Suppliers set to benefit from new supermarket code of conduct
Date posted: 06 Feb 2010
The agriculture sector has welcomed the launch of a new code of practice aimed at protecting suppliers against the promotions of supermarkets.
Following ongoing complaints from the nation''s farmers that major supermarket chains have been dealing with them unfairly, the introduction of the Groceries Supply Code of Conduct will help protect them from commonplace practices such as covering two-for-one deals or even helping to pay the price of shoplifting.
In addition, supermarkets will also be required to keep records of all the negotiations that they have with their suppliers, with the regulations to be overseen by the Office of Fair Trading.
While welcoming the development as a step in the right direction, the National Farmers Union (NFU) expressed its concerns that a special ombudsman has not been established to oversee the new regulations.
In addition, the union''s Terry Jones warned that the amount of influence the supermarkets wield over farmers could continue to "damage suppliers'' ability to innovate and invest" if not properly brought under check.
The new regulations are now being subjected to a 12-week period of consultation, with all complaints or issues to be treated in the strictest confidence by Trading Standards.