Groceries Supply Code of Practice

Sarah Dyke Excerpts

Monday 22nd January 2024 Westminster Hall

[Sarah Dyke (Somerton and Frome) (LD)]

It is a pleasure to serve under your chairship, Mrs Murray, and I thank the hon. Member for Neath (Christina Rees) for opening this crucial debate.

We need to get fair about farming, because farmers are often disenfranchised in the agrifood supply chain. It requires a concerted effort to tackle the systemic issues, promote equitable relationships and ensure a sustainable and fair system so that British farmers can produce high-quality food for our tables. I rise on behalf of the many farmers in Somerton and Frome, who, like many others across the constituency, are key drivers of the rural economy. They are also the custodians of our natural environment. We must therefore ensure that they get a fair deal for the work that they do and the food that they supply.

The public agree. Polling from More in Common shows that 88% of the public think it is important that farmers are paid fairly for their work, and they would even pay a little more if they knew the money went to support British farming. However, food does not need to be expensive; just a bigger proportion needs to go back to the farmer. Tackling contractual unfairness in the agrifood supply chain is central to ensuring fairness. Farmers are operating in a marketplace where they have little control or say over who they sell their produce to.

Research from Sustain shows that producers receive less than one pence in the pound of the profit that they produce. Forty-nine per cent of British fruit and veg farmers fear that they will go out of business within the next 12 months, with three quarters of them stating that supermarket behaviour is a significant factor. To highlight the stark reality of the issue, Riverford Organic Farmers placed 49 scarecrows outside Parliament earlier today, representing those farmers. As well as farmers in my constituency, farmers in Totnes have said that the Government are not listening to them over subsidies, have let them down on the Australia trade deal and should do more to ensure fair pricing from supermarkets.

[Mrs Sheryll Murray (in the Chair)]

Order. Can the hon. Lady confirm that she spoke to the hon. Member for Totnes (Anthony Mangnall)?

[Sarah Dyke]

Yes, Mrs Murray. My office contacted the hon. Gentleman’s office an hour before the debate.

One farmer described the Government’s trade deal with Australia as a “disaster”, and another as “criminal”. Another said it would

“only benefit Australia, New Zealand and the UK supermarkets”.

It seems that the strong arm of the supermarkets is leaving farmers stranded at the bottom of the supply chain. The imbalance needs to be equalised if we are going to ensure food security in the UK. Many farmers are on the brink, but that is nothing new. The decline has been a long time coming, with 110,000 farms lost since 1990. Growing up in a farming community, I know how damaging that has been to my family, friends and neighbours. Our hard-working farmers know that quality food should not cost the earth, either for the consumer or our precious environment.

Our farmers are the guardians of the countryside. They know that farming and the environment are intrinsically linked. They are responsible for keeping our natural biodiversity flourishing. If we drive family farms out of business, they will be replaced with larger, industrial farms that will be less entrenched in our communities and care less about protecting biodiversity. A Guardian article from 2021 summed it up perfectly when it said that the alternative could be “factory farming with a” thin “green veneer.”

I cannot emphasise this point strongly enough: if we want to maintain our beautiful British countryside, we need to protect our farmers. Farmers need to be able to plan ahead. They need commitment from others in the supply chain, but all too often, that trust is broken as supermarkets vie for cheaper food, reject produce at short notice or simply change their minds, leaving farmers without a market, without an income or security, and so often without a future.

Some farmers are able to avoid selling to supermarkets, but many are left exploited on an industrial scale. Most often, the exploited farms will be small family farms struggling to produce food to suit the ever-changing demands of the supermarkets, whose focus is the pursuit of ever-cheaper food at any cost.

As I have said, the public want farmers to be paid fairly, and they want to be able to access healthy, quality food, but the current system does not allow that to happen. As Liberal Democrats, we want to give the Groceries Code Adjudicator more teeth to address unfairness in all supply chains, not just the transactions related to those who directly supply retailers. Alongside my Liberal Democrat colleagues, I am calling for the Competition and Markets Authority to investigate any profiteering that has taken place among the big supermarkets and food multinationals, and for tougher rules to prevent them from raising food prices more than they need to.

This disenfranchisement among farmers in the agrifood supply chain is complex, with significant social and economic implications, but so many of the Government’s decisions are made in silos, all the while leaving farmers facing financial hardship and food rotting in the fields. The Liberal Democrats listen to farmers, and we know they need a fair deal. We want to give an extra £1 billion boost to British farms to enable more sustainable family farming and to allow them to continue providing the public plate with high-quality, locally sourced, seasonal food at a fair price.