Supermarkets suppliers hope for protection
Supermarkets suppliers hope for protection
By Isabel Davies
FARMERS should learn in the next few weeks whether the government will take action to protect the interests of suppliers dealing directly with supermarkets.
The Competition Commission this week sent a copy of its report into the supermarket sector to the Department of Trade and Industry for consideration by secretary of state Stephen Byers.
Details of the report, which has taken 18 months to prepare, are being kept under wraps until Mr Byers makes his final recommendations. No date has been set although the minister has promised to make his findings known as quickly as possible.
Speculation on what is contained in the report has centred on those aspects designed to benefit shoppers. But measures which would help protect the interests of farmers and growers are also thought to be included.
One of these is believed to be a recommendation to force supermarkets to publish details of the wholesale price of goods next to the sale price. Another is a code of practice which farmers think would help make sure they are treated fairly and reasonably.
But prompted by the Competition Commission inquiry the supermarkets have already made progress on a voluntary code of practice.
Last Friday, the Institute of Grocery Distribution sent a copy of a code produced jointly by six of the retailers to farm minister Nick Brown for approval.
Fulfilled commitment
The code, Working together – Code of Best Practice, has been developed by Asda, Morrisons, Safeway, Sainsbury, Somerfield and Tesco with the IGD acting as a facilitator.
NFU president Ben Gill welcomed the news that the supermarkets had fulfilled their commitment to produce a code which they made at the Prime Ministers farm summit in March.
"It is critical in these poor economic conditions that suppliers and retailers develop a close relationship," he said.
"We have been pressing multiple retailers to produce a workable guide that recognises the needs of both the retailer and producer.
"We need not just to establish best practice but clear rules for dispute resolution, including most importantly, the right to seek independent mediation as a last resort."
Mr Gill promised the union would continue to push retailers to produce their own code of practice based on the principles established by the IGD.
Some retailers have already done so. This week Asda followed the example set by Sainsbury and published their own version of the code of conduct. *