Farming provides valuable income and jobs to rural communities such as ours, and I agree that supporting the growth of the sector must remain a key component of the Government’s priority of growing the economy. Government must commit to tackling contractual unfairness in the agri-food supply chain and Ministers should work to ensure farmers receive fair prices for their products and are properly supported.
The previous Government commissioned the Fresh Produce Supply Chain Review to enhance fairness across the industry, helping British farmers and growers secure a fair return while ensuring consumers continue to enjoy access to high-quality, fresh British produce. With the review concluded, the current Government has continued this important work and introduced Fair Dealings regulations to improve contractual practices in the UK dairy and pig sectors.
I recently wrote to the Minister to highlight the vital role farming plays in sustaining rural communities such as Beverley and Holderness and received the following response from Dame Angela Eagle DBE MP, Minister of State:
“The Government sees food security as national security and understands the need for a food system that supports British farmers. We therefore share your constituents’ aim to ensure that farmers receive fair treatment from other parties in the supply chain, including supermarkets, to help ensure the long-term sustainability of British agriculture.
It is for this reason that Defra supports the work of the Groceries Code Adjudicator (GCA), whilst also introducing additional protections enforced by the Agricultural Supply Chain Adjudicator (ASCA). We are using ‘Fair Dealing’ powers in the Agriculture Act to target specific issues in each sector.
These regulations can mandate that contracts are in writing and include key information such as duration, termination clauses, and pricing structures. A sector-by-sector approach is being taken, with regulations already introduced for the dairy and pig sectors and reviews ongoing in eggs and fresh produce.
Proposals for regulations in these sectors have been shared with stakeholders and are open for engagement. The Government has also announced a fairness review of the combinable crops sector. Following these reviews, we will work with industry stakeholders to determine future priorities.
The Government remains committed to an evidence-based approach and will monitor the effectiveness of these regulations, including through future reviews of the dairy sector. As you may be aware, the fourth statutory review of the GCA commenced on 1 April 2025 and covers the period from 1 April 2022 to 31 March 2025. A public consultation closed on 5 August, and the Government is currently considering responses. A report will be published as soon as practicable.
Defra officials are working closely with the Department for Business and Trade to ensure that evidence relating to supply chain fairness is fully considered. Baroness Minette Batters is also leading the new Farm Profitability Unit, which will examine barriers to increasing farm profitability and is expected to report within six months with recommendations for future policy interventions.”
I want to assure you that I remain committed to backing British farmers. It is only right that producers receive a fair price for their work.
