GCA Christine Tacon has made a positive impact on retailer-supplier relations, the FDF said, but extending her remit to the entire supply chain would hinder that progress.
“Evidence from FDF small and medium enterprises suggests the presence of the adjudicator is having a real and positive impact on supply chain relations,” an FDF spokesman told FoodManufacture.co.uk.
“The next logical extension would be to other large retailers and wholesalers. To roll out throughout the supply chain would provide unimaginable complexity.”
‘Unimaginable complexity’
The GCA already has a substantial amount of work, and extending its remit across the supply chain risks taking on too much work to make progress, the FDF claimed.
“There has been a huge volume of work generated in reviewing relationships between 10 retailers and their direct suppliers. To extend this to the whole supply chain would paralyse the progress that has been made.”
The FDF’s comments came after farming trade association Dairy UK said the GCA remit should include foodservice companies, small retailers and wholesalers.
“With limited resources available, the GCA has shown herself to be effective in improving commercial relationships between suppliers and retailers,” said Dairy UK chief executive Judith Bryans. “The clearest and most immediate benefit to the dairy sector will come from extending the remit of the adjudicator to large foodservice companies, smaller retailers and wholesalers.
‘They need to be brought under the scope’
“These outlets constitute an important and growing part of the market for dairy. They need to be brought under the scope of the Groceries Supply Code of Practice.”
Business minister Margot James announced on October 16 the GCA’s remit would be reviewed, after primary producers and farmers were concerned that they weren’t covered by the code. The review, which called for views on whether Tacon’s remit should be extended, closes in January.
The FDF said: “We plan to consult with members before responding in detail to the consultations launched by the Department for Business, Energy and Industrial Strategy.”
The GCA was established in June 2013, and currently oversees the relations between 10 of the UK’s largest supermarkets and their suppliers. The financial watchdog was at the centre of investigations in the 2014 Tesco accounting scandal, where the retailer overstated profits by £263 to reach company targets.
What they say about GCA’s remit review:
- “Whether the GCA’s remit should be extended is a matter for government, but manufacturers and processors could benefit from studying the positive experience of retailers and incorporating key elements of the code into their contracts with farmers who supply them. If the government does want to establish a body to oversee the whole food supply chains, it will need to set up a separate mechanism and fund it as the 10 retailers fund the office of the GCA and it would be totally unreasonable to expect them to pay for issues outside their control or responsibility.”
- British Retail Consortium
- ““Evidence from FDF small and medium enterprises suggests the presence of the adjudicator is having a real and positive impact on supply chain relations. The next logical extension would be to other large retailers and wholesalers. To roll out throughout the supply chain would provide unimaginable complexity. There has been a huge volume of work generated in reviewing relationships between 10 retailers and their direct suppliers, to extend this to the whole supply chain would paralyse the progress that has been made.”
- Food and Drink Federation
- “With limited resources available, the GCA has shown herself to be effective in improving commercial relationships between suppliers and retailers. The clearest and most immediate benefit to the dairy sector will come from extending the remit of the adjudicator to large foodservice companies, smaller retailers and wholesalers. These outlets constitute an important and growing part of the market for dairy. They need to be brought under the scope of the Groceries Supply Code of Practice.”
- Dairy UK