Sustain cautiously welcomes the move, but warns it could achieve little for farmers without stronger powers, better resourcing, and a Defra with the political clout to match its ambitions.
The Government has announced that oversight of the Groceries Code Adjudicator (GCA) will move from the Department for Business and Trade (DBT) to the Department for Environment, Food and Rural Affairs (Defra) on 1 July 2026, in a move designed to create a more coherent approach to fairness across the UK food supply chain.
The GCA, established under the Groceries Code Adjudicator Act 2013, is responsible for enforcing the Groceries Supply Code of Practice - regulating how the UK's largest supermarkets treat their direct suppliers. The transfer brings its oversight in line with Defra's existing responsibilities for agriculture, food production, and - crucially - the Agricultural Supply Chain Adjudicator (ASCA), which handles fairness issues further down the supply chain.
The change delivers on one of the key recommendations from Baroness Minette Batters' Farming Profitability Review, which called for a more streamlined approach to supply chain oversight. The GCA will retain full independence, with no changes to its statutory powers or the Groceries Supply Code of Practice, which remains owned by the Competition and Markets Authority.
Joined-up regulation has been a central ask of Sustain and its allies - most recently through an Early Day Motion tabled with Andrew George MP, which attracted the signatures of 98 MPs, and which called for three specific reforms: bring both regulators together into a single unitary framework under the GCA, with oversight across the whole supply chain; strengthen the GCA's powers and resource base; and empower it to apply the Principle of Fair Dealing.
Farmer support for joined-up regulation is clear: a Riverford survey of 200 farmers conducted in October 2025 found that 75% backed a shift to a single regulatory body.
Farming Minister Dame Angela Eagle said the move would support “a level playing field right across the supply chain,” adding that it would fully protect the adjudicator’s independence and statutory role. GCA chief Mark White said he looked forward to working more closely with Defra to ensure the fair treatment of direct suppliers to designated retailers.
Glen Tarman, Director of Policy and Advocacy at Sustain, said:
“Joined-up regulation is the right goal, but the direction of travel here raises questions we cannot yet answer. Defra has historically been underfunded and carries less political clout than DBT. Whether housing the GCA there will strengthen or weaken its hand in holding powerful retailers to account remains to be seen - and Sustain will be monitoring the outcome closely.
But institutional tidying-up is only worthwhile if it leads to real change on the ground. Farmers and food producers are still being squeezed - by late payments, unfair contract terms, and the sheer power imbalance between large retailers and those who supply them. The GCA’s enforcement powers have rarely been used, and awareness of the Code among smaller suppliers remains low.
A Riverford survey last year found that 65% of farmers feared being delisted as suppliers if they spoke out against supermarkets - that culture of fear will not change through a machinery-of-government transfer alone.
We want to see this transfer used as a genuine opportunity to strengthen protections, not just redraw an organisational chart. That means a more proactive regulator, better resources, and serious consideration of whether the Code itself needs updating to reflect the realities facing today’s suppliers.
The fourth statutory review of the GCA is due to be published when parliament returns - it must lead to genuine strengthening of the regulator's powers and funding, not just further process. Farmers can no longer afford to see missed opportunities for bolder action., We will keep pushing until the economic barriers to a fairer, more sustainable food system are properly addressed.”
Background and context
The transfer forms part of the Government’s stated commitment to smarter, more joined-up regulation. It builds on existing Fair Dealing rules, which Sustain has previously welcomed, while calling for wider application across other food sectors.
The GCA and ASCA are legally distinct bodies with separate remits, and the announcement is clear that this will not change. However, the Government says they will be expected to work more closely together, with further implementation details to follow before the July transfer date.
The fourth statutory review of the GCA, which examined the regulator’s relationship with ASCA and looked at unregulated parts of the supply chain, is expected to be published by DBT once parliament returns from recess.
Sustain's track record on supply chain fairness
Sustain has been working to secure a fairer food supply chain for over a decade. The alliance originally campaigned for the creation of the Groceries Code Adjudicator and, when it later came under threat of abolition, successfully defended it. Sustain also secured fair supply chain trading legal measures in the Agriculture Act 2020 - a landmark legislative win for farmers and food producers.
Sustain's seminal report Unpicking Food Prices shone a spotlight on how unfair trading practices drive down returns for farmers and farm workers, generating significant public and political attention. Building on that momentum, Sustain's campaigns in partnership with Riverford - including #GetFairAboutFarming and #FarmersAgainstFarmwashing - have mobilised more than 100,000 signatures on government petitions calling for supply chain fairness, with a further 20,000 letters sent directly to MPs through Sustain's email action.
Sustain's 2024 supply chain briefing and its response to the Farming Profitability Review have both made the case that without stronger enforcement and fairer dealing throughout the supply chain, farmers will continue to be driven towards intensification and environmental harm.
Defra's announcement is the latest milestone in that long campaign - and Sustain will continue to push for the robust enforcement and systemic reform that farmers, growers and food workers deserve.
Read the Defra press release: Supply chain fairness: Groceries Code Adjudicator to move to Defra
Find out more about the Sustain Sustainable Farming Campaign
An empty shopping trolley in a supermarket. Credit: Makistock: Shutterstock
Sustainable Farming Campaign: Pushing for the integration of sustainable farming into local, regional and national government policies.
