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MARKET REQUIREMENTS
The UK is the most sophisticated food market in Europe and it is of paramount importance to the supermarkets that the requirements of this market are met. Suppliers to supermarkets have to meet ever-increasing environmental, social and food quality standards, and have to show compliance with these standards using the principles of 'due diligence and traceability'. These standards and legislation are non-negotiable market requirements and must be met by all suppliers to supermarkets, whether small or large.
There are three main incentives for companies to ensure acceptable social and environmental performance of their supply chains:
| 1. | Consumer safety: consumer concern about food safety due to recent unprecedented food scares has driven food safety standards to ever greater sophistication. |
| 2. | Reputation: companies manage their reputation just as they would any other asset. Consumers and investors trust and value a company's name. Damage to reputation can risk company investment in advertising and brand management, can lead to consumer boycotts and have a long-term influence on consumer behaviour. |
| 3. | Sustainability: companies are driven by the need to ensure sustainable supply and sustainable markets. They want to know that year in, year out they can rely on producers to supply high-quality produce without being threatened by environmental degradation or conflict. |
The supermarkets' need for good reputation and sustainability have consequences for small producers. Smallholders have an interest in making sure their 'customers' - the exporters that they supply, or hope to supply - prosper. Also they must ensure they can provide what the exporter wants now, and in the future.
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