Brussels to tighten terms of payment in foods sector to help suppliers

Photo: DutchNews.nl

Supermarket groups in the EU will be forced to pay their suppliers of agricultural products faster than they do now under plans to be presented in Brussels on Thursday, Dutch paper the Financieele Dagblad reported on Wednesday.

The measure is contained in a concept proposal drawn up by agriculture commissioner Phil Hogan, the paper said, and comes in response to complaints from farmers and other foods suppliers. They claim supermarkets are misusing their buying power and delaying payments deliberately.

On Tuesday, the FD published research showing that Dutch supermarkets are now paying their suppliers between two and four times more slowly than they did seven years ago.

The FD investigation revealed that Jumbo paid its suppliers an average of 32 days after being billed in 2011 but thatthe payment date has shot up to an average of 75 days at present.

Hogan is urging national sector watchdogs, like the ACM in the Netherlands, to attack unfair practices and impose fines upon offenders.He also wants to reinstate the 30-day payments deadline. The current EU standard has been widened to 60 days unless previous arrangements have been made.

In addition, Hogan’s proposal states that buyers cannot cancel perishable purchases at the last minute, nor can the purchaser force suppliers to participate in a sales drive. He also backs the right to complain anonymously. Suppliers now are reluctant to register a complaint for fear of losing business, the FD said.

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