Farm leaders have welcomed the government's decision to accept recommendations to create a supermarket ombudsman.
The Department for Business, Innovation and Skills announced plans to form a watchdog on Wednesday (13 January) after the Competition Commission called for a body to monitor retailers' relationship with suppliers.
Subject to a consultation to decide upon the ombudsman's powers, the watchdog will enforce the updated Grocery Suppliers Code of Practice, due to come into force on 4 February.
NFU president Peter Kendall said while the consultation period meant farmers still had to wait for an ombudsman, the announcement was a "light at the end of the tunnel".
"It is vital that when the new strengthened code comes into force we have a proactive and robust enforcement mechanism in place as soon as possible," he said.
"Ministers have taken the right decision and 2010 must be the year we begin to eradicate unfair dealing and protect investment and innovation in British agriculture for the benefit of consumers."
NFU Scotland president Jim McLaren agreed an ombudsman was in the best interests of producers, retailers and consumers.
"Without an independent policeman, the strengthened supermarket code of practice that comes into force in February would be of very little value indeed," he said.
"With a General Election looming, it is important that whatever shape the next government takes, the momentum behind the creation of a supermarket ombudsman must not be lost."
Shadow farm minister Nick Herbert agreed the announcement was a step forward, but slammed the government for failing to take decisive action by opening another period of consultation.
"Ministers have had since April 2008 to take forward the Competition Commission's recommendation and now they still don't know what shape the Ombudsman should take," he said.
"Conservatives are clear - we would establish a supermarket Ombudsman to enforce the grocery supply code as a dedicated unit in the Office of Fair Trading to ensure a fair deal for producers and safeguard the consumer interest."
However the British Retail Consortium claimed an ombudsman would do little except create costly bureaucracy which could cost consumers millions of pounds in higher prices.
Stephen Robertson, BRC director, said there was no evidence an ombudsman was even needed.
"There is already a supplier code, overseen by the Office of Fair Trading (OFT) and offering the right to independent arbitration," he added.