NFU graduate trainee Gemma Harvey looks at unfairness in the beef supply chain, she writes:
When significant changes were made to beef payment grids at the beginning of this year £1 million was removed from producer payments in a one month period, when compared to year earlier levels, according to AHDB research.
This huge impact on farmer returns is unacceptable, and, when combined with the lack of notice many farmers were given of these changes, highlights the imbalance of power that currently exists within the beef supply chain.
This needs to be addressed. The livestock voluntary code of practice was put in place as a means to improve transparency and fairness within the beef supply chain. However, it has struggled to pull its weight due to its nature as a voluntary scheme, leading to a lack of respect from processors.
National livestock board Chairman Charles Sercombe, in response to these changes to beef payment grids, said earlier this year, that it was time for the voluntary code of practice to be brought under the remit of the Grocery code adjudicator (GCA) in order to give it weight.
While this in the past has not been an option, a consultation has just been launched - thanks in part to NFU lobbying- to examine the possibility of extending the role of the GCA. We now have a very real opportunity to ensure that farmers are treated fairly, with sufficient notice periods and clear market information, to allow them to make informed business decisions. This, in turn, will improve the transparency of the supply chain and is an opportunity that we cannot miss.
While it may be obvious, on farm, that the imbalance of power and lack of transparency within supply chains needs to be addressed, we must be able to prove it and so we need your help.
The consultation is calling for evidence of how unfair trading practices, such as short notice periods on changes to specification, changes to the grid or other premium/deduction changes ,have impacted on farm businesses.
We need you to provide evidence to us which we can use in the NFU’s submission to the consultation to help bolster our case for the GCA extension.