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Breaking the armlock

Posted: Wed Jul 19, 2006 10:21 pm
by Shirley

Breaking the Armlock is an alliance of 16 farming, consumer, development and environmental organisations calling for stricter controls over the major supermarkets' trading practices, particularly to stop them passing on unreasonable costs and demands to farmers and growers in the UK and overseas.

The alliance, which includes Banana Link, British Independent Fruit Growers Association, farm, Farmers for Action, Farmers' Link, Farmers' Union of Wales, Friends of the Earth, Grassroots Action on Food and Farming, International Institute for Environment and Development, National Federation of Women's Institutes, National Sheep Association, New Economics Foundation, Pesticide Action Network UK, Soil Association, Small and Family Farms Alliance and WyeCycle, launched its campaign at a Parliamentary Briefing, hosted by Andrew George MP on the 16th March 2004.

In 2000, a Competition Commission report acknowledged that the biggest supermarkets were bullying their suppliers. Recent mergers and buy-outs have tipped the power balance even further in favour of the retail giants. The Alliance, believes that supermarket power should be regulated by an independent watchdog, supported by a tougher Supermarket Code of Practice that would be imposed on supermarkets.

Despite many reviews that proved the existing Code of Practice is not working the Office of Fair Trading (OFT) has failed to take action. However, in May 2006 the OFT announced that it will refer the supply of groceries by retailers in the UK to the Competition Commission (CC) for a market investigation: 'The grocery market - The OFT's reasons for making a reference to the Competition Commission .In its report the OFT recognised that there are issues concerning buyer power and the Code that the CC should address

Posted: Sun Jul 23, 2006 10:35 am
by hedgewizard
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