Brussels

Unfair supply chain practices must be tackled

Ulster Farmers’ Union president, Barclay Bell, says the EU’s European Commission and UK government must ensure recommendations from the Agricultural Markets Task Force are implemented.  He claims this is the best way to secure meaningful change in the supply chain.

Article key points

  • Agricultural Markets Task Force has put forward a series of recommendations that would help the food supply chain to work better and strengthen the position of farmers.
  • The recommendations include: increasing market transparency through mandatory price reporting, enhancing cooperation between farmers, facilitating farmers' access to finance, improving the take-up of risk management tools, and new rules to cover unfair trading practices, linked to effective enforcement by member states.
  • Recommendation have potential to deliver real change for farmers and the UFU is encouraging EU Commission and UK government to ensure the recommendations are implemented.

“We have long argued that all too often it is the producer that bears the brunt of unfairness in the supply chain. This report supports this view and offers recommendations that would make the food supply chain work better and strengthen the position of farmers,” said Mr Bell.

The report is being discussed by European agriculture ministers at a meeting today (15 November). Recommendations include: increasing market transparency through mandatory price reporting, enhancing cooperation between farmers, facilitating farmers' access to finance, improving the take-up of risk management tools, and new rules to cover unfair trading practices, linked to effective enforcement by member states.

“I am encouraged by these recommendations. More transparency along the food supply chain is long overdue. The recommendation for mandatory price reporting is very positive and would be a significant step towards tackling unfairness.  This is already in place in the United States and is working well,” said Mr Bell.

In the UK, there is already a drive to tackle this unfairness with the creation of the Groceries Code Adjudicator (GCA).   “The UFU, along with the other UK farm unions, helped bring about the GCA.  However, the GCA only covers the UK, which is why it is good news that the task force has recommended similar protection at an EU level,” said Mr Bell.

Mr Bell said many of the recommendations have the potential to deliver real change for farmers.  He urged the UK government to help secure European legislation and to toughen UK rules as it prepares for Brexit.  “The UK supply chain is far from perfect.  The issues we face are similar to those in the EU. Time and time again we see producers being failed by an unfair supply chain.  These recommendations and the principles on which they are based provide an opportunity to rectify this,” said the UFU president.