations.”