Late payments and pricing rows rise as supplier issues persist

Suppliers are facing a rise in late payments and pricing disputes despite overall improvements in how supermarkets comply with industry rules, new figures reveal.

The latest annual survey from the Groceries Code Adjudicator (GCA) shows that while retailer compliance with the Groceries Supply Code of Practice (GSCOP) remains high, pressure is building in key areas of the supply chain.

The NFU said the findings highlight both progress and persistent weaknesses, particularly for farmers and growers.

Groceries Code Adjudicator Mark White warned that “despite overall Code compliance remaining high, there has been a small increase in suppliers experiencing issues”.

Awareness of the GCA and its role has continued to improve, with more suppliers reporting a good understanding of how the regulator operates. Confidence in raising concerns also appears to be growing, with increased recognition that complaints can be made confidentially.

However, beneath these gains, several problems have worsened.

Reports of late payments rose from 11% to 14%, while complaints about poor forecasting — including a lack of compensation for errors — increased from 9% to 10%. The proportion of suppliers reporting no issues fell slightly, suggesting challenges are becoming more acute for some businesses.

At the same time, operational pressures are intensifying. More suppliers flagged difficulties resolving invoice discrepancies, rising from 17% to 20%. Costs linked to inaccurate forecasting also edged up, while delays or refusals in agreeing cost price increases increased from 14% to 15%.

These issues are particularly significant given ongoing volatility in input costs, leaving many suppliers operating on tight margins and under growing financial strain.

Longer-term trends show a mixed picture. Fewer suppliers reported issues overall, and willingness to raise concerns with the GCA has increased slightly. However, fewer suppliers said they had raised issues directly with retailers, pointing to continued reluctance — or limited ability — to challenge problems.

Retailer performance remains strong overall, with most achieving compliance ratings above 90%. However, variation persists. Morrisons recorded 89%, while Amazon again ranked lowest at 68%, maintaining a significant gap with the rest of the sector.

For farmers and growers, barriers remain more pronounced. Many primary producers are removed from direct relationships with retailers, limiting their access to GSCOP protections and making it harder to raise concerns.

Steps are being taken to address these gaps. The Agricultural Supply Chain Adjudicator (ASCA) is beginning to improve oversight in sectors such as dairy, and further rollout is expected. Closer alignment between the GCA and ASCA is also underway following the decision to bring the adjudicator role into Defra.

The NFU is now calling for further reforms to strengthen protections across the supply chain. These include extending the scope of the Code to more businesses, embedding the GCA’s “golden rules” into legislation, and ensuring additional sectors fall within its remit.

Mr White added: “The findings are a critical reminder that the retailers must focus on ensuring Code compliance. I am determined that they do.”

The NFU said stronger measures will be essential to ensure suppliers — particularly those at the start of the supply chain — are treated fairly as commercial pressures continue to mount.