A recent survey conducted by the Agri-Food Regulator in Ireland has unveiled a concerning reality: 14% of agri-food suppliers report experiencing unfair trading practices. This finding represents a significant portion of the sector, highlighting persistent issues such as delayed payments and unjust financial liabilities for goods lost or damaged beyond a supplier’s control. While the majority of supplier-buyer relationships appear satisfactory overall, the existence of these unfair practices indicates a troubling undercurrent within the industry.
Awareness around these unfair trading practices has reportedly improved since the introduction of the Unfair Trading Practices (UTP) Regulations, which aim to protect suppliers in their commercial dealings. Minister for Agriculture, Food and the Marine, Charlie McConalogue, recently remarked that although there is a growing understanding of the protections available, a notable number of suppliers still find themselves victims of unfair conduct. This reflects a deeper issue whereby fear of commercial retaliation, including potential delisting, silences many suppliers from reporting their grievances to the appropriate authorities.
Despite progress, the survey suggests that only 30% of those aware of the Agri-Food Regulator express confidence in its ability to safeguard them from unfair practices. With 54% of respondents understanding the regulator’s role, the gap between awareness and action signals an urgent need for the regulator to foster a more supportive environment for supplier complaints. The ongoing hesitance to report unfair practices underscores a culture where suppliers feel vulnerable, questioning the efficacy of existing protections.
Besides the direct impact of unfair trading on individual suppliers, there are broader economic implications at play. A staggering 70% of suppliers have identified escalating operating costs as their primary concern, driven by rising input prices and labour costs—a situation that generates additional strain as these suppliers navigate the unfair practices they face. While the regulator continues to advocate for increased awareness of the EU’s unfair trading directive, the lack of authority to compel market data disclosures is a significant obstacle in achieving transparency and fairness within the supply chain.
The Agri-Food Regulator, established in late 2023 to address these pressing issues, reflects a governmental commitment to enhancing fairness and transparency in the agri-food sector. However, its effectiveness remains constrained by unresolved requests for additional enforcement powers. As discussions with the Department of Agriculture linger without resolution, the regulator’s capacity to protect suppliers effectively is hampered, casting a shadow over the future of equitable trading in Ireland’s food supply chain.
In an effort to garner further insights, the Agri-Food Regulator has launched a survey inviting feedback from suppliers regarding their trading experiences over the last year. The findings of this survey are expected to be released at the regulator’s inaugural conference, signalling a step forward in acknowledging the lived experiences of suppliers and hopefully paving the way for meaningful reforms.
Overall, while there has been some improvement in awareness and understanding of the regulations protecting suppliers, the dual challenges of reporting hesitance and rising operational costs continue to undermine the stability and fairness of the agri-food market. The necessity for bold action from both regulators and suppliers is clearer than ever, as the pursuit of fairness in trading practices remains an ongoing challenge for the industry.
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Source: Noah Wire Services
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