The government has published its long-awaited code of practice for supermarkets, which sets out how business should be conducted between supermarkets and their suppliers, such as manufacturers and farmers.

The mediation mechanism for disputes appears to be neither properly independent nor grounded in established arbitration mechanisms Phil Evans of the Consumers Association

The code follows a Competition Commission report - Supermarkets A report on the supply of groceries from multiple stores in the United Kingdom - published in October 2000.

The report recommended the introduction of a code, but farmers and consumer groups have said the one released on Wednesday by the Department of Trade and Industry (DTI) was too weak and ambiguous.

Ben Gill, president of the National Farmers' Union said: "As it stands at moment, the code will do little if nothing to reassure our members that it will give them any protection within their sector."

Little protection

The code applies only to those supermarkets with 8% or more of the market - Asda, Safeway Sainsbury and Tesco.

Under the complaints procedures, all breaches must first be raised with the supermarket.

If that fails, the supplier can then take the case to an independent mediator but the DTI said it would be up to the supermarket and supplier to decide who would mediate.

The Director General of Fair Trading will monitor the operation of the Code and investigate if the issue falls outside the mediation procedure.

Ambiguous

The Consumers' Association joined the growing chorus of disapproval against the new code on Thursday.

It said that the code enshrined "many of the practices that are most objectionable", was too "weak, extremely vague and loosely worded".

Consumers' Association Principal Policy Adviser Phil Evans said:"The mediation mechanism for disputes apears to be neither properly independent, nor grounded in established arbitration mechanisms."

The Competition Commission clearly identified practices of sufficient concern that it though it necessary to demand a Code of Practice to regulate them.

"As it stands, this Code does not appear to meet those needs."

The supermarkets will now have four weeks to raise their objections with the Director General of Fair Trading.