The NFU is calling for the Grocery Code Adjudicator’s remit to be extended to inforce the principles of the voluntary codes and for the GSCOP remit to be expanded.
Both Ministers heard of examples where buyer power within the supply chain pushes excessive risk and cost onto farmers and growers who have no ability to mitigate against.
This includes a lack of notice of a price change, unreasonable notice of specification changes and unreasonable contract terms to name a few. The buying power of the supply chain ultimately limits a farming businesses ability to operate effectively in the long term, as goalposts are consistency being moved at short notice. There needs to be a level playing field which allows for competitive and profitable farming businesses to trade fairly and lawfully, to deliver the requirements of the market.
Ministers also heard evidence regarding the need to extend the scope of businesses the Grocery Suppliers Code of Practice (GSCOP) regulates, and the urgent need that the Ornamental sector needs to be included in the scope of products it covers.
NFU Ornamental growers who supply directly to the top 10 retailers have raised concerns that their businesses are suffering the same unfair and unlawful purchasing practices that GSCOP prohibits. It is vitally important this sector is included within the scope of GSCOP in order to ensure the principle of fair and lawful dealing is enforced in Ornamental supply chains.
The meeting followed the close of the BEIS consultation into extending the remit of the GCA. The Government response is expected in late spring 2017.
The NFU submitted written evidence into the consultation, which supported the need for the following key asks:
- Reduce the turnover bracket of GSCOP to include more retailers, food service and food manufactures
- To include the Ornamental sector within the current scope of GSCOP
- To make the principles of the voluntary codes of practice compulsory and for the GCA to oversee these, giving them more teeth
- To give the GCA the ability to take evidence from primary producers
We would encourage NFU members to write to their MP’s to raise their concerns of unfair trading practices. The NFU have provided template letters, which can be found by clicking here.