The importance of legislative action to tackle unfair and abusive trading practices in the food supply chain has been highlighted a high-level conference.
At the Politico Agriculture and Food Summit 2017 in Paris on Thursday (30 November), NFU President Meurig Raymond highlighted that unfair practices have been allowed to occur throughout the chain for "far too long".
He said it was time for the EU to act so unfairness is stamped this out, with many farming businesses suffering because of it.
The UK once had voluntary schemes to curb unfair trading practices, but Mr Raymond said this did not work. The Groceries Supply Code of Practice (GSCOP) – and a Groceries Code Adjudicator (GCA) – were then created as tools to solve this problem.
Regulating only the retailers and protecting their direct suppliers, the GCA has made an impact in the four years since its establishment.
“We are now seeing fewer suppliers experiencing Code related issues. Clearly, regulation is required to reduce unfair trading practices,” the NFU President told the conference.
1 in 7
However, the NFU’s own research has shown that 1 in 7 of farming members still face unfair trading practices – highlighting the need for further development of the principle of fair trading to be enforced throughout the whole supply chain.
Mr Raymond continued: “It is clear that the voluntary EU-wide Supply Chain Initiative has serious limitations and we will continue to reiterate that an effective EU legislative framework is vital. As well as strong EU regulation, we wish to see an independent enforcement office, such as the GCA, introduced.
“If implemented properly, this will give producers the security and confidence to come forward with reports of unfair trading practices.
“Quite rightly, the GCA is often described as a model for other EU countries, but we would argue that the role of the GCA must be extended in breadth and depth.
“The NFU will continue to work for British farmers on unfair trading practices and will push for the culture change so badly needed in the food supply chain.”
According to a YouGov survey carried out on behalf of the GCA, 62% of direct suppliers said they had experienced an issue in the past year – compared to 70% in 2015 and 79% in 2014.
