Code kept warm

Food manufacturers and retailers seem to have finally reached an agreement about a Code of Ethics. Their objective has been to set a universal standard for market players to be followed on a voluntary basis, which promotes co-operation within the sector and helps to maintain consumers’ trust. By defining rules for acceptable conduct and the management of b2b relations, the Code is intended to orient market players. Elements of relevant legislation are not recited in the Code, and no sanctions are defined, as sanctioning is the competence of government authorities. By the middle of February, all we can be certain of is that further work is needed in order for the representatives of farmers, processing enterprises, retailers and the government to be able to sign the document. However, if market players fail to accept such a code of ethics on a voluntary basis, the government will be ready to work out regulations for the issues which are to be subject to the code. The idea of such a code adopted voluntarily is unique in the EU, though according to the National Retail Association, this is the harder way regulate relations in the sector. (Legislation serving this purpose exists in Slovakia and Romania). One thing the parties agreed on in February is that 80 percent of the products sold by retailers will be of Hungarian origin by no later than 30. June. The one important issue which still needs to be agreed on is the question of rebates. In the opinion of analysts, more is expected of the code than it will actually deliver.