A report produced for the Norwegian government has found a “strong change” in the power that retailers have over their suppliers – and the country’s ministers are now seeking legislation to “ensure fairness in negotiations and good trade practices”.
The Food Chain Committee, which published the “Food, power and powerlessness” report on Wednesday (13 April) are also calling for an ombudsman to enforce the law, as well as better food labelling and new rules on franchises.
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The report found that the largest suppliers are able to determine their terms but other suppliers, including primary producers, have “little influence and insight” into their terms. It also found that that further developments favouring retailers will result in a power imbalance in the food value chain, which will be detrimental to healthy competition.
The four largest umbrella groups in Norway – NorgesGruppen, Reitan Gruppen, Coop Norge and ICA Norway, the latter majority-owned by Ahold – account for 96.3% of the country’s grocery market, the report said.
The report claimed to have “uncovered factors it believes may be characterised as unreasonable business practices” that may have consequences for consumers in terms of selection and prices but, it argued, are also significant for the “development of the entire food value chain”.
“The Food Chain Committee identifies important challenges relating to power relationships, transparency and information on market mechanisms and products. I would like Norwegian consumers to have a broader selection and greater diversity in stores in the future,” said minister for children, equality, and social inclusion Audun Lysbakken.
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By GlobalDataThe report is now being presented for consultation with the relevant groups and authorities.
