Groceries Supply Code of Practice

Anthony Mangnall Excerpts

Monday 22nd January 2024 Westminster Hall

[Anthony Mangnall (Totnes) (Con)]

I apologise for being late, Mrs Murray—I was stuck on the train. I also apologise to the hon. Member for Neath (Christina Rees) for missing the first part of her speech, but I congratulate her on bringing this issue forward and on championing an extraordinary campaign that has seen well over 100,000 people across the country sign a petition of the utmost importance—one that is trying to make farming work, make farming pay and make farming fairer. I commend the Riverford campaign for all its work not only to create the organic market but, once again, to speak up for small farmers across the country.

The five principles have been mentioned already, but it is important to ensure that they are hammered home: buying what you committed to buy, paying on time, committing for the long term, agreeing on fair specifications and paying what you agreed to pay. Those are not radical ideas or concepts that would be out of place in any other sector, yet farmers often find themselves on the wrong side when supermarkets change tack. We often talk in this place about certainty and about how we want to create it for businesses, small and large, across this country, but where do farmers fit into that? We should strive every day to ensure that the people who fill our bellies and put food on our tables are supported, so that they can carry on doing so.

Having listened to the speeches made in this Chamber already, I find it extraordinary that the Liberal Democrats have at no point mentioned the legislation that has been passed, which might facilitate some of the things they are asking for. We could talk, for instance, about the Procurement Act 2023—I accept that many colleagues might not be interested in it, because it is perhaps one of the most boring pieces of legislation that has ever passed through this place, but it is also one of the most important. It is designed to shorten supply chains, to help small businesses and small farmers access the supply chain, and to ensure that they can provide food for public organisations. That then opens up the idea—this came up in the debate I held a few weeks ago on this very subject, at which none of the Liberal Democrats were present—that we could use the £4.6 billion of taxpayers’ money we spend in this regard to support small farmers in the fruit and veg markets and farms across this country. The opportunity is there for us to be constructive in this place and to come up with ideas as to how we can use that legislation to the most effect. I ask the Minister, when he stands up to speak, what steps he will take to ensure that the Procurement Act comes forward and that we look at how we can change our methodology.

I agree entirely with my hon. Friend the Member for Rutland and Melton (Alicia Kearns) about ensuring that the Agriculture Act is used to the most effect, amending the supply chain and updating the Groceries Code Adjudicator. I also point out that there is a requirement in the Act for the Secretary of State to update the House on food security every few years. What is the purpose of that, if we have no farmers producing food? If that threshold of just under 50% of farmers go out of business, we should be deeply alarmed. Not only will we see our food security targets reduced, but our whole structure of supporting and rewarding our farmers will go down the can. While we have time, can we use the Agriculture and Procurement Acts to proper effect on a cross-party basis—there is clearly agreement on this—to find ways to make sure the food security target is heading in the right direction?

As I have said many times in this place, we should sometimes think about being a little more French. We must think about how we structure our farmers’ markets and how we can allow them to diversify. There will be no telling what we can do if we ask for fairness in a contractual agreement that can create certainty and opportunity for small farmers and ensure that taxpayers’ money is spent in the right way—to support those farmers, while also opening up new avenues for them. We could create a new generation of farmers who will be able to supply us with our needs.

My last point is about ELMS. Even the Guardian columnists who live in my constituency have commented that, in their eyes, the one benefit from Brexit has been the invention of ELMS—the end of our involvement in the common agricultural policy and the introduction of the new environmental land management scheme. As colleagues have mentioned, there is no doubt that there have been positive steps, but to make the scheme as effective and impactful as possible, we must ensure that ELMS goes further for small farmers, who do not always have the ear of Parliament or the ability to raise their voices—although, obviously, the Riverford campaign has shown what small farmers can do. We must make sure that their voice is always heard at our meetings and that we can diversify those markets.

There is a huge opportunity in front of us. I hope the Minister will listen, because not only could there be a cross-party working group on this issue, but we could start it in rapid order as well.

