Oral Answers to Questions

Debate between George Eustice and Chris Loder

Thursday 28th April 2022 Commons Chamber

[George Eustice]

The Government are taking action. We have made available an additional £500 million to help households with increased pressure on household budgets. We are also taking measures, for instance, to remove tariffs on maize to try to reduce the costs of animal feeds. The hon. Member is right that the supermarkets will absorb some of these costs, but probably not all.

[Chris Loder (West Dorset) (Con)]

What is my right hon. Friend doing to give the Groceries Code Adjudicator some more teeth to make sure that supermarkets do not inappropriately take advantage of the difficulties that we see with food prices? As he will well know, a lot of farmers face great pressure from supermarkets, and some would argue that they actually control the prices that farmers get when that is not really how it should be.

[George Eustice]

The supermarket adjudicator has, in recent years, made good progress in bringing transparency to the way relationships work between suppliers and the supermarkets. In addition, through the Agriculture Act 2020, we have introduced new powers so that in future we will be able to regulate and improve the transparency and fairness of contracts between farmers and processors.

Oral Answers to Questions

Debate between George Eustice and Chris Loder

Thursday 10th September 2020 Commons Chamber

[George Eustice]

We have put in place a number of interventions to help people struggling with food affordability, particularly in lockdown and its aftermath. We continue to keep all these policies under review. We have the free school meals voucher system that ran, as the hon. Gentleman says, over the summer, and there are other measures that we have been working on with local authorities.

[Chris Loder (West Dorset) (Con)]

What steps his Department is taking to ensure that small farmers obtain a fair price from supermarkets for their produce. [R]

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

We want farmers to get a fair price for their produce, and the Government are committed to tackling the contractual unfairness that exists in the agrifood supply chain. Through the Agriculture Bill, we are seeking to strengthen the position of farmers by improving transparency in the supply chain, and there are new powers in the Bill to introduce statutory codes of contractual practice.

[Chris Loder]

I thank my right hon. Friend for his reply, but the supermarket Sainsbury’s is threatening to tear up the contracts of small dairy farmers in West Dorset that supply it with milk if they refuse to sell it a percentage of their calves. Does he agree that Sainsbury’s is abusing its dominant position, and will he support me in defending small farmers across the country from these predatory supermarkets?

[George Eustice]

I am happy to meet my hon. Friend to discuss this issue in more detail. We now have in place the groceries code adjudicator, which regulates the types of contracts that supermarkets can put in place and precludes certain practices, but through the Agriculture Bill, we can go further and stipulate further requirements in contracts in future.