George Eustice MP has outlined proposals for the establishment of a new index to measure the conduct of the major supermarkets in a bid to toughen up the role of the proposed supermarket adjudicator.
The Farm Fair Index would identify bad conduct among the ten major retailers covered by the groceries code but protect the identity of individual suppliers. Under the proposal, there would be an anonymous panel of 500 farmers supplying supermarkets from a range of different sectors. Every three months the members of the panel would complete a questionnaire and be asked to score the supermarket buyers they are dealing with against the key criteria of the groceries code. These identify bad practices such as making suppliers pay for promotions, retrospective price changes and claw back arrangements to make suppliers pay for wastage. The questionnaire would also ask broader questions to assess how happy farmers are with their overall dealings with different supermarkets and would ask whether their conduct had got better or worse.
The results would be compiled into a quarterly league table of the ten major retailers and if any supermarket finishes bottom of the table for two consecutive quarters then it would automatically trigger a comprehensive investigation by the Supermarket Adjudicator of its entire buying department.
George Eustice said, "Supermarkets pay lip service to the groceries code but it doesn't translate down to the buyers on the ground and that is why the Supermarket Adjudicator is an important step forward. However, the big problem with the current proposal is that farmers and suppliers are fearful to lodging complaints in case there are reprisals. The Farm Fair Index solves that problem by aggregating data from an anonymous panel of suppliers and the threat of a comprehensive investigation of all their dealings creates a powerful incentive for supermarkets to raise their game.
George Eustice raised the idea with Caroline Spelman during an evidence session on the EFRA Select Committee recently and has written to NFU President Peter Kendall to ask him to help set the index up.
George Eustice said, "Farmers have to understand that government can't solve this problem alone. Farmers have to play their part and I very much hope that the NFU will help take this idea forward."
Update 14/6/11
George Eustice MP again pressed NFU President, Peter Kendall, today as the EFRA Select Committee took evidence from the NFU and other farming representatives concerning the Groceries Supply Code of Practice Adjudicator.
Mr Kendall thanked George for his proposals and confirmed that the NFU were actively considering them. He stated that any index must be “as robust as possible”.