Fair trade watchdog welcomed

Feb 18 2008 by Sam Wood, The Journal

PROPOSALS to appoint a ‘super- market ombudsman’ will provide a long overdue guarantee of fair trade in the food supply chain, rural economy experts have said.

The proposals, detailed in the Competition Commission’s report published on Friday, accepted arguments put forward by Country Land and Business Association (CLA) chiefs over the last five years that tough measures were needed to combat market abuse by the big retailers.

CLA North East director, Angus Collingwood-Cameron, said: “It has been clear to us for some time that the Supermarket Code of Practice was totally ineffective – but, perhaps unsurprisingly, many small producers have been unwilling to go public with their complaints for fear of reprisals that could put their businesses in jeopardy, such is the market dominance of the big supermarkets.”

The CLA has been calling for an independent ombudsman since 2002 when over 30 organisations – including food producers, print and packaging suppliers and fruit and vegetable associations – met at the CLA’s London HQ to discuss the failure of the Supermarket Code of Practice to halt alleged bully-boy tactics.

Mr Collingwood-Cameron added: “It had become obvious that the Code of Practice was not effective in ensuring a fair deal for suppliers.

“We argued the case for an independent ombudsman to resolve pricing disputes between the big retailers and the rest of the supply chain, from farmers to packagers. But we have also consistently made the point that there needs to be a regulator with the teeth to deliver and the power to protect the anonymity of the complainant.”