Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to ensure supply chain fairness in the food sector from farm to supermarket.

The Government wants all farmers to receive a fair price for their products and the Government is committed to tackling any contractual unfairness that might exist in the agri-food supply chain.

Powers contained in the Agriculture Act 2020 enable us to introduce statutory codes of contractual practice which would apply to processors and other businesses when purchasing agricultural products directly from farmers. We intend to use these powers in a targeted way where there is clear evidence of unfair practices in specific agricultural sectors and statutory codes will help address the issues.

In 2020, the Government carried out a consultation seeking views from farmers and processors in the dairy sector on whether future regulation could be used to strengthen fairness and transparency in the supply chain to ensure farmers are treated fairly.

It was clear from responses that a minimum framework of contractual standards was required, which provides businesses with the flexibility to respond to changing market conditions while also offering improved protections for farmers. We continue to work closely with stakeholders during the development of regulations and intend to introduce legislation later this year.

A subsequent consultation was conducted between July and October 2022 exploring issues in the pig sector. We are analysing the responses and considering appropriate next steps. A Summary of Responses, which will outline the main findings and conclusions from the consultation, will be published in early 2023.

The Government will continue to work closely with all sectors to discuss any supply chain issues.