Supermarkets: Supply Chains
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will make it his policy to prevent supermarkets from cancelling orders from vertical farms at short notice.
Answered by Daniel Zeichner
The Government is committed to tackling unfairness in the supply chain wherever it exists, which includes practices such as cancelling orders at short notice. Using the 'Fair Dealings' powers in the Agriculture Act 2020 we can introduce regulations to increase transparency and protect growers, including those with vertical horticulture systems, from unfair commercial practices.
We are already making progress on developing ‘Fair Dealing’ regulations for the fresh produce sector, which will cover growers that sell directly to retail. These regulations could require that contracts include clear rules on notice periods, fair termination clauses and processes for changing agreed terms.
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