News • Sustainable Farming Campaign
Taskforce recommends EU laws to end retailers' unfair trading practices
A report commissioned by the European Commission that calls for legally binding rules to protect farmers from retailers' unfair trading practices has provoked a fierce reaction.
The Agricultural Markets Taskforce was set up by the EC in 2015 to examine the trading relationships between European farmers and the large food businesses -- notably retailers -- they supply.
The Taskforce has now produced its report, available here, which finds that farmers, whose businesses are often small and fragmented, 'are becoming the main shock absorber in the supply chain'.
While voluntary measures have had some success in squeezing out unfair practices, there is still a strong 'fear factor' that prevents suppliers from coming forward to complain. Consequently, the report recommends that framework legislation be introduced at EU level to cover the commonest unfair practices (such as long payment periods), as well as to mandate effective enforcement regimes in Member States -- such as an Adjudicator. (The UK already has a Grocery Code Adjudicator, whose role and remit are currently under review).
The Taskforce's recommendations have provoked the wrath of the food industry. As reported on Foodnavigator here, Eurocommerce, a retailers' trade body, said that retailers were 'dismayed' and that the report 'had succumbed to political pressure' and reflected a 'poor understanding' of how commerce works'.
Read more here about Sustain's campaigning work for a greener, fairer food system.
Published Friday 18 November 2016
Sustainable Farming Campaign: Sustain encourages integration of sustainable food and farming into local, regional and national government policies.
