Buying code for supermarts near
Buying code for supermarts near
By Alistair Driver
THE introduction of a code of practice designed to protect farmers from supermarkets who abuse excessive buying power is moving closer.
Prompted by the ongoing Competition Commission supermarket inquiry, the big retailers are currently having talks with the NFU about drawing up a food industry code.
"All the major supermarkets are keen and I believe we can now develop a credible code of practice regardless of the findings of the inquiry," said NFU head of food and marketing Helen Lo.Five supermarkets, Tesco, Sainsburys, ASDA, Safeway and Morrisons, are involved in hearings this month, after which the commission will decide if they operate against the public interest. Last month it included a code of practice in a list of possible remedies if required.
"The food industry should be mature enough to work together to come up with something that suits everyone before the commission forces a code on to the industry," said Ms Lo.
"The way the code is policed and who "owns" it will be crucial.
The Tenant Farmers Association has urged the commission to introduce a statutory code if it finds that supermarkets have been abusing their power. TFA chief executive George Dunn said:
"The inquiry is a welcome opportunity to discover where the difference between farm gate and retail price goes." .
• Supermarket movement on milk prices? See p19.