Supermarkets: Supply Chains
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will make an assessment of the potential merits of introducing a Grocery Supply Code of Practice for all (a) upstream and (b) mid-supply chain businesses.
Answered by Daniel Zeichner
The Groceries Supply Code of Practice covers direct suppliers to large retailers in the UK and was introduced after a competition investigation into the grocery retail sector.
Power imbalances between trading businesses can make smaller parties susceptible to unfair trading practices.
At the production end of the supply chain, powers in the Agriculture Act allow us to introduce ‘Fair Dealings’ Regulations, applying to businesses when purchasing agricultural products from farmers. Such regulations have been introduced to cover the UK dairy sector.
We will continue to monitor the supply chain and can intervene where there is evidence of unfair behaviour.
The Government will deliver a resilient and healthy food system, with a new deal that ensures fairness in the supply chain across all sectors.
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