The Competition Commission’s recommendations for a new and strengthened code of practice covering the relationship between all retailers, with a turnover of more than £1 billion, and a recommendation to establish an ombudsman to oversee its implementation are a positive step forward that will help enhance supply chain relations, the NFU said.
Responding to the Commission’s recommendations following its investigation into the groceries sector, NFU president Peter Kendall said: “We have argued all along there is a clear need for a strengthened code of practice to govern supermarkets relationships with their suppliers, so a new code which would apply to the majority of retailers will help to dispel the culture of fear in the supermarket food supply chain and lead to more transparency and trust.
“The recommendation for an ombudsman to enforce a new code of practice and deal with any disputes is also welcome and we feel an independent board is still the best way to ensure an informed, transparent, decision-making process.”
Kendall added: “It is in everyone’s interests that the food supply chain is vibrant, dynamic, transparent and profitable, so farmers and growers are able to supply the quality and choice consumers expect and deserve, and the NFU is committed to working with the major retailers and other customers to forge strong business relationships in the supply chain that will deliver these goals.”
