The UK Competition Commission's final report reeased on 30th April says that suppliers directly in contact with the supermarkets are transferring excessive risks and unexpected costs further up the supply chain.
In response, it has recommended a strengthened and extended Groceries Supply Code of Practice and the establishment of an independent Ombudsman, to govern the way retailers deal with their suppliers.
The main recommendations are:
Criticisms of the report include that it has declined to enable "creative and manufacturing" suppliers to be able to get redress for decisions made by supermarkets which directly impact them, because they say this was outside its terms of reference.
"That omission has left millions of small producers, primarily farmers, vulnerable to continuing to have the risks passed onto them", says Traidcraft. "Without the means to right any wrongs against them, the appalling behavior of transferring risk up the supply chain to those most vulnerable - a practice which the Commission report acknowledges takes place - will continue," said Fiona Gooch, Traidcraft Senior Policy Advisor.
ActionAid however have welcomed the findings: "The Competition Commission's recommendations are good news for the millions of poor workers, mainly women, around the world who produce and pack goods for the big four supermarkets. Faced with a crisis over global food supplies, the need for an ombudsman - a supermarkets watchdog - to ensure a fair and sustainable food chain is greater than ever. Supermarkets must play fair. If they reject the appointment of an ombudsman, the government must step in and impose one" said Dominic Eagleton, policy analyst at ActionAid.
The UK National Farmers Union (NFU) has also had a positive response. Commenting on the Commission's findings, NFU President, Peter Kendall said: "We're pleased that, after such an exhaustive investigation, the Commission has supported our long held view that the food retail chain is not functioning as it should and, if left unchecked, could have an adverse effect on consumers
The Commission has also suggested that Defra and the Department of Business, Enterprise and Regulatory Reform should consider the introduction of appropriate measures, including the extension of the GSCOP and the role of the ombudsman or the introduction of similar measures, to cover farmers supplying processors and other intermediaries.
"The Department for Agriculture and Rural Affairs, and the Department for Business Enterprise and Regulatory Reform, must act now to extend the role of the Ombudsman so that all people working in the grocery sector supply chain are treated fairly. We welcome the establishment of an independent Ombudsman but for the role to be a sufficient deterrent to stop anti-competitive practices by retailers, it needs to be able to compensate suppliers appropriately and fine retailers at a proportionate level for non-compliance. And customers and shareholders should be told when the Ombudsman discovers violations," says Traidcraft.
Friends of the Earth are also concerned: "the Competition Commission has recommended a narrow remit for the Ombudsman - simply overseeing the Code of Practice, which the supermarkets will be asked to voluntarily agree to. We could be left with a watchdog without teeth."
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Asda chief executive Andy Bond will today pledge to source an additional £30m worth of fresh produce from African farmers over the next five years.
His pledge will be delivered at the Africa Millennium Goals Summit, hosted by Prime Minister Gordon Brown.
As part of its commitment, the retailer will increase the amount of Kenyan flowers it sources by 20% by the end of 2008.
It will also buy significantly more bananas, citrus fruits, mangoes, and avocadoes from African farms.
Bond is one of 80 industry leaders, including CEOs of leading global companies, senior ministers from the UK and leaders of global business associations, who are involved in the "call to action" to help develop trade in Africa.
Bond commented: "We are integrating Africa more and more into our business plans in order to increase trade with the continent. Our pledge of an extra £30m investment in fresh produce will help cement long-term relationships with African farmers and growers.
"We don't claim to have all the answers, but we believe signing the Millennium Development Pledge is an important step.
"Whilst the vast majority of our produce will always be sourced locally, as a major UK retailer we can help address poverty in Africa through the procurement of more of its goods.
"This in turn will provide much-needed jobs and opportunities for thousands of people across the continent."
Rate this:
---Excellent!Great!GoodQuite goodNot so great
According to reports in the British press, Asda has dropped its opposition to overseas suppliers being included in a new code of conduct designed to protect against unfair terms imposed by UK grocery chains.
]]>According to reports in the British press, Asda has dropped its opposition to overseas suppliers being included in a new code of conduct designed to protect against unfair terms imposed by UK grocery chains.
Prior to the Competition Commission's final report, Asda submitted a statement to the body urging it to exclude overseas suppliers from the proposed code, arguing that British grocers would be at a disadvantage because overseas suppliers had customers in other countries. A spokesman for Asda said: "During the Competition Commission inquiry we had concerns about the cost and complication of extending the code overseas. We have since been reassured that it's workable. We already have a strict ethical code of conduct that applies to all our suppliers both here and overseas, so it wasn't a matter of ethics, just a matter of resisting unnecessary bureaucracy. We're broad-shouldered enough to change our minds and drop our opposition."
Copyright www.planetretail.net
Rate this:
---Excellent!Great!GoodQuite goodNot so great
The UK's biggest supermarket first announced its intention to put carbon counts on up to 70,000 products some 15 months ago. They will start to roll this out across Tesco own brand products very shortly.
Tesco states it has been working with the Carbon Trust to find an accurate method of labelling. "It has not been simple, but we are there," said CEO of Tesco Terry Leahy on 15th April. Tesco will unveil the details of the scheme shortly, and the chief executive said he hoped the labels "will end up being a standard".
This may however be a premature rush for first advantage in an increasingly competitive push for green credentials by retailers. The public consultation led by the Carbon Trust and the British Standards Institute (BSI) on an agreed set of methodologies to measure how much carbon is actual in our food - from seed to plate - is not yet in its final form. The BSI standard is not due in its final form until June and even with the standard in place, there is much work left to do in implementing it and in gathering the data needed - throughout what is a very complex set of supply chains.
Another contentious issue is that the BSI standard does not address the issue of labelling at shelf level - something that Tesco is very keen to move forward with. Some other retailers state that shelf-level labelling will add to consumer confusion, preferring to work behind the scenes with suppliers to reduce 'carbon hotspots' in the supply chain on the consumers' behalf.
What is certain about the Tesco launch, whether premature or not, is that it will raise consumer awareness of carbon issues and will also help to dispel the food miles fallacy that "local" is always best for the environment.
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great
Rate this:
---Excellent!Great!GoodQuite goodNot so great