We are in favour of the proposed Horticulture Sector Regulation, as we strongly believe that the current GSCOP framework does not adequately address the range of issues we are facing. A key advantage of the proposed regulation is its ability to apply across the entire spectrum of purchasers, including packers, service providers, and marketing desks, not limited to the group of major retailers currently covered by GSCOP.
We acknowledge that non-programmed or non-contractual sales would need to be excluded from the scope of the regulation. However, we must stress the importance of careful wording in any exclusion clauses. Any opportunity to “opt out” of the regulation could create a loophole, enabling avoidance by parties it is intended to cover. For instance, service providers or retailers might seek to issue contracts specifically designed to fall outside the regulation’s remit.
The regulation should clearly state that contracts must include a pricing mechanism that allows for the recovery of known and proven increases in the cost of production. Furthermore, cost increases resulting from government policy or revised audit standards and customer requirements must be fully met when proven by the grower or supplier. This includes payment terms which should stipulate a maximum payment period of 28 days from the date of delivery.