Archived press release

Nfu proposals will not stop supermarket bullying

29 June 2004

The NFU Council is meeting today to consider a proposal for a `Buyers Charter' as an alternative to the failing Supermarket Code of Practice. Friends of the Earth warns that this voluntary approach will not stop the big retailers bullying their suppliers. The environmental campaign group is part of an alliance of 15 consumer, farming and environmental organisations calling for a stronger statutory code of practice and an independent supermarket watchdog [1].

The Council papers - seen by Friends of the Earth - say that the `Buyers Charter' "seeks to address concerns of the Council about the abuse of buying power by supermarkets" and that it "provides a means for industry to take responsibility for its actions and its conduct". The NFU also recognises that the existing Supermarket Code of Practice has made "little or no progress in addressing the problems primarily relating to the often large size imbalance between the major supermarkets and their suppliers".

Friends of the Earth is surprised that the NFU should propose a new voluntary approach. One of the fundamental problems of the existing Code is that suppliers have to submit complaints to the supermarket and not to an independent body. This flaw is repeated in the new NFU proposal which says there will be a `Compliance Officer' within each buying company. If agreement cannot be reached the complaint would pass to a `Fairplay Panel'. Evidence from suppliers suggests they fear taking a complaint to the buying company in the first instance [2].

Supermarkets have had four years to put their own houses in order since the Competition Commission first highlighted their unfair treatment of suppliers. They have clearly failed. The only way forward is for a strong statutory code to be brought in. The current code is so weak that the supermarkets agreed to be bound by it. What is needed is a statutory code imposed by the government. It is also essential that an independent body is set up to oversee the code and take a proactive role in approaching suppliers about its effectiveness.

Friends of the Earth's supermarket campaigner Sandra Bell said:

"The NFU is meant to act in the interests of farmers, yet it is proposing a voluntary charter that will play into the hands of the big supermarkets. Instead the NFU should add its voice to the calls for the Government to impose a strong statutory code of practice which would give suppliers real protection. The NFU Council should reject this weak and ineffective proposal."

The NFU North Somerset, Wells and Weston-super-Mare branch has put a resolution to the Council calling for a statutory code and watchdog.

[1] www.breakingthearmlock.com

[2] Office of Fair Trading review of the supermarkets code of practice, February 2002

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Published by Friends of the Earth Trust