In particular, the report supports the NFU’s view that the lack of effectiveness is due to a fear of recrimination should suppliers make complaints.

The report also accepts the concept of “reasonableness“ and the presence of a fundamental imbalance in negotiating strength between the supermarkets and most of their suppliers.

The NFU is pleased that the OFT has recognised the need to fully investigate incidences of alleged malpractice and will be undertaking an audit of the supermarkets, very much along the lines of the NFU’s original recommendations.

Unfortunately the report failed to consider an extension of the code to cover other sectors such as food service but the NFU believes this must remain a priority.

NFU Head of Food and Farming Robin Tapper said: “This will be an important first step in improving transparency in the supply chain between producers and the major retailers.

“We are pleased that the OFT has taken so many of our recommendations on board and we will be working to ensure that the impetus is not lost and that farmers and growers receive the fair treatment they deserve.“

Source: National Farmers Union - 20th February 2004