The Groceries Supply Code of Practice (GSCOP) sets out how grocery retailers should treat their suppliers and aims to make sure that they do not abuse their commercial power. For example, retailers bound by GSCOP cannot make changes to the terms of supply retrospectively and must provide reasonable notice when de-listing a supplier. Last year the CMA also added Ocado and B&M Homestores under its remit, bringing the total number of regulated retailers to 13.
NFU food chain adviser Christine McDowell said: “The NFU has lobbied hard over the past few years for the Competition and Markets Authority to extend the remit of the Groceries Supply Code of Practice (GSCOP) to include more retailers and food service businesses, and we are pleased to see that Home Bargains are now bound by rules on treating suppliers fairly. Whilst this is a missed opportunity to not include other retailers and food service businesses under its remit, it does send a clear message to other grocery retailers than the CMA are serious about ensuring fair and lawful practice.
“GSCOP and the role of the Grocery Code Adjudicator, Christine Tacon, has done a good job in working with retailers to give more protection to businesses from unfair trading practices. The recent GCA survey showed that retailers have improved their buying behaviour in recent years but there are still improvements to be made, particularly on areas such as delays in payments, forecasting and promotions.”
The NFU continues to lobby hard on extending the remit of the Groceries Code Adjudicator to oversee trading relationships between primary producers and the onward supply chain. The current draft of the Agriculture Bill provides an opportunity for Government to regulate in this space, and protect our farmer and grower members from unfair trading practice.
“The NFU holds GSCOP training, at a discounted rate, for members supplying directly to the designated retailers. We would encourage all members to be trained in GSCOP in order to ensure they are aware of aware of how the GCA can protect their business from any unfair trading.