FGC on Supermarket Code of Conduct

FGC on Supermarket Code of Conduct

The United Kingdom’s Grocery Supply Code of Practice, which sets out how supermarket retailers and suppliers conduct their business, could have application in New Zealand if the initiative proves to be a success, says New Zealand Food and Grocery Council (FGC) Chief Executive, Katherine Rich.

Mrs Rich says that the Code has been in place since February 2010 and will take time to settle in.

“We are interested to see whether such an initiative makes a positive difference before formally endorsing the concept for New Zealand as there are significant differences between the British and New Zealand markets.”

“While we have not read the detail of Sue Kedgley’s grower survey, her comments over the weekend that New Zealand might benefit from a UK-style Ombudsman and Grocery Code of Practice, are worth further investigation and consideration.”

Mrs Rich says that the fact that this idea has been raised by the Green Party is no reason for Ministers to dismiss the idea without consideration. In the United Kingdom the concept was backed by both the Tory and Labour Parties and has wide political support.

“However, there are some differences in our markets. On the whole retailer/supplier relationships in New Zealand are very good and far more positive than in the UK. This reflects our country’s small size, and the fact that long term business relationships are seen as being very important by senior leaders within the grocery sector.”

“We’d stress that the executive teams of both supermarkets work extremely hard to cultivate good supplier relations. However, there will always be individual cases where a clear Code might provide useful guidance.”

“If the Minister of Commerce or Minister of Consumers Affairs decided to champion such an initiative, the Ministry of Economic Development has experience in developing a number of other industry codes and shouldn’t find the task too burdensome.” Mrs Rich said.



ENDS

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