Following comments made by EU Agriculture Commissioner Phil Hogan at the EXPO 2015 in Milan this week on inequality in the food chain, Irish Farmers Association (IFA) President Eddie Downey said there should be legislation in place to address this.

At the event in Milan, Hogan acknowledged that most of the farming organisations are currently outside of the voluntary Supply Chain Initiative, a joint initiative launched by seven EU level associations with the aim to increase fairness in commercial relations along the food supply chain. However, he hoped that a robust self-regulatory initiative could be agreed to eradicate unfair trading practices.

Downey said, “We welcome the regulation that some Member States, including Ireland, have put in place to address unfair trading practices in the food chain. However, we feel that this is a fragmented approach. We support the coexistence of a legislative and voluntary framework and hope the Commission can lead with legislation at European Union level”.

Commissioner Hogan indicated that the Commission will issue a report in the first half of 2016 on unfair trading practices and is working together with Commissioner of Internal Markets Elzbieta Bienkowska in developing this document.

FAQs on Supply Chain Initiative

What is it?

The purpose of The Supply Chain Initiative is to promote fair business practices in the food supply chain as a basis for commercial dealings. It aims to generate a culture change through a commitment of signatories to fair trading practices coupled with measures aimed at integrating those principles into company day-to-day operations and to control their application.

The Initiative also aims to ensure that companies address disputes in a fair and transparent manner whilst reassuring the complainants that they will not suffer from retaliation.

Who is behind the Initiative?

The organisations that have signed up to the framework are: the European brands association AIM, the European Liaison Committee for Agricultural and Agri-Food Trade CELCAA, the European Retail Round Table ERRT, EuroCommerce, Euro Coop, FoodDrinkEurope and Independent Retail Europe.

Who is responsible for managing the initiative?

The Governance Group is responsible for managing the Initiative. The Governance Group came into being on 1 April 2013, as a result of an agreement by the Signatory Organisations to endorse and implement the Principles and the Framework. Its composition reflects the different interests in the food supply chain. The list of governance group members is available here.

What is the geographical and transactions scope?

Registration is open to any company in the food & drink supply chain operating in the European Union (EU): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom. If a company operates in the EU and in non-EU countries, it may register for those national markets located in the EU. Only companies can register. Trade associations cannot.

What does it cost to register and to participate?

There is no annual or initial registration fee. Each company carries the cost of implementing the commitments set down by the Initiative but the stakeholder associations provide, for example, tools to help with self-assessment and training, that will make it cost effective for registered companies to sign up. These tools are available here.