The survey results were revealed at an inaugural conference taking place today (May 20) to discuss progress to greater fairness and transparency for primary producers and small businesses. Conducted by Coyne Research, the survey covered two main areas – compliance with the unfair trading (UT) regulations and other general trading issues. The survey, which provided feedback on over 940 trading relationships, found:
- A high overall level of supplier satisfaction with how buyers conduct their business;
- High levels of compliance with the UT regulations, but one in seven respondents still report being subject to an unfair trading practice;
- Requiring the supplier to pay for loss or product deterioration and delayed payments were the two most common issues faced by respondents;
- Lack of awareness on rights and the wish to maintain long-term relationships were the key reasons for suppliers in not raising issues with buyers; and
- Cost increases and inflation raised as the biggest concern facing suppliers in the year ahead (70 per cent).
Speaking at the conference, which brought together key stakeholders from the agri-food landscape to discuss the current circumstances for businesses in the agri-food supply chain, Niamh Lenehan, CEO, Agri-Food Regulator said she was grateful to the six businesses who cooperated with the regulator to distribute the survey to their agri-food suppliers – Aldi Ireland, BWG Foods, Lidl Ireland, Marks and Spencer Ireland, Musgrave Group and Tesco Ireland.
“Their willingness to engage ensured that this survey gave a voice to their suppliers and the findings allow the regulator and the businesses themselves to get a better understanding of the current operating landscape – capturing both the positives and the challenges.”
She continued: “I very much welcome these survey findings which will be used to inform our work programme for the year ahead. This will include using the information received to progress the development of guidelines for buyers and the conducting of further risk-based inspections with respect to compliance with unfair trading law.
“There is a lot to be positive about regarding the survey findings and I note that a majority of the respondent suppliers expressed satisfaction with how buyers conduct their business. However, I am concerned that 14 per cent of respondents reported experiences that they characterised as unfair trading practices. As the regulator, we need to ensure full compliance with the regulations in place.” She added that it was concerning that some suppliers reported that they may not raise a potential breach of UT regulations with either their buyer or with the regulator itself. She said: “Fear of retaliation and potential damage to trading relationships are clear concerns expressed and which then potentially impact negatively on the efficient functioning of the supply chain.
“With less than half of the respondents aware that the regulator operates a confidential complaint process, we acknowledge that we have a significant amount of work to do in creating greater understanding and awareness of unfair trading practices and of the role of the regulator.”
The conference also examined wider aspects of the agri-food landscape including the biggest challenges facing suppliers in the year ahead, and the progress being made at national and EU level towards greater transparency and fairness for primary producers following the recent publication of the EU Commission’s Vision for Agriculture and Food. Guest speakers included Michael Healy-Rae, Minister of State at the Department of Agriculture, Food and the Marine; Patricia Reilly, cabinet of President Ursula von der Leyen at the European Commission; and Mark White, Groceries Code Adjudicator, UK.