1-in-7 agri-food suppliers report unfair trading practices
One-in-seven agri-food suppliers have reported being subject to unfair trading practices (UTPs) according to a survey carried out for An Rialálaí Agraibhia (Agri-Food Regulator).
The regulator has released the findings of its first supplier survey which gathered feedback from agri-food suppliers on their experiences of trading with eight specific buyers in the retail and wholesale sectors.
Conducted by Coyne Research, the Agri-Food Regulator's Suppliers Survey covered two main areas: compliance with the UTP regulations; and other general trading issues.
The survey provided feedback on over 940 trading relationships. The results of the survey form the basis of the inaugural conference of the Agri-Food Regulator, which is being held today (Tuesday, May 20).
The regulator said that results indicate an overall high level of supplier satisfaction with how buyers conduct their business.
While a 'high level of compliance' with the UTP regulations was also noted, the survey found that one-in-seven respondents still report being subject to an unfair trading practice.
The two most common issues faced being faced by respondents were being required to pay for loss or deterioration of a product, and delayed payments.
Lack of awareness on rights, and the wish to maintain long-term relationships, where cited ad the key reasons for suppliers not raising issued with buyers.
Furthermore, less than half the respondents were aware that the regulator's compliant procedure is confidential.
The year ahead for agri-food suppliers
70% of suppliers said that cost increases and inflation were the biggest concern for the year ahead.
Commenting on these results, CEO of the Agri-Food Regulator, Niamh Lenehan said: 'I'm pleased to release the findings from what we intend to be an annual suppliers survey.
'We are grateful to those 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.
'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,' she said.
Lenehan did admit that she is concerned that 14% of respondents reported experiences that they characterised as unfair trading practices.
She said it was concerning that some suppliers reported that they may not raise a potential breach of the regulations with either the buyers or the regulator.
'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 the role of the regulator,' Lenehan said.
The conference taking place today will also examine 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 for primary producers.
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