Minister on farm visit ahead of adjudicator launch later this month
 
With the UK’s recently appointed adjudicator for the grocery sector accepting evidence from the end of this month, NFU Scotland seeks to ensure the adjudicator role and policing of the Groceries Supply Code of Practice is both strong and effective.

NFU Scotland officials underlined those points when they met with Parliamentary Under-Secretary for Business, Innovation and Skills (BIS), Jo Swinson MP on farm today (Thursday, 6 June).  

Beef farmer Tom French, chairman of NFU Scotland’s Forth and Clyde region, hosted the meeting with Ms Swinson at Crawfordjohn in South Lanarkshire.

NFU Scotland first raised the need for an ombudsman to police the retail sector when delegations from Union’s milk committee lobbied politicians in Westminster and Holyrood in 2006.  In January of this year, Christine Tacon was unveiled as the inaugural, independent Groceries Code Adjudicator to enforce the Groceries Supply Code of Practice, which oversees the relationship between the UK’s ten major retailers and their suppliers.  She will start accepting evidence on 25 June.

NFU Scotland President, Nigel Miller said:

“This was a very useful meeting with the Minister where we had an excellent opportunity to lay out what we want the code and the adjudicator to deliver for the benefit of the whole food chain – from the primary producer all the way to the consumer.

“Compliance with the code presents an opportunity to ensure balance and fairness exists in the operating environment between retailers and those who supply them with food.  In discussions that we have had in private with Scottish food processors, it is clear that to secure improvements there needs to be changes to the current culture that exists between retailers and suppliers.

“There are areas within our retail chain where progress has been marred by a short-term approach to relationships and that has affected investment and stability.

“The appointment of Christine Tacon as adjudicator gives us a respected, independent third party with wide-ranging industry experience to police our retail sector.  In a few short weeks, she will start to accept evidence and we urge those concerned about supply chain arrangements to make full use of this opportunity.

“Anonymity remains a major concern for those considering contacting the adjudicator and that was a matter we discussed in depth with the Minister.  There may be a role for NFUS in assisting members in making contact with the adjudicator, acting on their behalf as a third party or even collating evidence from a number of sources before approaching the adjudicator.  

“We certainly envisage a role for NFUS in gathering information and recording incidents across industry to keep the adjudicator informed of how the operating environment between retailers and processors is developing and, hopefully, improving.  However, where necessary, we will bring specific incidents of complaint to the adjudicator’s attention for further investigation.”

NFU Scotland also used the Ministerial visit to discuss the financial position of many farm businesses and the ongoing need for Westminster to promote banking practices that help support small businesses at this time.

NFU Scotland Chief Executive, Scott Walker said:
 
“Our most recent survey looking at weather impacts underlined the concerns that our members have with regards to accessing finance and the varying degrees of support they receive from different banking groups operating in Scotland.

“Farming is an industry where it can take months or years to bring products to market.  It needs a banking sector to promote stability and investment through providing competitive lending and long term funding.  

“With little prospect of significant recovery in our farming sector until 2014, we need policies that assist with restructuring lending or supporting small businesses for the foreseeable future.”   

Notes to Editors

• Jo Swinson is MP for East Dumbartonshire and Parliamentary Under Secretary of State, Department for Business, Innovation and Skills
• Tom French, regional chairman for Forth and Clyde, hosted the meeting.  Mr French, who farms in partnership with his father Thomas, farms 200 acres at Crossknowe and Balgray farms, Crawfordjohn, South Lanarkshire.  He keeps 70 beef cows, selling the calves at 12 to 14 months of age.
• Christine Tacon has been appointed as the Adjudicator. Her office will be able to accept evidence of unfair practices from June of 2013, and begin investigating allegations from the end of the year once an acceptable level of fining for retailers who are found to be in breach of the code has been finalised. The adjudicator will investigate issues between retailers and their direct suppliers
• The Code of Practice oversees activities by the UK’s ten biggest retailers, each with an annual turnover of more than £1 billion: Asda, the Co-operative Group, Marks & Spencer, Morrison’s, Sainsbury’s, Tesco, Waitrose, Aldi, Iceland and Lidl.
• Photographs of the Ministerial visit are available on request from Bob Carruth on 07788 927 675 or bob.carruth@nfus.org.uk

Ends

Contact Bob Carruth on 0131 472 4006