The Environment, Food and Rural Affairs (EFRA) Committee has written to Food Security Minister Daniel Zeichner MP, detailing its finds so far from its inquiry into ‘Fairness in the food supply chain’.
The Committee has asked the Government to focus on five key areas in order to improve fairness and resilience in the supply chain. These are:
- The impact on farmers of inflationary pressures and rises in input costs
- Promoting more equitable sharing of risks throughout food supply chains
- Reforming contractual practices in supply chains by progressing the introduction and implementation of fair dealing powers across all sectors
- Considering the scope of the Groceries Supply Code of Practice and the resourcing of the Groceries Code Adjudicator to monitor and regulate supermarkets’ relations with producers
- Establishing formal mechanisms to facilitate information sharing between the Agricultural Supply Chain Adjudicator and Groceries Code Adjudicator.
The Committee’s letter lists interim conclusions in each of the above areas, which MPs intend to explore and test further as their inquiry develops. Members will question the Minister on these issues in an evidence session on Tuesday 1st April.
The letter comes ahead of the Committee Chair, Alistair Carmichael MP, introducing his Food Supply Chain Fairness Bill in Parliament.
Chair of the Committee, Alistair Carmichael MP, said: “Customers are facing higher prices for food at the shop check-out whilst farmers are not receiving a fair reward for their products or a price that covers their own increased costs at the farmgate. The current debate around farmers’ incomes has put the spotlight on the situation and revealed the low profit margins that many farmers make on their produce, sometimes even ending up with zero profit or actual losses.
“But our inquiry has heard of specific concrete measures, which the Government could look to implement relatively easily and in a short time frame to address these imbalances in the food supply chain. We are urging Defra to review the evidence we and our predecessor Committee has taken and take practical common-sense actions to improve fairness throughout supply chains. This would be a win for consumers and a win for producers.”
