Draft Fair Dealing Obligations (Pigs) Regulations 2025

Tim Farron Excerpts

Tuesday 22nd April 2025 General Committees

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your guidance this afternoon, Ms Vaz. Likewise, I am very supportive of the draft regulations. The UK pig industry is something that we should all be proud of. It is instrumental to our rural communities right across the country and an important exporter, but it also maintains the highest quality of produce and animal welfare standards. That is important in an era in which we are seeking potential deals with countries whose animal welfare standards may not be quite so high. The industry is vital to our rural economy and our food security. John Maynard Keynes said, among many other wise things:

“Markets can remain irrational longer than you can remain solvent.”

The reality is that the market is ambivalent, at best, on whether we have a strong pig sector. Without safety, security and fairness in the sector, we stand the chance of losing it all together.

It is right that the intervention happened, as other Members have talked about. Post Brexit, we saw a terrible crisis, particularly in staffing of the sector, which saw the culling of tens of thousands of healthy animals, as we have heard. That was appalling for those animals, and appalling and heartbreaking for the families involved. A devastation lingers, which has driven us in no small part to this stage. It is right to give credit to the previous Government. The consultation began in 2022, following that crisis. I have also paid tribute to all who were involved in that consultation, providing the feedback that was instrumental in leading us to where we are now.

The spokesperson for the official Opposition, the hon. Member for Epping Forest, talked about the other threats that farming faces, and that is absolutely true. People talk about the impact of the inheritance tax changes on family farms, which will be a massive blow for hundreds in my constituency. We will wait and see. I have tabled plenty of parliamentary questions to try and find that out, but the University of Cumbria’s research tends to conclude that the underspend on the current departmental budget for the environmental land management scheme will be in the region of £400 million. That money is not in farmers’ pockets, and that undermines our ability to have a food security. As I mentioned, a fair market is crucial to food security. If we lose pig producers and pig farmers, we simply offshore the industry and end up in a situation where our ability to secure pig products becomes more difficult, more expensive and, importantly, less secure. These regulations will build in transparency, security, clarity and fairness in the pig sector, in particular for the producers themselves.

Let me say a word about the role of the Groceries Code Adjudicator. In no small part, the draft regulations are necessary because we do not allow the Groceries Code Adjudicator to intervene in arrangements where there is not a direct link between the producer, the farmer and the retailer. Yet, a massive majority of deals are with pig farmers, or indeed other farmers, and a processor of some kind or another. I am proud that one of the things that came from the Liberal Democrats manifesto and went into the coalition agreement was the establishment of the Groceries Code Adjudicator. I was frustrated, though, that we ended that Government with it not having the powers that we wanted it to have.

To protect farmers of all kinds, I would love the Minister and the Government in general to consider very seriously ensuring that the Groceries Code Adjudicator can accept referrals on the fairness or otherwise of deals between farmers and processors, not just farmers and supermarkets. Anonymity should be kept within the system. We can see why a farmer would not want to refer their deal, because it might be the only one they have, even though it is not a fair one. Third parties such as those present, the National Farmers’ Union and other organisations should be permitted to make referrals anonymously on behalf of those farmers who are being ripped off.

On top of that, the referee—the Groceries Code Adjudicator—should simply be given yellow and red cards to mean something, to hold those more powerful parts of the industry to account. There are thousands of producers, but only a handful of processors and supermarkets, so of course it is an imbalanced and unfair market. A referee has to have cards—otherwise, what is the point? My final point about the Groceries Code Adjudicator is that, last time I checked, it had five staff—what is that up against an industry that is massively better supported? Let us support our farmers by ensuring that the market is fair and that it is refereed fairly and strongly. The draft regulations go a small way to achieve that in the pig sector.