Grocery goods regulations to come into force in April

Grocery code regulations were signed into law this week by Mininster for Jobs Richard Bruton.

The new regulations have been met with some scepticism due to the delays in implementation and amid questions around how the regulations will be effectively and efficiently enforced.

The new regulations will help address the imbalance in the relationship between major grocery retailers and suppliers. Only last week the problem was highlighted by the UK Groceries Code Adjudicator and the European Commission.

Despite the original regulations being drafted more than a year ago, they will not come into effect until 30 April. This has angered food and drink suppliers as now is the period when the majority of contracts are due for renewal.

The minister said the extra time is to allow retailers adjust their practices and procedures to comply with the new regulations.

Damien Carolan, former trading director with Superquinn for 39 years, has been advising the Government on the regulations over the past number of months.

The regulations will be enforced by the Competition and Consumer Protection Commission (CCPC) and noncompliance will be punishable by fines ranging from €6,000 to €100,000 and up to two years in prison.

Suppliers will also have an option to sue retailers and wholesalers for damages if they abuse their position in the food chain.

The Irish Farmers Journal understands that retailers have been ramping up the pressure on suppliers in recent months with the full knowledge that these regulations were coming down the line. This is causing further pressure on already squeezed food producers.

The IFA said the effectiveness of the regulations will depend on robust monitoring and oversight by the CCPC.