Farming News - Europe-wide code of practice to counter supply chain bullies

Europe-wide code of practice to counter supply chain bullies

A new pan-European code of practice has been developed with the intention of distributing power more equitably throughout the food supply chain. The Principles of Good Practice paper has been welcomed by UK farming groups; the NFU described the paper as "an ambitious plan to fight food chain bullies."     image expired

The paper, which was drawn-up by a high-level group of stakeholders, including farmers, manufacturers and retail representatives from across the European Union, was presented to the European Commission this week by European farmers’ organisation Copa-Cogeca.

Peter Kendall, NFU president and chair of the Copa-Cogeca Food Chain Working Group, hailed the paper as a "positive step to improve the functioning of the food supply chain" resulting from a successful partnership. He said, "I am delighted that this European food chain partnership has come together to address the unfair commercial practices sometimes experienced by our members. This is the first step towards improving the bargaining powers of farmers within the food supply chain and responds to the needs of the new CAP."

The plans will be considered by the European Commission’s High Level Forum for a Better Functioning Food Supply Chain in November. Copa-Cogeca’s paper calls for an end to threatening behaviour from contracting parties in favour of fair contract terms. It is hoped the plan will form the basis for legislative proposals in the EU.

The Copa-Cogeca paper comes hot on the heels of the Commission’s proposal to improve contractual relations in the dairy sector, which could become law by the end of this year. EU farm ministers, including Defra minister Jim Paice, and top commissioners such as agriculture commissioner Dacian Cioloş will attend the forum on the paper in November.

Mr Kendall said he hoped the new code of practice would "shape a better future for our farmers."