One in nine suppliers report unfair trading practices with retail and wholesalers

The Agri-Food Regulator has reported that 1 in 9 suppliers have reported experience of unfair trading with true total number unknown due to incidences likely being under reported. 
The Agri-Food regulator has reported 1 in 9 suppliers have experienced unfair trading practices in the last year.

The Agri-Food regulator has reported 1 in 9 suppliers have experienced unfair trading practices in the last year.

One in nine suppliers report unfair trading practises (UTP) when trading with eight buyers in the retail and wholesale sector in Ireland.

The Agri-Food Regulator surveyed eight specific retailers and wholesalers, gathering feedback from suppliers of agricultural and food products on Aldi Stores Ireland, BWG Foods, Dunnes Stores, Lidl Ireland, Marks and Spencer Ireland, Musgrave Group, Sysco Ireland and Tesco Ireland.

The Suppliers Survey covered two main areas, compliance and the Unfair Trading Regulations, among other trading issues. The survey provided feedback on 1,313 trading relationships, an increase of 40% over the 2025 survey.

Although there was a high overall level of supplier satisfaction with how buyers conduct their business, one in nine still report being subject to UTPs, a decrease from last year, when one in seven reported UTPs.

The Food Regulator cites fear of retaliation and loss of business as the leading reason for suppliers not to report a UTP experience.

Discussing the findings, CEO of the Agri-Food Regulator, Niamh Lenehan, said: “We need to ensure that all suppliers feel confident in raising a potential breach of the UT Regulations. Many suppliers expressed a fear of retaliation if they raised a complaint. As the Regulator, we still have much work to do in reassuring suppliers of the confidential complaints process, and their rights in their trading relationships.” 

The Agri-Food Regulator said that the number of UTPs experienced that were reported within the survey did not reflect the true number of complaints the regulator had received from suppliers, saying that these events are “likely under-reported”.

Speaking on the matter Head of Unfair Trading Practices Compliance and Enforcement at Agri-Food Regulator, Melanie Hall, said:

It is fair to say that the Irish experience of potential under-reporting of UTPs is reflected across the EU

and that the fear of retaliation from the buyer to supplier and lack of understanding of the next steps following a complaint with the regulator were factors inhibiting suppliers from reporting.

Tesco and Dunnes were the most commonly reported buyers reported for UTPs at 7% and 6%, respectively. There have also been significant declines in the proportion who reported having experienced a UTP in the last year, with Musgrave UTP reports experiencing a drop from 11% to 5%, Lidl from 9% to 4% and M&S from 9% to 5%.

The report found that 10% of suppliers experienced an ‘Unconditional UTP,’ which are 10 unfair practices that protect suppliers by law in all circumstances. The top unconditional UTP experience was the cancellation of orders of perishable products with less than 30 days’ notice.

Only 3% of suppliers reported ‘Conditional UTP,’ which are UTPs that are prohibited if not already pre-agreed in advance between buyer and supplier. The highest reported conditional UTP was the buyer requiring the supplier to bear all or part of the cost of any discounts on the supplier’s products that are sold as part of a promotion, which had not been agreed in advance.

Suppliers reported a reluctance to escalate matters and report UTP incidences to the Regulator, which is seen as a last resort, with suppliers preferring to resolve the issues directly due to relationship risk. Smaller suppliers also report feeling more exposed and at a greater financial risk with less leverage when a UTP arises with a buyer compared to larger suppliers with more finance and means to do so.

The survey reported 25% of respondents experiencing general trading issues with buyers, the most common issue, with 12% of suppliers reporting cost price increases, followed by delays or non-payments where there were delivery disputes, delisting without reasonable notice, and inadequate processes in place to resolve invoice discrepancies.

The survey also examined the wider issues facing agri-food suppliers in the coming year. Almost 1 in 4 (24%) noted pricing strategies and cost management as a key concern, with pricing pressures (15%) and market volatility (14%) ranking as leading concerns.

x

More in this section

Farming

Newsletter

Stay ahead of the season. Sign up for insights, expert advice and stories shaping Irish agriculture.

Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited