A letter to the Grocer about the Groceries Code Adjudicator

Sir,

During the past fortnight I have sat in front of two House of Commons committees to explain why I believe a new Groceries Code Adjudicator would help put an end to unfair supply chain practices among the big supermarkets.

The NFU has campaigned for more than a decade on this issue. It is three years since the Competition Commission recommended the establishment of an Ombudsman based on a clear recognition that unfair commercial practices were occurring in the grocery market. It is now over a year since the Groceries Supply Code of Practice (GSCOP) came into force. We need the introduction of an Adjudicator to ensure fair play via the GSCOP, thereby encouraging investment and innovation that would ultimately benefit consumers.

Last week the Efra Select Committee recommended that the Adjudicator be given broader powers than those found in the draft Bill, such as allowing third parties like the NFU to make complaints on behalf of their members. We welcome the Committee’s stance and urge DBIS to take its views on board in preparing the final Bill. Giving the Adjudicator the power to launch investigations on the basis of credible evidence, including from third parties will send a strong message to retailers that unethical business practices will not be tolerated.

I do not, as Kevin Hawkins recently said in the Grocer ‘pin my hopes on the benign effects of regulation’. But faced with systematic abuse, I believe strongly that regulation is needed to ensure we have supply chains which work fairly.

NFU President Peter Kendall
Agriculture house
Stoneleigh Park
Warwickshire
CV8 2TZ

02476 858686