According to Isabel García Tejerina, the Code of Good Mercantile Practices represents a decisive step in improving the efficiency of the Spanish agri-food sector

On Tuesday, 10 January, Isabel García Tejerina chaired an event for companies to sign up to the Code of Good Mercantile Practices in Food Procurement, a self-regulation system that establishes the general commitments to be assumed by operators in commercial contracts and agreements.

In her speech, Isabel García Tejerina highlighted the efforts made by the ministerial department and the associations that represent farmers, cooperatives, industries and food distributors to draw up this code, which 78 entities have signed up to, while several others are in the process of doing so. In particular, the minister acknowledged the decision to voluntarily sign up to a code and the work necessary in its implementation.

Basic principles

According to Isabel García Tejerina, the Code of Good Mercantile Practices establishes a series of basic principles in trade relations, such as balance and fairness between parties, the freedom to contract, good faith, shared distribution of risks and responsibilities, cooperation and transparency, as well as respect for free competition and the sustainability of the food chain.

These principles, pointed out the minister, "are the necessary pillars to ensure that the food chain achieves a greater balance between the different links, and they contribute to giving us a strong sector that is increasingly competitive".

In addition to the general commitments, the code covers practices on such key issues as negotiation, management, innovation and information. It also includes additional commitments related to guaranteeing the quality of products, reducing food waste and strengthening cooperation when faced with market crisis situations.

Within this framework, the minister specified that a provision to resolve conflicts is also established, obliging member companies to design an internal procedure for their resolution.

Food Chain Act

She stressed that these changes require work, commitment and different practices to those we have had for a very considerable time. The minister pointed out that these changes were announced in the Law on Measures to Improve the Functioning of the Food Chain, which is pioneering legislation in Europe that serves as an example for actions by the EU and other countries.

In this regard, the minister indicated that the aforesaid law has defined a model that has proven to be effective, firstly, through the creation of the Food Information and Control Agency (Spanish acronym: AICA), which assists and oversees compliance with the law, and, secondly, through the Code of Good Mercantile Practices.

Isabel Garcia Tejerina, who stressed the hard work carried out in drawing up the code, highly valued the efforts made by operators who received formal recognition for having signed up: large producer organisations, SMEs and large industries, federations of retailers, the Spanish Confederation for Trade and organised distribution.

Success of the agri-food sector

For the minister, all of these entities have taken part and helped drive the success of the Spanish agri-food sector, a sector that creates wealth in all links of the chain. Specifically, the Laws on the Food Chain and on Cooperative Integration, the Strategic Lines of Internationalisation and many other initiatives have contributed to creating a climate of confidence and security that have enabled the sector to increase its market share and offer figures that are markedly positive.

Against this backdrop, the minister referred to the increase in agricultural revenue, which in 2016 amounted to the sum of 25.26 billion euros, a 5.1% rise on 2015. She also commented that the figures for the industry are highly positive, with total turnover in 2015 of 95 billion euros (1.6% up on the previous year), and the creation of 10,000 jobs.

Isabel García Tejerina also highlighted that Spain is on the verge of exceeding the figure of 46 billion euros in exports over the last year, and that a surplus of more than 11 billion euros will be posted for the first time ever. At present, the agri-food sector as a whole contributes more than 10% to Spanish GDP, and provides work for more than 2.5 million people. For Isabel García Tejerina, this would not have been achieved without an interest in dialogue, a capacity for work and the responsibility of the sector. "The Spanish agri-food sector is now stronger, more balanced and, consequently, more competitive than ever before", she added.

To end, the minister urged all companies and associations to sign up to this code in the conviction that this will make a great contribution to creating wealth and providing economic, social and environmental sustainability.