Farmers are calling on the government to expand the remit of the Grocery Code Adjudicator (GCA), as a review of the office was launched on Tuesday.  

Business Minister Margot James launched a statutory review into the performance of the watchdog, who was appointed in 2013 to arbitrate between the country’s ten largest supermarkets and their suppliers. However, the adjudicator, Christine Tacon, has only had the power to fine supermarkets found to be in breach of the code of practice governing the supply chain since last year, and can’t take evidence from indirect suppliers to supermarkets.

Since Tacon’s appointment, the Business department believes “there has been significant progress on issues covered by the Groceries Code.” A recent YouGov survey showed an 8% fall in relevant issues reported by supermarket suppliers from 2015, and a 17% decrease compared to 2014, and evidence suggests written supply agreements are more common in the sector. As part of the review, the department will consider expanding the watchdog’s remit.

Commenting on Tuesday, Business Minister Margot James said, “It is important that suppliers of all sizes get a fair deal when working with supermarkets. The Groceries Code Adjudicator is making a significant impact, with suppliers reporting that nine out of the 10 retailers covered have improved their compliance with the Code over the past year.

“We are also looking at evidence for extending the GCA’s remit in recognition of concerns raised by other suppliers in the grocery sector – particularly primary producers and farmers – who are not covered by the Code. Government wants to do all it can to help these businesses and we look forward to hearing their views and those from across the sector.”

As part of the review, government is collecting evidence from industry. The NFU is urging businesses in the sector to provide evidence to support an extension of the ombudsperson’s role.

NFU President Meurig Raymond commented, “The GCA plays an important role within the grocery sector and we must recognise the success Christine Tacon, the GCA, has achieved within the retailer sector over the last three years. The NFU believes the power of the GCA’s presence has enabled this change and therefore this way of working now needs to be replicated throughout the whole supply chain.”

Mr Raymond said, “We would like to see agri-sector voluntary codes of practice, such as the Dairy and Livestock Voluntary Code, made compulsory and overseen by the GCA to give them more teeth.  This will give primary producers the confidence that the supply chain is not abusing their buying power and position over that of the British farmer.”

More information on the consultation can be found here.