Supply chains bullies to be hit by EU code

The NFU has lauded ambitious plans to develop a Europe-wide code of practice to fight food chain bullies.

The Principles of Good Practice paper has been drawn-up by a high-level group of stakeholders which includes farmers, manufacturers and retailer representatives from across the European Union.

The UK farming unions have played a vital role in devising the document, which was presented to European Commission officials this week by Copa-Cogeca, the European farmers’ organisation.

NFU president Peter Kendall, who is also chairman of the Copa-Cogeca Food Chain Working Group, said: “I am delighted that this European food chain partnership has come together to address the unfair commercial practices sometimes experienced by our members.

“I welcome the Principles of Good Practice paper which builds on our experience with the Grocery Supply Chain Code of Practice in the UK. This is the first step towards improving the bargaining powers of farmers within the food supply chain and responds to the needs of the new CAP.”

The paper calls for an end to threatening behaviour from contracting parties in favour of fair contract terms. It will now be formally considered by the European Commission’s High Level Forum for a Better Functioning Food Supply Chain in November.

That in turn could form the basis of legislative proposals.

“These are very positive steps to improve the functioning of the food supply chain and I am pleased that the NFU is there from the outset, helping to shape a better future for our farmers,” said Kendall.

The paper comes hot on the heels of the Commission’s proposal to improve contractual relations in the dairy sector, which could become law by the end of this year.

The November forum will be attended by EU farm ministers, including DEFRA minister Jim Paice, and European Commissioners including the agriculture chief Dacian Cioloş.