Food Inflation

Katie Lam Excerpts

Thursday 15th January 2026 Westminster Hall

[Katie Lam (Weald of Kent) (Con)]

As ever, it is a pleasure to serve with you in the Chair, Dame Siobhain. I thank the hon. Member for Hornsey and Friern Barnet (Catherine West) for securing the debate.

For many people across the country, rising food prices are one of the most concrete ways in which the cost of living crisis impacts their lives. Thanks to rising costs, many families simply do not have enough money left at the end of the month to save for a home, plan a holiday or even send their children on a school trip.

In general, prices rise because of three things. First, they can rise because too many people want too few goods. If the demand for something grows faster than the supply, the price will of course rise. We saw that in the immediate aftermath of Russia’s invasion of Ukraine. The supply of Ukrainian wheat fell, demand stayed the same and global food prices rose.

Secondly, prices can rise because it becomes more expensive to produce goods in the first place. To keep earning enough to survive, the people who produce those goods will need to increase their prices to cover their growing costs. As my right hon. Friend the Member for Salisbury (John Glen) mentioned, we see that today, as this Government’s energy policies create the highest industrial energy prices in the developed world. Higher energy prices for businesses mean higher production costs, causing prices to rise. The same is true of higher taxes or greater regulatory costs, both of which this Government have imposed on businesses of all kinds.

Thirdly, prices can rise because of external factors, which can also be in response to Government policy. If the Government increase the supply of money, say, or keep interest rates too low, people will be more likely to spend, reducing the relative value of the pound in their pocket and, again, causing prices to rise.

If we talk to anybody involved in producing food in this country, we will hear a lot about the second cause. Costs are rising and prices are rising with them. As I mentioned, that is due partly to energy costs, but also partly to the vast sums food producers must spend to comply with the regulations they need to navigate if they ever want to sell their products.

Let us take dairy farms as just one example. What hurdles must a dairy farmer in Kent, in my constituency, clear if they want to sell milk, cheese or butter? To even begin the process, all dairy farmers must register with the Food Standards Agency as a dairy producer. If they want to turn some of their milk into cheese or butter, they must also get a separate approval as a food business establishment.

Cows must be kept according to regulations set out under the Animal Welfare Act 2006 and the Welfare of Farmed Animals (England) Regulations 2007, which include rules on space, housing and veterinary care. The herd must be regularly tested by the Animal and Plant Health Agency for tuberculosis and brucellosis. They must be specifically protected to minimise contact with badgers, with the construction of specific fences and feeding facilities. Farmers must also create and implement a hazard analysis and critical contact point plan identifying all potential contamination hazards and setting out plans to minimise them. They must test for certain bacteria and must be prepared for unannounced inspections by the Food Standards Agency.

If farmers want to sell milk, they must comply with the Drinking Milk (England) Regulations 2008, which define the appropriate fat content for different sorts of milk and sets out specific rules on pasteurisation. If they want to turn the milk into cheese, they must comply with certain compositional standards, including rules on protected designations for specific regional varieties. If they want to turn the milk into butter, they must comply with the Spreadable Fats (Marketing Standards) and the Milk Products (Protection of Designations) (England) Regulations 2008, including rules on additives and fat percentage.

Then there are rules on labelling and marketing, on mandatory written contracts on milk sales to regulate pricing, and on manure spreading and waste management. If farmers want to adapt their buildings or extend them, they need to navigate the labyrinth of our planning system. Then and only then are they allowed to sell their milk, butter or cheese, and the price in the shops will need to reflect all the costs I have just mentioned if they want to keep the farm running.

[Kerry McCarthy]

It is always easy to criticise regulation, but we often find that regulations are introduced for very real reasons, whether that is protecting public health, animal welfare and so on. Will the hon. Member tell us which of the regulations and requirements she has listed ought to be dropped?

[Katie Lam]

What is important here, and what I am trying to set out, is how many costs farmers have to meet even just to get their produce out of the door. When we talk about food prices, it is inevitable that we will talk about why those prices rise, what the costs are and how they might be going up. Many of my farmers work incredibly hard to put food on people’s tables, and my aim is to talk through the costs they face even just to be able legally to sell their produce. It is important for constituents who are listening to this debate to understand what goes into the pint of milk that they buy.

Dairy farmers live an extremely difficult lifestyle. They work long hours and can never afford to take a day off—the cows will, after all, always need milking. Thanks to farmers’ hard work, we are able to enjoy some of the finest dairy products anywhere in the world. Given the difficulties they face, we should not be making their lives harder by forcing them to navigate mountains of paperwork and endless regulatory compliance. It is bad for them and bad for those who want to buy their products at an affordable price.

[Ms Creasy]

Will the hon. Member give way?

[Katie Lam]

I am so sorry; I am running out of time.

The same is true across every other type of farming or food production, from vegetables to vineyards. For the sake of those who put food on our plates and of families working hard to make ends meet, will the Minister—who I notice is wearing our favourite suit jacket again today, as am I—please explain what steps the Government are taking to reduce costs for food producers and, in turn, for producers across this country?

Finally, those Government hurdles are due not just to legislation. Peter Hall at Little Mill Farm in Marden in my constituency does incredible work with the Felix Project. He gives away thousands of apples and pears from his orchards to be eaten by children who would otherwise not be able to eat them. He would happily sell them to local schools at cost price or lower, but the tangled bureaucracy of procurement makes that impossible. Addressing that issue would be a win for everyone. It would mean healthier food being provided cheaply for local children, supporting our farmers, tackling food waste, and preventing orchards from having to be grubbed up, which releases a lot of carbon into the atmosphere. Will the Minister please set out any plans she might have to make it easier for local farmers to sell their produce to state institutions nearby?