Fair food chain needs regulator with teeth - Lyon

12.00.00am GMT Fri 5th Mar 2010

George Lyon, Liberal Democrat MEP for Scotland, has called for the establishment of a supermarket regulator that can root out bad practices in the food chain.

Mr Lyon was hosting a debate between representatives of NFU Scotland, ASDA and Graham's Family Dairy at the Scottish Liberal Democrat Conference in Perth.

The debate entitled "Fairness in the food chain" focused on how to foster a sustainable relationship between farmers, consumers and supermarkets.

Commenting, Mr Lyon said:

"We need a supermarket regulator with teeth, one that is proactive in rooting out bad practice.

"As it stands, the food market is unfair to both farmers and consumers. Liberal Democrats have long fought a more sustainable supply chain founded on a set of fair and transparent principles.

"We need legally enforceable rules to govern the relationships between supermarkets, suppliers and consumers.

"Liberal Democrats will introduce a legally binding Supermarket Code of practice along with an Independent Food Market Regulator to ensure a fair price for both farmers and consumers."

NFUS President Jim McLaren added:

"I welcome the opportunity to be involved in this discussion as the issue of fairness in the supply chain has been an NFUS priority for many years.

"I hope that a retailer ombudsman can successfully police the enhanced Grocery Supply Chain Code of Practice resulting in fairer returns for everybody. The ombudsman should also be able to work in a proactive rather than reactive fashion.

"Historically UK ombudsmen have protected consumers and farmers believe that it is in the best interests of consumers to have a readily available supply of good quality, locally produced food."

Commenting after the debate Dr Robert Graham, Chairman of Graham's Family Dairy said:

"Dairy farmers have got to be well supported. They are not industrial businesses; they are on the whole family run enterprises.

"Without continued support dairy farmers will cease to exist in Scotland. Processors and retailers must come to a sustainable agreement that will see dairy farmers go from strength to strength."

Chris Brown, Head of Ethical and Sustainable Sourcing at ASDA said:

"It was gratifying to see so many people attend the event keen to learn about the food chain we experience on a day to day basis.

"The schizophrenic nature of how supermarkets are seen was clear to see. In order to move the debate on it must be recognised that supermarkets have a role to play. It is about getting the balance right."