Dairy farmers have called on the next Government to extend the work of the Groceries Code Adjudicator (GCA) to help bring an end to unfair trading practices in the food supply chain.
During its meeting on Thursday 11 May, members of the NFU Cymru Milk Board said that whilst the GCA had carried out 'excellent' work since being introduced in 2013, the 'time was now right' to move forward to extend the remit of the Adjudicator to cover more elements of the supply chain.
The Groceries Code covers the 10 largest UK supermarkets and is designed to help control practices that have a negative impact on suppliers and stifle supply chain innovation.
The GCA is the independent body that oversees compliance with the code.
Mr Aled Jones, Chairman of the NFU Cymru Milk Board said farmers wish to see 'fair and transparent' supply chains across the board.
“Voluntary codes have been introduced in an attempt to resolve a number of long running issues. Although there have been some positives for primary producers there are still too many buyers that operate outside of the principles of the codes.
“In my own sector too many companies continue to give very short notice of price changes to their producers, unreasonable notice of specification changes and changes to required volumes without sufficient warning to name but a few.”
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.
'Sound principles'
Mr Jones said dairy farmers want to see 'sound principles' developed in the voluntary codes and given more status.
Voluntary Codes were introduced as a code of best practise at an attempt to resolve ongoing issues.
“The next Government should make the principles of the voluntary codes of practice operating in the agri-food sector mandatory and bring them under the remit of the Grocery Code Adjudicator.
“Making the principles agreed in the voluntary codes mandatory and enforced by the GCA will give primary producers the confidence that the supply chain is not abusing their buying power and position over the primary producer.
“Secondly we would ask that the incoming Government reduces the turnover bracket of the Grocery Suppliers Code of Practice (GSCOP) so that the Code will include more retailers, food service and food manufacturing businesses. This is important for the dairy sector given that a significant proportion of our produce is sold through these channels.”
The GSCOP was implemented by the Government to encourage major UK supermarkets to treat suppliers fairly.
“We would like to see a fair and level playing field where those who demonstrate good practice and adhere to the GSCOP are not disadvantaged in any way.”
One of NFU Cymru’s 10 key policy asks for the 2017 General Election is ‘The Groceries Code Adjudicator has undertaken good work. Its remit must now be extended to protect farmers from unfair practices in the food chain.’
One of Labour's new policies from its leaked manifesto shows Jeremy Corbyn is in favour of extending the GCA's powers.
