After years of lobbying by farmers, the new Grocery Goods Regulations come into force from next week, 30 April. They do not include what farmers want most – a ban on below-cost selling. But they do include better trade terms for farmers dealing with big wholesalers and retailers, such as written contracts and payment within 30 days. The regulations include:
After years of lobbying by farmers, the new Grocery Goods Regulations come into force from next week, 30 April. They do not include what farmers want most – a ban on below-cost selling. But they do include better trade terms for farmers dealing with big wholesalers and retailers, such as written contracts and payment within 30 days.
The regulations include:
Contracts must be in writing and cannot be changed/terminated without consent of both parties. Growers cannot be forced to obtain goods/services from a third party who would pay the retailer/wholesaler for this arrangement. Suppliers cannot be required to pay hello money.Suppliers paid within 30 days. Retailers/wholesalers must designate and train staff to provide compliance.Retailers/wholesalers must submit an annual compliance statement.The Competition and Consumer Protection Commission (CCPC) can impose fines of up to €100,000 or two years in prison. A supplier can sue a retailer/wholesaler for damages.A number of fruit and veg growers claimed to the Irish Farmers Journal that big buyers are showing no signs yet of engaging with the rules.
Requirements under the regulations will take effect gradually. Existing 12-month contracts will operate until expiry. First compliance reports need not be submitted until the regulations are operating 12 months, ie in March 2017.
The IFA recently met with the CCPC to discuss how that body would enforce the regulations.
“I stressed to the CCPC the importance of their role in monitoring the compliance of retailers and wholesalers with the legislation,” national chair Jer Bergin said. “The regulations will have to lead to a fundamental change by retailers and wholesalers when it comes to paying their suppliers promptly.”
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