I have been contacted by constituents about Fairness in Farming.
As the Member of Parliament for Milton Keynes South, I have included below my response:
I am assured the Government wants all farmers to receive a fair price for their products and is committed to tackling cases of contractual unfairness in the agri-food supply chain. Government Ministers recognise some poor practices affect producers across several agricultural sectors and have been taking action to address them, but do not believe amending the code is the most appropriate way to do so.
I am aware the Groceries Code was put in place following a detailed market investigation by the Competition Commission in 2008 that found suppliers of groceries to large supermarkets faced unfair risk that adversely affected competition. For producers that supply directly to the 14 largest retailers designated by the Competition and Markets Authority, the code already covers the issues raised in the petition.
The code is enforced by the Groceries Code Adjudicator (GCA). The most recent review was published in July 2023 and found the GCA continued to be an effective regulator. However, Government Ministers are aware there are some areas not covered by the GCA, and the code does not always reflect the farmers’ indirect relationship with supermarkets.
In 2016, the Department for Environment, Food and Rural Affairs (DEFRA) highlighted its intention to target further interventions on a sector-by-sector basis. DEFRA took powers in the Agriculture Act to enable the introduction of statutory codes of contractual practice to protect farmers, which will apply to any business purchasing agricultural products directly from farmers. They will provide greater certainty for farmers by ensuring clear terms and conditions are set out in contracts. DEFRA intends to tailor the powers to those sectors that need them, acknowledging the problems experienced by each sector differ. Government Ministers recognise the need to avoid introducing broad regulation that places burdens on sectors that may not require intervention.
I understand the first review, in the dairy sector, was carried out in 2020, which was followed by a review of the pig supply chain in 2022. Last year, two reviews into the egg and fresh produce supply chains were launched. I look forward to reading the responses to these reviews in due course.
Lastly, I am assured DEFRA will use the powers in the Agriculture Act to introduce legislation wherever it is necessary. I know Government Ministers want to continue to tackle the unfair practices that still exist by working across the sector to see a thriving retail sector that keeps our supermarket shelves filled and protects our fantastic farmers, and the food they produce.
Thank you to those constituents who took the time to contact me about this issue.