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[Kirsty Blackman]

My apologies. I hope that it gets the attention it deserves from not just around the House—it is clear that all sides agree that there is a problem and it needs to be solved—but the wider public; although some of them have taken the opportunity to sign the petition, others may not have heard of it. Hopefully, this debate will bring a bit more attention to it and ensure that more people are aware of the problems facing farmers right now.

I have some points from the Scottish Government and from a Scottish perspective. We are looking for clarity and certainty on the future of rural funding. We are committed to maintaining direct payments, but it would be incredibly useful to know exactly what will happen in the future. We are also still looking for more information on the EU labelling rules—the labels that say, “Not for EU”. The Scottish Parliament has the right to make decisions on labelling because it is a devolved matter. However, the UK Government are making decisions and saying that they apply across the whole UK. We do not want that burden to be put on our farmers when we are not choosing for that to happen. Anything the Minister can do to ensure that there are communications with the Scottish Government so that they are kept as up to date as possible on the labelling issue would be useful.

On spending and how farmers are managing at the moment, there continues to be an issue around immigration, in relation to both seasonal workers and food manufacturing —in particular when it comes to abattoirs—despite the fact that the Government have introduced temporary, short-term visas to allow people to take on those roles.

There is a significant issue with vets. Food manufacturing ends up costing significantly more because if it is much more difficult to get vets, it is even more difficult for farmers to get what they need in terms of producing costs. Lastly, the issue around seed potatoes continues to be significant and, as far as I know, does not look like it is going to be solved. It would be helpful if we were able to export seed potatoes again. The Scottish Government have created an £180,000 pilot fund for abattoirs and small food producers. If the UK Government were willing to look at the results of our pilot, once we have them, they may be keen to take on that way of funding small producers and abattoirs to ensure that they continue to keep their heads above water into the future.

We cannot lose our farming industry. We also cannot allow consumers to be ripped off when they are buying food at the supermarket. I have very little sympathy for supermarkets that are making billions when my constituents cannot afford food and farmers are being paid pennies—if that—in every pound for the food they produce.

The UK Government’s food security targets are all well and good, but there needs to be more intervention to ensure that they are met: things like the trade deals, for example. During my time on the EFRA Committee, it seemed to me that nobody had thought about how those might impact farmers in these islands. It seemed that it was just, “We have decided that this is a good thing and therefore we are doing it”, and that farmers’ voices were not heard during those negotiations. I know that lots of things need to be taken into account when trade deals are signed—I absolutely get that. But the fact that farmers seemed to be so sidelined and not listened to in the process really concerned me.

[Anthony Mangnall]

I thank the hon. Lady for making that important point. She is absolutely right that farmers should not be forgotten in our trade deals. As a member of the Business and Trade Committee, I ask her whether she will therefore welcome the fact that the Trade and Agriculture Commission is on a statutory footing. Will she also recognise that under the Constitutional Reform and Governance Act 2010, we will have a debate on the comprehensive and progressive agreement for trans-Pacific partnership, which will give every Member the chance to debate this issue, talk about farming, and review the advice from the Trade and Agriculture Commission, which will be reviewing all future trade deals?

[Kirsty Blackman]

I appreciate that the Trade and Agriculture Commission exists, and I appreciate the CRAG processes, but I do not think that is enough. There should be more say for Parliament. I understand the UK Government’s arguments for why the commission does not have that, but leaving some of the most detailed scrutiny to Select Committees is not ideal. Select Committees do a great job, but every Member should have the opportunity to make decisions on this issue—not just to have a say on the CRAG processes.

[Anthony Mangnall]

I thank the hon. Lady for being so generous in taking interventions. I agree with her; indeed, this is becoming a point of violent agreement. Parliament is getting more of a say, because of the work of the Select Committee—not just my work, but that of many others on that Committee, who have pushed to strengthen CRAG, to ensure that we will have a voice in that process. We have also strengthened the ways in which Members are updated on the progress of trade deals. I gently make the point, because it is important, that over the last four years there have been fantastic cross-party improvements to our trade deals, although that is not to say that there is not further to go.

