Grocery goods regulations signed into law welcomed- Doyle

“I am very pleased, particularly taking into account the diligent work the Agricultural Committee carried out on publishing a number of key recommendations in the grocery sector on ‘Increasing equity and transparency in producer-processor-retailer relationships’.  

“The regulations signed into law are aimed at rebalancing relationships between different players in the grocery goods sector, and ensuring that dealings in the sector are fair and sustainable and operate in the interests of jobs, consumers and sustainable safe food.

Areas covered by the regulations, which cover food and drink products, are:

·             Grocery goods contracts will be required to be in writing

·           Contracts cannot be varied or terminated except with express consent of both parties

·         Suppliers cannot be obliged to obtain goods/services from a third party from whom a retailer/wholesaler receives payment for this arrangement

·               Provisions to deal with ‘force majeure’, non-performance due to circumstances beyond the parties’ reasonable control

·               Suppliers can require retailer/wholesaler to provide forecast of the goods that will be needed

·               Prohibition on suppliers being required to pay for stocking/listing goods; for promotion; for marketing costs; for better positioning on shelves; for advertising; for wastage; for shrinkage €“ except in strictly specified circumstances, based on free agreement between the parties, based on written contract, and based on an objectivement measurement of costs born by the retailer/wholesaler

·               Suppliers must be paid for goods within 30 days

·               Measures to ensure compliance by retailers/wholesalers, including €“ requirement that staff be designated and trained as responsible for compliance; requirement for retailers/wholesalers to submit an annual compliance statement; requirement for records to be retained by each retailer/wholesaler

These regulations deliver on an important commitment in the Programme for Government and will enter into force on 30 April 2016 to allow retailers and wholesalers enough time to ensure that their systems and procedures are in order to allow them abide by the regulations.

“It is very important to point out that relationships will continue to be based on commerce and prices will continue to be set by hard negotiations €“ this is in the interests of consumers. The measures outlined together with strong enforcement powers will ensure that these relationships are fair and sustainable.”