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Farmers’ union calls for improved fairness in food supply chain

Written by: Supply Chain Online
Published on: 16 Nov 2016
Category:

NFU

Farmers’ union calls for improved fairness in food supply chain

Meurig Raymond, the head of the National Farmers’ Union (NFU), has requested that the European Commission and the UK Government repair the faults identified throughout the European food supply chain by acting on the recommendations listed in a report by the Agricultural Markets Taskforce.

The Taskforce’s report offers a range of suggestions designed to improve the operation of the food supply chain and boost the position of farmers. Proposed solutions include improving cooperation between farmers, encouraging market transparency through obligatory price reporting, increasing the adoption of risk management tools and boosting farmers' access to finances.

The report also asks for new rules to be implemented at an EU level to end unethical trading practices in the food chain, including the occurrences of contracts being reneged and supply schedules being altered. It also calls for enforcement regimes to be implemented in member states, such as the provision of an adjudicator where disputes arise.

Mr Raymond said that he welcomes the report and its recommendations. He is encouraged by the fact that the NFU was able to offer a great deal of input into the Agricultural Markets Taskforce’s overall suggestions for the UK Government and the European Commission.  

He added: “It’s extremely positive that the Taskforce has recognised our calls for mandatory price reporting in order to increase market transparency across the supply chain. The NFU has often raised the issue of the ‘black hole’ in market data on the processor-buyer end of the supply chain, which stifles trust, collaboration and the development of market risk management tools.

“The report highlights how this approach is working well in the United States, where price reporting is supported by the whole supply chain and is used by a range of industry stakeholders to support decision making.” Mr Raymond also said that the adoption of this model can potentially bring about a more cohesive approach in managing market risk in both the UK and the EU.