The National Farmers' Union (NFU) is calling on supermarkets to sign up to an independent ombudsman for the retail market while they still have the chance.

Union president Peter Kendall is using the last-ever Royal Show this week to make the last-ditch plea.

Having recommended a tightening of the supermarkets code of practice and the establishment of an ombudsman in April 2008, the Competition Commission has been consulting on retailer undertakings in relation to setting up the ombudsman.

Kendall said: “What I’m saying to the supermarkets is very simple: You’re doing some great work on behalf of British agriculture and the consumer - go the next step and say ‘yes’ to an independent ombudsman to monitor your compliance with the revised code of practice. And remember, this isn't just coming from suppliers - an overwhelming majority of consumers are also saying they’re concerned about retailer treatment of small businesses.

“I’d like to see [agriculture minister] Hilary Benn backing the Competition Commission’s findings too. If the ombudsman issue goes to Peter Mandelson’s [business, innovation and skills] department to decide, we need to know that DEFRA is in there supporting the suppliers whose products are on the supermarket shelves. Last year I called on the government to redress the balance and focus on the importance of productive agriculture. This is just another example of the shift in DEFRA’s commitment to farming that’s needed.”

Kendall used the financial sector as an example of what can happen when big players are left unregulated. He said: “We can’t risk that with our food supplies… Let’s be clear. Voluntary codes and charters are all well and good but when it comes to how big retailers deal with their small suppliers they simply haven't done the job.”

The Competition Commission consultation on retailer undertakings for a groceries ombudsman closed on May 29, 2009. If supermarkets do not give the necessary undertakings, the commission will refer the matter to the department of business, innovation and skills, with a recommendation that the department takes steps to facilitate the establishment of the ombudsman.

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