UK growers have backed calls from an all-party parliamentary group for an independent regulator to oversee the retail sector and a strengthened statutory code of practice.
Responding to the Dowd Report the NFU in fact went further, calling for a full blown review of the retail sector by the Competition Commission.
NFU president Tim Bennett said: “The Competition Commission needs to get involved. The balance of power in the supply chain is tilted overwhelmingly in favour of the supermarkets and the lack of effective regulatory control means their power is open to abuse. During past investigations of the retail market some suppliers have been reluctant to speak out for fear of retaliation. The fear some have of losing their contracts will need to be overcome for any investigation to be effective, but the fact that fear exists at all indicates an inequity.
“The major retailers in the UK are very important customers of farmers and growers and the NFU is not anti-supermarkets. What we are against is trading relationships which operate in a climate of fear and oppression. Fairness and transparency are vital if producers are to go on giving consumers the wide range of high quality domestic produce currently on offer. There is a big difference between driving a hard bargain and obtaining cooperation under duress and the Office of Fair Trading has a responsibility to consumers and suppliers to deliver an environment which facilitates the former without allowing the latter.”
No comments yet