Ms Christine Tacon:

The fact that things need to be in writing comes under the order which is overseen by the Competition and Markets Authority. I asked them about it and told them that I was getting lots of queries as to what should be in a supply agreement. It looked into it and did not come up with anything constructive.

To reiterate my point, I am particularly worried about primary producers signing up to things in supply agreements that could cost them a fortune. Some of the very large businesses talk about the so-called battle of the forms. A very big multinational will send its supply agreement to the retailer and the retailer will send its supply agreement back to the multinational and they never get to a final agreement because neither party is prepared to sign up for it. Some of the retailers' supply agreements contain terms like a £40,000 charge for an emergency product withdrawal. The supplier does not want to pay £40,000 so he or she does not agree to that but the retailer says that he or she must agree. The supplier says that he or she is not going to agree, such that when it ever happens, he or she can say that it is something that was never agreed. Trying to get everything written down on paper with two signatures on the end is naive, especially as an email sent by the buyer the next day can amend it. I am trying to make clear to the retailers that they need to keep track of everything that is potentially varying in the supply agreement.