The NFU wrote to Neil Parish MP in December to raise concern that Government has delayed responding to a consultation carried out 12 months ago by the Department for Business, Energy and Industrial Strategy (BEIS) calling for evidence to extend the remit of the Grocery Code Adjudicator (GCA). The NFU urged that the EFRA Committee holds Ministers both within Defra and BEIS to account. The NFU are pleased to see Neil Parish write to Ministers on this matter. Read our letter to Neil Parish MP here.
The NFU submitted substantial evidence into the BEIS consultation demonstrating that poor purchasing behaviours exercised by ‘middle-men’ within the supply chain are causing unfair pressures at primary producer level, ultimately passing risk and costs onto farmers and growers, who by their nature have no other option but to absorb these costs. Common themes could be drawn out across all agri-sectors, including lack of price or specification transparency, unreasonable costs of doing business and unfair contract terms to name a few. Farmers and growers are unable to push back on these unfair trading behaviours, in turn limiting any opportunities to budget effectively, manage price volatility or run a profitable business. Farmers are rightly concerned about investing for the future.
The NFU urged Mr Parish to hold Defra and BEIS accountable to ensure that properly functioning supply chains are in a better place sooner rather than later; to ensure British farmers and growers are operating with a fair and transparent supply chain to allow British agriculture to invest for a future outside of Europe. It is imperative for the future viability of the UK agricultural industry, that businesses trading with British farmers and growers take accountability of their trading responsibilities.
The letter also highlighted the case that the rest of the supply chain can learn from the success of the GCA and GSCOP. To ensure end to end fair dealing within the supply chain, the need was stressed to include more retailers and food service businesses under the remit of the current GSCOP, whilst also extending the scope to further include other perishable goods such as ornamental crops; of which growers supplying directly to retail suffer the same unfair trading practices explicitly banned under the GSCOP law. Coupled with this, the NFU also called for the principles within agri-sector voluntary codes to be brought under compulsory legislation and over seen by an adjudicator to give them more teeth.
The letter also outlined the work the NFU conducts as it strives to work with the GCA by supporting her calls in raising awareness of her role, as well as giving members a further level of confidentiality if they face a breach of the ‘Code’. The NFU also offers training in the code, discounted to members supplying directly to retail. More information regarding training can be found here..
The NFU also wrote to Ministers, expressing the importance a fair and transparent supply chain, urging Government to take action.
Read our letters to Ministers here: