Farmers have been generally underwhelmed by the Unfair Trading Practices (UTP) legislation introduced last year and now coming into effect. The decision by Government to set up an Office for Fairness and Transparency (OFT) instead of the appointment of an ombudsman to enforce the legislation has further eroded confidence. This has only been added to by the fact that the legislation required to establish the office is still in gestation – suggesting to farmers that this isn’t a particularly high priority in Government circles.

While we await the necessary legislation, an interim enforcement authority is in place to ensure UTP rules are being adhered to.

This authority recently told the Irish Farmers Journal that it has received just six complaints, of which four fell “outside of the scope” of the regulations. The remaining two are under adjudication to see if they fall within the scope of the authority to investigate. A perceived “fear factor” was identified as dissuading farmers and food processors from coming forward with complaints.

Interim authority

If the interim authority and subsequently the OFT thinks that they can do a satisfactory job by simply publicising the facility for farmers to make complaints and reacting to them, then they are destined to fail before they start.

To have any hope of making a meaningful contribution to addressing the imbalances in the supply chain, which the UTP is designed to do, the OFT, and in the meantime, the enforcement authority, have to be proactive in initiating investigations instead of just reacting to complaints.

One area that clearly requires immediate investigation is the supply relationship between the small number of remaining vegetable growers and their supermarket customers.

In recent weeks, the team in the Irish Farmers Journal has engaged with the horticulture sector in a bid to understand the challenges they face. From these conversations, it is evident just how brow-beaten these farmers are and, in particular, how afraid they are to challenge and speak out against the powerful supermarket buyers.

The IFA has struggled to fill the chair of the horticulture committee. / Claire Nash

Farmer anxiety

The concern over a possible threat of retaliatory de-listing is very real. There is no doubt that anxiety among these farmers at doing anything that could rock the boat is particularly heightened at present ahead of the main harvest season.

The fact that the IFA, an organisation where offices are hotly contested, has struggled to fill the chair of the horticulture committee further suggests growers want to avoid drawing attention to themselves. This is despite many having faced real economic hardship for a number of years.

We are all familiar with supermarkets using Brussels sprouts at Christmas as a headline-grabbing loss-leader but the reality is that achieving viable prices is a year-round problem for growers. But rather than highlight the problem, farmers are voting with their feet by simply exiting the sector – with the area planted to fruit and vegetables down 12% over the past year.

Investigation required

In this environment, there is no point in waiting for the OFT to be set up or for farmer growers to come forward with a complaint to the interim authority. Instead, the interim enforcement authority needs to be proactive and initiate an investigation in line with the powers conferred by the UTP. Such an investigation should encompass all aspects of the trading relationship between vegetable and fruit growers and their supermarket customers. This should include, but not be limited to, below-cost selling and look at the entire structure of this unbalanced relationship where growers live in continual fear of being de-listed or having their orders reduced.

This piece of work is not just essential for the future survival of beleaguered vegetable and fruit growers. It is an important test as to how robustly the UTP legislation will be enforced, initially by the enforcement authority and, when in place, by the OFT. The success in dealing with the immediate issue facing vegetable growers will demonstrate to all farmers the true commitment to redressing the imbalance in the supply chain. If the enforcement authority fails to jump this hurdle, then it signals that the OFT will become another pointless quango when it is finally established.