One in seven respondents to an Agri-Food Regulator survey on the unfair trading practices (UTP) regulations reported to have been subjected to breaches of agri-food supply chain rules.

The regulator conducted a survey capturing agri-food suppliers’ views on 940 trading relationships and while 14% reported to have had experienced a breach in UTP rules, there were overall “high levels of compliance” reported.

The UTPs were introduced at EU level in 2022 in a bid to increase fairness in the agri-food supply chain.

The rules ban practices including payment later than 30 days for perishable agri-food products, short-notice cancellation of perishable agri-food products, unilateral contract changes by the buyer and a buyer’s refusal to provide written agreement of a supply agreement.

The most commonly reported breaches in the survey were the supplier being made to pay for loss or product deterioration and delayed payments.

Aldi Ireland, wholesaler BWG Foods, Lidl Ireland, Marks & Spencer Ireland, Musgrave Group and Tesco Ireland co-operated with the regulator by distributing the survey to their suppliers.

Full compliance needed

Agri-Food Regulator CEO Niamh Lenehan stated that the survey’s results show a high overall level of supplier satisfaction with how buyers conduct their business.

Lenehan said this willingness to engage ensured the survey “gave a voice to their suppliers”, while the findings enable a “better understanding of the current operating landscape”.

She stated that the information received through the survey will feed into guidelines for buyers and future risk-based inspections.

“There is a lot to be positive about regarding the survey findings and I note that a majority of the respondent suppliers expressed satisfaction with how buyers conduct their business,” the CEO said.

“However, I am concerned that 14% of respondents reported experiences that they characterised as unfair trading practices.

“As the regulator, we need to ensure full compliance with the regulations in place.”

Some suppliers reported that they would not raise a suspected breach of the UTP rules with the regulator or the business the supply due to a fear of retaliation or the risk of damaging their trading relationship.

“With less than half of the respondents aware that the regulator operates a confidential complaint process, we acknowledge that we have a significant amount of work to do in creating greater understanding and awareness of unfair trading practices and of the role of the regulator.”