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04/10/2005
A buyers' charter - good idea or not?
LANCASHIRE growers will be given the opportunity to learn more about the NFU's proposed Buyers' Charter when leading figures from both the horticultural industry and the supermarkets come to the county to debate the issue.
The Buyers' Charter is a new concept that many farmers and growers know very little about at this early stage in its development.
Therefore the man responsible for the creation of the Buyers' Charter, NFU's head of food and farming Robin Tapper, will try to enlighten people by discussing the viability of the charter at a meeting to be held on Wednesday 12 October at the NFU's regional office on Moss Lane View in Skelmersdale. The meeting starts at 7.30pm and any interested growers are welcome to attend.
Robin will be part of a panel that will also consist of Chris Blundell who is director of corporate affairs at Morrisons and Sarah Pettitt who is a Lincolnshire field vegetable specialist and Assured Produce Board member.
NFU North West's horticulture adviser Helen Little, who helped organise the event, said: "Drawbacks of the existing Supermarket Code of Practice includes the little protection it offers to suppliers, especially in an extended chain.
"We believe the NFU Buyers' Charter offers a vision for the future and has all the essential ingredients for a sustainable supply chain. Amongst other things the charter would insist on proper written binding agreements for arrangements between retailers, processors and farmers."
The NFU created charter has been developed to protect suppliers and would apply to all processors and retailers, not just the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons.
Basically, the Buyers' Charter is a code of practice for supermarkets to adhere to when negotiating with NFU members.
Anyone who goes along to the meeting will be invited to put their questions regarding the NFU's Buyers' Charter to any member of the panel.
NFU North West's horticulture board chairman, Sarah Fairhurst, added: "When we farmers look up the supply chain we see consolidation everywhere. Even co-ops are becoming multinational. That is reality. But I am sorry to say that we are seeing more and more abuse of power; and there have been some frightening and well-publicised examples in recent weeks. "There is a legally binding Code of Practice, but everyone knows it does not work. We want to see it tightened up. But in addition, we also think that a better way forward would be a voluntary Buyers' Charter covering all aspects of relationships between buyers and suppliers. "This is an NFU initiative, and we have been heartened by the positive response at the level of trade associations. But I have to say that unless we get more engagement from actual businesses I can see the political pressure for legislation becoming unstoppable.
"However, the NFU is encouraged by the responsible attitude some retailers are taking to the challenge to develop profitable transparent relationships. Marks and Spencer and Waitrose have adopted such an approach almost from the beginning. We welcome the initiative Asda has taken to try and encourage the involvement of producers and bring some clarity to the troubled dairy sector. We are also pleased with the development currently taking place in the food service sector, notably by Compass, Brake Brothers and McDonalds to develop direct integrated supply chains, similar to those being developed in the retail sector. "Equally, we become disheartened when retailers who have had justifiably good reputations for firm but collaborative buying principles, abandon them in return for short-term margin improvement. For me a clear correlation is emerging between good business behaviour and business success. I frequently quote the adage that good businesses want to attach themselves to success. "To this end, the NFU is currently working with our food chain partners and the food service sector to develop a Buyers' Charter which we hope will provide a framework for good business practice and the development of sustainable, transparent, accountable business partnerships."
The Buyers' Charter is a new concept that many farmers and growers know very little about at this early stage in its development.
Therefore the man responsible for the creation of the Buyers' Charter, NFU's head of food and farming Robin Tapper, will try to enlighten people by discussing the viability of the charter at a meeting to be held on Wednesday 12 October at the NFU's regional office on Moss Lane View in Skelmersdale. The meeting starts at 7.30pm and any interested growers are welcome to attend.
Robin will be part of a panel that will also consist of Chris Blundell who is director of corporate affairs at Morrisons and Sarah Pettitt who is a Lincolnshire field vegetable specialist and Assured Produce Board member.
NFU North West's horticulture adviser Helen Little, who helped organise the event, said: "Drawbacks of the existing Supermarket Code of Practice includes the little protection it offers to suppliers, especially in an extended chain.
"We believe the NFU Buyers' Charter offers a vision for the future and has all the essential ingredients for a sustainable supply chain. Amongst other things the charter would insist on proper written binding agreements for arrangements between retailers, processors and farmers."
The NFU created charter has been developed to protect suppliers and would apply to all processors and retailers, not just the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons.
Basically, the Buyers' Charter is a code of practice for supermarkets to adhere to when negotiating with NFU members.
Anyone who goes along to the meeting will be invited to put their questions regarding the NFU's Buyers' Charter to any member of the panel.
NFU North West's horticulture board chairman, Sarah Fairhurst, added: "When we farmers look up the supply chain we see consolidation everywhere. Even co-ops are becoming multinational. That is reality. But I am sorry to say that we are seeing more and more abuse of power; and there have been some frightening and well-publicised examples in recent weeks. "There is a legally binding Code of Practice, but everyone knows it does not work. We want to see it tightened up. But in addition, we also think that a better way forward would be a voluntary Buyers' Charter covering all aspects of relationships between buyers and suppliers. "This is an NFU initiative, and we have been heartened by the positive response at the level of trade associations. But I have to say that unless we get more engagement from actual businesses I can see the political pressure for legislation becoming unstoppable.
"However, the NFU is encouraged by the responsible attitude some retailers are taking to the challenge to develop profitable transparent relationships. Marks and Spencer and Waitrose have adopted such an approach almost from the beginning. We welcome the initiative Asda has taken to try and encourage the involvement of producers and bring some clarity to the troubled dairy sector. We are also pleased with the development currently taking place in the food service sector, notably by Compass, Brake Brothers and McDonalds to develop direct integrated supply chains, similar to those being developed in the retail sector. "Equally, we become disheartened when retailers who have had justifiably good reputations for firm but collaborative buying principles, abandon them in return for short-term margin improvement. For me a clear correlation is emerging between good business behaviour and business success. I frequently quote the adage that good businesses want to attach themselves to success. "To this end, the NFU is currently working with our food chain partners and the food service sector to develop a Buyers' Charter which we hope will provide a framework for good business practice and the development of sustainable, transparent, accountable business partnerships."
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