We are urgently developing research requirements with other European laboratories to make sure we understand and the disease (Schmallenberg) better.New retail code comes in today amid bullying claims
THE new strengthened and extended Grocery Supplier Code of Practice comes into force today (Thursday, February 4) against a backdrop of continuing farmer anger over alleged supermarket ‘bullying’.
The new code will offer extra protection for suppliers against supermarket practices like demands for retrospective payments, asking suppliers to fund promotions and changes to trading terms at short notice.
The Code applies to the UK’s ten biggest grocery retailers, rather than the ‘big four’ covered by the previous code.
It contains an over-riding principle of fair dealing and, for the first time, gives suppliers access to independent, binding arbitration.
It requires all retailers to have a compliance officer responsible for the code and for much more detail to be confirmed in writing, increasing certainty on both sides.
The code, which is currently overseen by the Office of Fair Trading, contains provisions for retailers who breach it to be fined.
The Department for Business, Innovation and Skills (BIS) is due to launch a three-month consultation on the nature of the ‘enforcer’, or ombudsman, that will oversee the code on Friday.
The British Retail Consortium (BRC) said the code would make the introduction of an ombudsman unnecessary.
BRC director general Stephen Robertson said: “The effort and money retailers are putting into demonstrating they meet the Code’s requirements and informing suppliers shows they accept their responsibilities as major players in the supply chain.
“Retailers want successful, sustainable long-term relationships with suppliers. How else would they get the quantity and quality of goods their customers want?
“The Code is regulated by the OFT and gives suppliers more protection and a new right to independent arbitration if they’re unhappy. It will strengthen relationships and give suppliers the confidence they need to plan for the future.
“Now, politicians of all parties need to recognise that these strong and wide-ranging new rules make an Ombudsman unnecessary.”
But the NFU, which this week accused supermarkets of making ‘pre-emptive strikes’ on suppliers ahead of the code’s introduction, said it would be meaningless without a robust body to enforce it.
NFU president Peter Kendall said the events of this week highlighted the need for the new strengthened code, backed by an ombudsman ‘with teeth’.
“Recent reports to me about retailer behaviour in the supply chain have demonstrated nothing but bully-boy tactics,” he said.
“This week should have been marked by a sea change in grocery supply chain relationships with our farmer and grower members but instead in the past ten days I have heard how suppliers to major retailers have faced some of the most unreasonable demands for retrospective payments and changes to trading terms that we’ve ever seen.”
Readers' comments (1)
Mick MOOR | 4 February 2010 6:36 pm
It makes me laugh to hear supermarkets talk about quality. The meat looks unappetising and is dearer than my butcher. He will also cut what I want rather than offering me a pack without any choice. I wouldn't care to guess what rubbish goes into their sausages and other processed meat.
As an agricultural engineer, I know the amount of money and effort farmers spend to avoid damage to vegetables like potatoes or onions. It breaks my heart to see a spotty youth just dropping bags of them on to the shelf, or even throwing them! When you complain about damaged goods, the reply you get is,"We'll have a word with the supplier" When I explain that it is them and not the supplier, they don't want to know!
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