The Food and drink sector has called for the implementation of a 'proactive approach' to fair trading, as food prices continue to fall, decreasing by 2.5% in the year to March, according to the latest Food Drink Ireland (FDI) business monitor.
This comes one year after the introduction of the Grocery Goods Regulations.
Paul Kelly, director, FDI stated: “Unfair practices faced by food suppliers that impact their costs are not only bad for business and individual suppliers, but ultimately they are also bad for consumers. The new Grocery Goods Regulations, which came into effect one year ago, aimed to address these issues and the unfair demands being put on suppliers.These include a failure to respect contractual terms, de-listing threats and off-invoice deductions without sound business reasons."
Other key trends from the FDI business monitor showed that retail sales are increasing but value is lagging volume growth.
“Suppliers need to have certainty in respect of the risks and costs of trading, a key principle enshrined in the legislation that established the Grocery Goods Regulations. Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers."Kelly added.
On a more positive note, it highlighted that when it comes to Irish monthly food trade, the slight strengthening of sterling had a positive impact on food exports to the UK which increase by over 4% in both January and February compared with the same months in 2016.
© 2017 - Checkout Magazine by Donna Ahern