MPs debate how to improve supply chain fairness

David Chadwick MP led a Wesminter Hall debate on Tuesday 25 February, to address the “deep unfairness at the heart of our food system”. Drawing on a briefing by Sustain, he cited evidence of a power imbalance between farmers and retailers:

• Last year the big 4 supermarkets saw a 97% increase in profits.
• Meanwhile, a survey commissioned by Riverford found that 45% of farms fear going out of business. 75% cited treatment by supermarket buyers as a top concern.
• Only 5% of farmers want to sell to supermarkets due to having little say over prices and not enough connection to shoppers, according to research by Sustain.

Currently, the Groceries Code Adjudicator (GCA) is responsible for regulating fairness in the food supply chain. However, several issues were raised in the debate. The GCA can only take action to enforce compliance with the Groceries Code of Practice (GSCOP) if a complaint is raised. Yet 67% of farmers are reluctant to speak out due to fears of reprisal and being delisted. 

Additionally, the GCA’s authority is limited to regulating relationships between major retailers (with a turnover over £1bn) and their direct suppliers, excluding farmers’ relationships with intermediaries. The GCA is also under-resourced, relying on six temporary and seconded staff. 

In light of these issues, David Chadwick MP stated that,

“The government must strengthen the Groceries Code Adjudicator and the Groceries Code to ensure we have true fairness across supply chains.”

Drawing on Sustain’s recommendations, the MP argued that the GSCOP should be strengthened and its remit extended, and the GCA should be properly resourced and able to proactively monitor supply chain fairness.

Read the transcript of the debate or watch it here.

Will White, Sustainable Farming Campaign Coordinator at Sustain, said,

"It was fantastic to see such strong cross-party support for strengthening and expanding the Groceries Code Adjudicator. A robust regulator is essential to deter unfair trading practices by retailers, which is putting relentless downward pressure on farmgate prices-driving cycles of intensification, debt, and ecological harm. Fair prices for farmers is the fundamental first step to building a just and sustainable food system."

Download Sustain's briefing on improving the GCA and GSCOP

Read our explainer about progress towards supply chain fairness