UK Grocery Fairness: Can the Adjudicator Fix the Food Chain?

Today we explore the role and limitations of the Groceries Code Adjudicator (GCA), which oversees fair trading between large UK supermarkets and their direct suppliers. Despite being intended to protect producers and consumers, many argue its remit is too narrow, covering only the largest retailers and often missing primary producers further down the chain. Suppliers fear retaliation if they complain. Proposals include widening the GCA's scope, reducing the turnover threshold for covered businesses, giving it more powers (like initiating inquiries and regulating prices), or creating a new regulator for the entire supply chain. The goal is to ensure fairness, support domestic producers, and enhance food security.

Key Takeaways:

• The Groceries Code Adjudicator (GCA) was established to ensure fair trading between large retailers and suppliers.
• It currently applies only to the largest grocery retailers (turnover over £1 billion).
• Many believe the GCA's powers and scope are too narrow and that it needs "more teeth".
• There are calls to extend the GCA's remit to include more retailers, food service providers, manufacturers, and even the ornamental sector.
• Producers and farmers often feel left out, as the code primarily covers direct suppliers to the large retailers.
• A significant fear of reprisal or being "blacklisted" prevents many suppliers and farmers from raising complaints.
• Some propose giving the GCA power over price floors and ceilings or initiating its own investigations.
• There is a call for a more holistic regulator that covers the entire food supply chain, from farm to shelf.

Important Definitions and Concepts:

• Groceries Code Adjudicator (GCA): A body set up to enforce the groceries supply code of practice, ensuring fair dealing between designated large retailers and their direct suppliers.
• Groceries Supply Code of Practice: The set of rules that designated grocery retailers must follow in their dealings with suppliers, which the GCA enforces.

Source: Groceries Code Adjudicator
Volume 768: debated on Tuesday 3

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