[Kirsty Blackman]

I am astonished to find myself agreeing with the hon. Gentleman, but there has indeed been progress. However, there is still further to go. More could be done to allow Members to have a say.

Mrs Murray, in this room you have heard today the voices of people who listen to their constituents and are heavily involved in their constituency. I would like those voices—indeed, voices from all parts of these islands—to have a say, but I still think that we are not quite there yet.

Farmers and crofters absolutely deserve a fair return for the costs and risks involved in their work. They produce the highest quality food and drink. Also, the environmental benefits of their work are significant. The landscape management and climate change mitigation work that farmers do has been mentioned, as well as the economic benefits of farming. All those things are important. Contracts should reflect the real costs of farming and should allow for regular review as well, especially in the event of unexpected shocks.

Although farming is absolutely about long-term planning, farmers cannot work out five years in advance that inflation and fertiliser prices will go through the roof, so contract reviews need to take place, so that they can reflect the costs that farmers face, particularly when those costs go up. Changing the GSCOP is important, as is giving the GCA more teeth.

Lastly on the SNP’s position, we agree with NFU Scotland that the UK Government have a key role to play in helping to engage the retailers and food service companies, to ensure that supermarkets do not price-gouge, that food growers and their supply chains are sustainable, and that food processors and producers, farmers, fishermen, food manufacturers and those involved in abattoirs are fairly compensated for their hard work and dedication to feeding the people of these islands.

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[Mark Spencer]

I wholly recognise that challenge. I am an ex-dairy farmer, and we left the dairy sector as a farming family in 2001. We did that because it was economically challenging; we could not make it pay. I think the milk price at the time was around 28p a litre at the farm gate. I can say to her that if I were offered £5 a litre tomorrow, there is no way that I would go back into the dairy sector. Once someone has left the industries, getting back into them is very difficult, and that is recognised throughout the supply chain. Major retailers do recognise it, and it is particularly true for dairy and pigs. It is also true in the fresh produce sector, because the skillsets and machinery that are required take a lot to procure. Going back into those sectors is very difficult. We need to make sure we protect it, but processors and retailers recognise that they must not kill the golden goose that is the UK farming sector.

Last year, we launched two further reviews into egg and fresh produce supply chains. The public consultation on the egg sector supply chain closed on 22 December, and we are in the process of analysing the responses. As I said, the review into fresh produce was published on 14 December and closes on 22 February. Anything that hon. and right hon. Members can do to promote that to their constituents, so that they can feed into it, would be very welcome. We will publish the responses for each review within 12 weeks of the closing dates, and we will provide a summary of the findings and our next steps for each sector. We can only decide what action is needed once we have analysed the responses, but I can assure Members that we will use the powers in the Agriculture Act to introduce legislation wherever it is necessary. I hope this debate will encourage anyone with relevant views in the fresh produce sector to engage in the public consultation.

[Anthony Mangnall]

The Minister probably knows what I am going to ask. I welcome the update and the announcements he has made, but could he say a few words about the Procurement Act 2023? The measures will take effect in October 2024, so perhaps he will help the House to understand the value of that for small suppliers and small farmers across the country, especially when it comes to spending £4.6 billion of taxpayers’ money, predominantly on food.

[Mark Spencer]

My hon. Friend has made the point himself, but I pay tribute to him and the Business and Trade Committee for the work that they have done to make that opportunity available to smaller producers up and down the country. I encourage those producers to engage not only with the national Government, but with local government, to try to supply local schools. Of course, the Government have a responsibility to make sure that our procurement assists and helps UK producers.

I hope the debate will encourage anyone with relevant views to feed into the consultations. I hope it will help us to understand the issues being faced by the sector and allow us to protect our farmers, who, in turn, protect our fantastic landscapes and produce beautiful, quality food. As a Government, we 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 but also protects our fantastic farmers, the landscapes that they hold so dear, and the food that they produce.