NFU response to competition commission's final report
Wednesday April 30 2008
The NFU today welcomed the findings of the two-year long inquiry by the Competition Commission into the groceries market which should help improve the way the food retail market works.
The measures put forward by the Commission include:
• the creation of a new strengthened and extended Groceries Supply Code of Practice (GSCOP);
• a recommendation to establish an independent ombudsman to oversee and enforce the code
Commenting on the Commission's findings, NFU President, Peter Kendall said: "We're pleased that, after such an exhaustive investigation, the Commission has supported our long held view that the food retail chain is not functioning as it should and, if left unchecked, could have an adverse effect on consumers.
"A strengthened mandatory code of practice backed by a proactive ombudsman, which the NFU recommended, is exactly what is required to help develop a framework of improved transparency and fairness in the food supply chain.
"It is in everyone's interests that the food supply chain is transparent and profitable, so that farmers and growers are able to supply the quality and choice that consumers expect and deserve."
Mr Kendall said the NFU also welcomed the Commission's suggestion that Defra and the Department of Business, Enterprise and Regulatory Reform should consider the introduction of appropriate measures, including the extension of the GSCOP and the role of the ombudsman or the introduction of similar measures, to cover farmers supplying processors and other intermediaries.
Notes to editors:
The Competition Commission's final report is available at http://www.competition-commission.org.uk/rep_pub/reports/2008/538grocery.htm
