The groceries code adjudicator Christine Tacon has urged growers to come forward with their complaints about supermarkets without fear.
Speaking at Fruit Focus last week, Tacon said many controversial practices, such as suppliers being charged by retailers for the use of crates, are known by her office, but action will only be taken if enough suppliers complain.
Tacon explained during her speech: “There is a big opportunity to sort this industry out, but I will not launch an investigation based on one complaint from a supplier.
“However, if I were to receive10 complaints about the same supermarket I could take action. This climate of fear among suppliers of being delisted has to change – I will protect everybody with anonymity.”
The adjudicator will soon submit her guidance on the level of fines for supermarkets found guilty of breaching the Groceries Code to parliament, and will gain the power to launch investigations from 2014. Tacon said she believes any fines should be a “portion of annual turnover.”
In an exclusive interview with FPJ at Fruit Focus, Tacon said that her appointment had already resulted in positive progress for the fresh produce industry. She explained: “A lot of suppliers are saying they are no longer required to use a certain type of packaging by their retailer and are now getting it much cheaper than before, so I think we are seeing progress just by this role existing.”
Guy Poskitt, the acting chairman of the NFU’s Horticulture and Potatoes Board, said that the appointment of an adjudicator is like “having a policeman at the end of your street” and will force supermarkets to get their act together when creating contracts with fresh produce suppliers.
Furthermore, Tacon also praised the business structure of the discounters such as Aldi and Lidl, before revealing her main goal within the role.
“I think the discounters are very efficient, simple businesses. The practices involved in squeezing money out of suppliers do not seem to be prominent at all at the discounters.
“My main goal will be to hear direct suppliers telling me that they’ve noticed a difference. That is what I will continue to aim for.”
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