For too long, farmers and growers here in Lincolnshire and elsewhere have been forced to endure injustice at the hands of supermarket giants. These commercial behemoths have shown little regard for the interests of those who produce the food that fills their shops' shelves and the nation's pantries. It is time they were brought to heel.
Farmers across Britain rise before dawn, working tirelessly to produce food while facing countless challenges beyond their control, amongst them the perpetual unpredictability of weather and persistent pests and diseases. Yet perhaps the weightiest burden they bear is the greed of corporate retailers they supply. For years, the prices paid to primary producers have borne little relation to the true value of their work, with a consequent fractured food chain whereby farm businesses teeter on the edge of insolvency while supermarket giants wallow in wealth.
The dominant supermarkets have long been guilty of cartel-like behaviour, from price-fixing schemes to discounting tactics. The 2007 dairy scandal comprised major retailers colluding to inflate prices. More recently, in December 2024, supermarket chains such as Aldi sparked controversy by slashing the price of six vegetables to a mere 15 pence each — an offer quickly replicated by other major retailers. This coordinated market manipulation, rightfully drew sharp criticism from Parliament. Rather than promoting healthy competition, these supermarkets focus on safeguarding their high street dominance by routinely bending the rules of fair play through unfair contracts, delayed payments, and price gouging.
To its credit, the last Conservative Government enshrined in law the means to clamp down on malpractices via the Agriculture Act 2020, designed to protect farmers and growers from unjust practices. The Act’s provisions include the prohibiting of Unfair Trading Practices such as last-minute order cancellations, late payments, and retroactive contract changes, all of which undermine farmers' livelihoods.
The current Government must use these powers as necessary to ensure greater transparency in supply chains, guaranteeing farmers a fair price for what they produce and recompense when retailers play fast and loose. While post-Brexit trade deals should be sure to preserve domestic farming standards, preventing cheaper, lower-quality imports from undercutting UK farmers.
As a Government Minister, I was involved in the creation of the Groceries Code Adjudicator (GCA) in 2013, knowing the need to safeguard food producers from supermarket abuses. Twelve years later, farming costs have grown exponentially, but farm-gate prices remain far too low, as farmers in Lincolnshire and beyond continue to face exploitation by retail giants increasing their profits regardless of the commercial viability of the farm businesses that feed us. Which is why I have called for a Parliamentary debate on the urgent need to expand the GCA's powers.
To enhance the effectiveness of the GCA, the Government should heed calls for its remit to be broadened to cover online giants and wholesalers. Additionally, the NFU are right that enforcement powers should be strengthened through more proactive investigations and increased fines for unfair practices. Simply saying the groceries code needs updating is not enough; we need a more substantially effective authority that guarantees farmers our nations farming future.
As we navigate increased global volatility, marked by trade disruptions and geopolitical instability, prioritising farmers and food security must be an immediate priority. Our over-reliance on imports has left us vulnerable – ill-prepared for potential disruptions. As the need for a resilient and self-sufficient food chain in Britain has never been clearer, the Government can play its part by using public sector procurement to foster domestic production. Food security is not a luxury — but essential to our nation’s future.
Our farmers and growers are the backbone of our rural economy, so they must be treated justly and renumerated fairly. It's time to level the playing field; it's time to enforce the Agriculture Act; and time to give the Groceries Code Adjudicator the power needed. Our farm businesses can wait no longer — and neither should they.
