Farmers: Retail Trade
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment her Department has made of the effectiveness of the current regulatory framework in ensuring fair treatment of (a) farmers and (b) small food producers by large retailers.
Answered by Daniel Zeichner
Farmers should always receive a fair price for their products, and the Government is committed to tackling unfairness in the supply chain wherever it exists. Central to this is our work to improve contractual practices in agriculture, where we are introducing ‘Fair Dealings’ regulations using powers in the Agriculture Act 2020.
Fair Dealings regulations have already been introduced for the UK dairy and pig sectors, and further regulations are in development for the egg and fresh produce sectors too. The Government also recently announced the launch of a new review into issues facing the combinable crops sector. We will conduct a statutory review into the effectiveness of these regulations in due course.
In terms of those who supply large retailers, the Government also supports the work of the Groceries Code Adjudicator (GCA), which enforces the Groceries Supply Code of Practice (GSCOP) and regulates the relationship between the largest grocery retailers and their direct suppliers.
Evidence from previous statutory reviews of the GCA and from annual supplier surveys suggest that the adjudicator has been highly effective in enforcing GSCOP. The Government recently launched the fourth statutory review of the GCA’s effectiveness and has an ongoing public consultation open which closes on 5 August. We encourage anyone interested to respond to the review’s consultation and will carefully consider the views received.
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