The NFU has told the Competition Commission inquiry into the grocery market of “an abuse of power within the supply chain” with retailers in a “dominant position”.
During an official hearing, an NFU team led by president Peter Kendall gave evidence to the inquiry and answered questions about its written submission.
Richard Macdonald, director general of the NFU, said the team’s main message was the clear evidence of abuse of power within the supply chain and that major retailers were in a dominant position. It said that current practices were not in the interest of consumers as quality, choice and safety of food products would be affected as the retailers squeeze suppliers.
He said: “We also argued that the authorities, as regulators, needed to take a more proactive approach to identifying bad practice in the supply chain and competition policy should reflect the need for some rationalisation within the supply chain which would allow the industry to address market realities.”
At the inquiry team’s request, the NFU said it would compile further detailed examples of supply-chain relations over the coming weeks.
