The National Farmers' Union and pressure group Friends of the Earth have attacked the government's long-awaited code of practice for UK supermarkets, following its low-key publication at the end of October.

The NFU said the legally binding document – which formalises the relationship between the four major UK multiples and their suppliers – 'will leave farmers and growers bitter and angry' because initial concerns over aspects of the draft code had not been addressed, leaving retailers wide discretion when dealing with farmers.

Meanwhile, Friends of the Earth criticised the manner in which the code was published, claiming it had been 'sneaked out at short notice'. It added that the final version 'shows that moves to protect small suppliers and consumers from the damaging practices of large retailers have been significantly watered down, and offer little, if any, protection'.

But secretary of state for trade and industry Patricia Hewitt backed the code – which was recommended by a Competition Commission enquiry last year and taken up by the DTI in April.

'It will give suppliers greater certainty and security,' she said, 'by putting their contractual relations with supermarkets on a clearer and more predictable basis.' However, NFU president Ben Gill was unimpressed. 'The DTI has taken seven months to deliver no changes to the flawed and ambiguous original document', he said.

'It is a recipe for dispute which is precisely what we intended to avoid. To have this is bad enough, but to have had to wait seven months is an insult to an industry already under intolerable pressure.' The code applies to UK multiples with more than eight per cent of the retail grocery market - namely Asda, Safeway, Sainsbury and Tesco, and covers prices, payments, compensation, consumer complaints and third-party dealings. Under the code, retailers are now required to give 'reasonable notice' before asking for retrospective price cuts. It also bans payments for lower profits, wastage or promotions 'unless the basis of payment is agreed in advance'.

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