The CLA has called for a strengthened code of practice to protect the interests of suppliers and improve the relationship between supermarkets and their suppliers.
The move follows yesterday’s announcement of the Competition Commission’s consultation on its groceries code of practice order.
CLA Deputy President William Worsley said: "At a time when prices are falling and suppliers are being squeezed as supermarkets seek to maintain margins, it is vital for the Competition Commission to stand firm and support producers and suppliers.
"We all know what happens when markets are regulated with too much of a light touch - the crisis enveloping the banking sector visibly highlights this point. The food supply chain is vital to the health of the UK economy and so all those involved deserve protection from practices that are detrimental."
The CLA Deputy President added: "It is in everybody’s interests to ensure the food supply chain works efficiently for the retailer, the supplier, the producer and, ultimately, the consumer.
"A strengthened code, together with the creation of an Independent Ombudsman, is the first step in ensuring equality for all. This is a once-in-a-lifetime opportunity - failing to grasp it could lead to more small businesses, which are, after all, the lifeblood of the economy, going under in these uncertain times."
