National Farmers' Union of Scotland : 11 January 17 - Stronger Protection for Primary Producers Needed in Food Chain

Article date:

11 January 2017

News Article Number:

03/17

Union submission on Grocery Code Adjudicator review looks for Government to do more

NFU Scotland has called for primary producers to be better protected as it responded to a consultation on the role of the UK's Groceries Code Adjudicator (GCA).

The consultation, which was launched by the Department of Business, Energy and Industrial Strategy, questioned interested parties about what could be done to improve relationships in the grocery supply chain.

In its response, NFU Scotland said that good progress has been made in the relationships between supermarkets and their suppliers since the formation of the GCA. However, primary producers are still being subjected to unfair trading practices (UTPs) such as delays in payments and changes to supply agreements at short notice.

NFU Scotland has argued that the UK Government must implement changes to the regulator, or introduce an alternative, to ensure that farmers can, without fear of reproach, address the use of UTPs by their customers as a business management tool.

After responding to the consultation, NFU Scotland Food and Supply Chain Policy Manager John Armour said: 'NFU Scotland has consulted its members to find out exactly what they want from the Groceries Code Adjudicator. While issues differ across the many different sectors of Scottish agriculture; farmers, growers, and crofters believe that more should be done to prevent the impact of UTPs on farm.

'Examples of some UTPs which have been impacted on farm businesses in the past include delays in payments and changes to supply agreements at short notice being imposed by a major customer. This behaviour can have a significant impact on producer confidence and hampers their ability to predict cashflow and plan for the future.

'Farmers, growers and crofters continue to be concerned that negative behaviour continues to be common with some retailers. The GCA currently only regulates the 10 largest supermarkets, and members are keen to see its remit extended to a far wider number of retailers.

'What has been clear through our work with the GCA has been its success in increasing compliance with the Groceries Supply Code of Practice (GSCOP) in the last three years. NFU Scotland has commended the openness and transparency of the office of the GCA, and we look forward to working with it over the coming years.'

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