When Christine Tacon was announced as the long-awaited Groceries Code Adjudicator last month, it's fair to say there was a sigh of relief from many corners of the fresh produce industry. Previously MD of Co-operative Farms and brand manager at Mars Confectionary, Tacon has a strong background in both agriculture and as a supplier to supermarkets. Now with the power to impose fines for any breach of the Groceries Supply Code of Practice, she has been backed to end bad practice towards suppliers from Britain's biggest supermarkets.

FPJ caught up with Tacon at the University of Cambridge's Institute for Manufacturing, where, as an ex-student, she had just finished a talk about the importance of engineering within agriculture, and despite the challenge ahead, her passion for the post was immediately apparent.

What will you bring to the role of Groceries Code Adjudicator?

When I left The Co-operative, I realised I didn't really want to leave farming altogether as I felt I could continue to make a difference. When I was reading this role's specifications it seemed like it was written for me as it isn't just about farmers supplying retailers, it is for anyone in the grocery industry that supplies retailers and I have experience on both sides of the supply chain.

Anybody coming in new would not believe the types of issues and events that take place in the retail industry; I don't need anybody to tell me. As a sales director I have been at the end of difficult and very awkward negotiations with retailers, so I'm aware of what happens.

Do you believe the fresh produce industry currently has a problem with supermarkets mistreating their suppliers?

Yes, there has certainly been an issue in recent times. Things like asking for retrospective discounts, asking for listing fees and retailers insisting that suppliers use a third-party packaging supplier or haulier even though it costs a lot more have been rife.

I spoke to a supplier just last week who has been told they should use a particular haulier, even though they know they can get the same service much cheaper elsewhere, so there is clearly something still going on.

I first need to make sure everybody has contracts, as if people haven't got contracts in the first place, I don't know how I am going to make sure that a lot these things weren't already pre-agreed.

How will everything work? Will you actively be investigating retailers or only doing so once you have received complaints?

Every retailer has to have its own compliance officer, so at the moment any direct supplier has the opportunity to go to the compliance officer and say 'I've been asked to do something wrong and in my opinion that breaks the code.' If they can't agree or the compliance officer thinks they're wrong, they can come to me and I will arbitrate the issue by listening to both sides of the argument and interpreting the code to the scenario. When that happens, the retailer has to pay all the costs unless it is a frivolous complaint and I can subsequently award compensation to the supplier.

Things like retailers over-ordering on promotions and then keeping the promotion in stock and selling it at full price we will clamp down on. It is obvious there will be things like haulage where, if consolidated, it will be cheaper. But when something is consolidated and then overcharged there is clearly something wrong.

The other string of what I can do is launch investigations. The idea is there will be between two to four investigations a year.

The government wants whole areas of retail to be investigated to set a precedent to say this is how you should behave in the future.

One of the biggest issues is the subject of anonymity, with many suppliers fearful that if they do make a complaint, their identity will be revealed and they will be, to quote one vegetable supplier, 'marked for death'. How are you going to ensure this doesn't happen?

Someone can come to me and make a formal complaint and say 'I want to remain anonymous'. If I think by investigating, say, carrot supply, there is a danger the supplier will be traceable then I have to work out how to launch an investigation in a way in which they won't be exposed. Rather than carrots, I might say I am launching an investigation into the haulage of root vegetables; something which broadens the focus rather than narrowing it down.

While I can investigate problems across the whole of the fresh produce industry, I must have evidence that there is something bad going on in the first place. You will probably end up with a rogue buyer somewhere but I have to hope that all of the people supplying that buyer will say something so the retailer can be forced to sort out the issue. I think that when you have a rogue buyer you are reliant on someone actually saying something.

I am happy to see people face to face and not record anything. I want to get a picture of where people think the biggest problems are going on so we can subsequently investigate. I am meeting a fresh produce supplier later today and I hope to make this a regular thing.

Have you been pleased with the reaction since you were announced as the adjudicator?

I have been overwhelmed by the publicity and support I have received. I think the publicity, which I had not anticipated, is brilliant as I now expect all 10 of those retailers at their next board meetings to have a director or non-executive director asking: 'What are we doing to make sure that woman has nothing on us?'

Compliance officers will start to realise I am going to start speaking to them regularly so they'll need to figure out what is going on as officers will look really stupid if I come in and they've never done an audit before.

What level of fine would be considered a deterrent if a supermarket was found guilty, and how are the costs split?

I need to do a recommendation to the secretary of state on what I think the fines should be. In my opinion, they will be calculated by event. I am of the opinion that the fine should be far worse than the benefit. If a retailer is breaking the code without realising it, they could end up building up a massive bill.

There will be four or five staff and I'll also have access to a legal counsel. In terms of funding, we've been allocated £200,000 and will then get £800,000 a year from then onwards, with the bill currently being evenly allocated across all 10 retailers. If one retailer is causing 50 per cent of the problem, then I have the right to say that they can pay up 50 per cent of the bill. You have the right to vary things based on the weight of work a retailer is causing.

The fact I can impose fines is quite a weapon, as every retailer is worried about their bottom line and the reputation of their brand. The fines could easily be eight-figure sums.

I like the fact I have a very tight remit; my role is about ensuring fair trade and the enforcement of contracts.

Are there already areas you have a focus on?

If I find people don't have contracts, there will be an issue. When I meet people I will be asking them what is going on in haulage, what is going on in packaging, so I will definitely focus on areas where I know there have been issues in the past.

For example sometimes supermarkets would have a set agreement on how many promotions they have per year and inevitably towards the end of that year, they ask for another one; this is the sort of thing you know that happens. If suppliers are asked to do additional promotions at the same level of funding that isn't in their contract, it is wrong and they must come to me. It is usually a struggling retailer that will try to cut corners with their suppliers.

What do you want to achieve a year from now?

A year ahead from now I want to get the recommendations agreed with the secretary of state in terms of what level the fines will be. I want to have built some sort of contact with all the compliance officers and to have worked out how we can work together, and I want to feel there is a level of trust for people in the fresh produce industry to come and tell me what is going on.

In a year's time, I would like to say I have started at least one investigation but I don't want to rush into them. Retailers must start looking at what they are doing. I want the message of the code and how it will be enforced to be active in the minds of CEOs. —