Andrew Turner, the Island’s MP, has welcomed proposals to introduce a new Supply Chain Ombudsman. The plan was announced by Shadow Environment, Food and Rural Affairs Secretary Nick Herbert MP, at the Oxford Farming Conference and has been widely welcomed. The new office is designed to ensure that food producers are treated fairly by supermarkets and would govern disputes between retailers and suppliers. In particular, supermarkets would be unable to exploit their position by lowering previously agreed prices - known as retrospective discounting – leaving farmers operating at a loss. The suggestion of a Supply Chain Ombudsmen was put forward by the Competition Commission over a year ago but has been delayed by the Government in favour of a new code of practice.

Mr Turner said:
“Owing to their dominant position in the market, supermarkets can dictate terms to food producers who rely upon them as a primary source of income. If a supermarket reneges on an agreed deal and demands lower prices, there is at present very little small farmers and food producers can do. A number of Island producers have raised concerns about this with me.

“Though a code of practise exists, it is not strong enough and is frequently flouted by some supermarkets. A Supply Chain Ombudsman would ensure that food producers receive the protection they need to do business fairly. Farmers need to be sure that Supermarkets are not able to exploit their dominant position. Although the Competition Commission recommended the creation of this office over a year ago the Government is still caught in two minds about whether or not to introduce it. Such a delay harms the interests of British farmers. Rural areas like the Isle of Wight with many small food producers and farmers would benefit greatly from this policy which will be introduced if the Conservatives win the General Election. Nobody benefits if good, small producers are forced out of business by sharp practice from the supermarkets and in the end it will be the consumer that suffers.”

END Contact : Andrew Turner’s office 01983 530808