Minister for Agriculture, Fisheries & Food Brendan Smith has welcomed the European Commission's call for a better functioning food supply chain in Europe.
Mr Smith said it is important that markets function well and that unfair practices are prevented.
He said it goes without saying that there must be fair play in trading conditions, including at retail level.
Speaking at the Council of Agriculture Ministers meeting in Brussels, Mr Smith said the Government is committed to implement a National Code of Practice for doing business in the grocery goods sector in order to develop a fair trading relationship between retailers and their suppliers.
Mr Smith said that following the recent public consultation, a code of practice will be drafted, initially on a voluntary basis, and the code will then be put on a statutory footing.
