Farmers in fear of 'store retribution'
Farmers continue to suffer unfair treatment at the hands of buyers, a new report claims.
Almost one in five suppliers to the country's biggest supermarkets say they would not raise any issues with an independent adjudicator, mainly because they fear retribution.
A survey of 1,000 suppliers showed other reasons included not being confident a complaint would remain confidential, or not being sure anything would be done.
The Groceries Code Adjudicator, Christine Tacon – a governor of Shropshire's Harper Adams University – released the findings at the second annual conference of the organisation, which was set up to oversee the relationship between supermarkets and their suppliers.
The adjudicator has launched one formal investigation, against Tesco, with the outcome expected within the next few months, and has arbitrated in two cases.
The number of suppliers reporting Grocery Code issues in their dealings with the 10 biggest retailers in the past year was 70 per cent, down by nine per cent over the previous 12 months.
Issues included delay in payments, unjustified charges for consumer complaints and an obligation to contribute to marketing costs.
Ms Tacon said complaints about overcharging suppliers for packaging and design of products was one of the main issues she was dealing with.
She has "closed down" concerns that suppliers were being overcharged by retailers for handling consumer complaints about products they supplied.
Farming leaders in Shropshire today called for better training so suppliers knew how to complain when they felt they had been wronged.
NFU food chain adviser Tom Lander said: "The NFU commends the work and progress Christine Tacon has made over the past year.
"We share her disappointment, however, that many suppliers are still afraid to raise their concerns with the Groceries Code Adjudicator about bad practice for fear of retribution – it does go to show the balance of power within such a volatile trading environment.
"Similarly, it is also disappointing to know that only a small percentage of suppliers have been trained on how to apply the code to their businesses and their partner relationships within the supply chain.
"It is essential that farmers and growers know as much as they can so they can use the code in negotiations and to highlight where they know it is being breached."
The survey showed 54 per cent of those who raised issues with the adjudicator in the last year concerned Tesco, compared with 26 per cent about Morrisons, 15 per cent Asda, 14 per cent the Co-op, 13 per cent Sainsbury's, five per cent Iceland, one per cent about Marks & Spencer, Waitrose and Lidl, while none concerned Aldi.
