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GCA actions will be of 'benefit to the whole supply chain,' says FUW

After a meeting with the Grocery Code Adjudicator, FUW said while the GCA cannot directly influence the price paid to a direct supplier, it is hoped its actions will be of benefit to the whole supply chain.
FUW president, Glyn Roberts
FUW president, Glyn Roberts

The Farmers Union of Wales (FUW) has had a follow-on meeting with the Groceries Code Adjudicator, Christine Tacon, to discuss its remit and identify how best to use the Code for the benefit of suppliers.

 

The watchdog was formally established in 2013 to ensure supermarkets treat their suppliers lawfully and fairly - but so far only retailers with a groceries turnover greater than £1 billion are included in its remit.

 

Lower threshold

 

The FUW has repeatedly called for this threshold to be lowered so other retailers can also be held accountable for unfair practises.

 

FUW president, Glyn Roberts, said it was to be hoped that recent recommendations put forward for Tesco would demonstrate to the other large retailers what constituted unfair practice.

 

“Ms Tacon made it clear to us that the Groceries Adjudicator cannot directly influence the price paid to a direct supplier but by working to change culture and improve transparency and efficiency, it is to be hoped its actions will be of benefit to the whole supply chain.

 

Paramount importance

 

“She also told us that she was unable to launch any investigation into a retailer without receiving information from suppliers.

 

“Protecting possible breaches of the confidentiality of direct suppliers was, however, of paramount importance and the strength of the adjudicator was directly proportional to the number of representations made by suppliers.”

 

Alongside a supplier survey soon to be available on the Groceries Adjudicator’s website a consultation was also to be launched into practices related to indirect payments for better positioning.


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