Thank you to everyone who has contacted me about food production and the Groceries Supply Code of Practice.

There is clearly an issue of unfairness and imbalance in the food supply chain. We need to take complaints from suppliers seriously and act to make the sector work more efficiently, effectively and equitably so that risks and rewards are shared more fairly. We are already losing too many British growers and food companies and there is a danger that without action more will also have to withdraw from food production. That is bad for them, the UK and UK food security.

I am aware of complaints from food producers about the behaviour of supermarkets, such as not offering fair deals, taking too long to consider cost price increase requests and to pay invoices, changing, cancelling or not honouring original orders, and rejecting produce over aesthetics rather than quality. This also produces a significant food waste problem.

I am concerned by producers’ reports of a problematic and unpleasant dynamic in the relationship between buyers and suppliers. I share concerns over the tiny proportion of the profits that primary food producers often receive. I know sometimes farmers are left with less than 1%. This cannot be a fair reward for the efforts made and the share of the production risks. The reward must outweigh the risk if farmers are to continue producing food.

However, it is important to not jump to conclusions about exactly where the fault lies, and it is not entirely fair and accurate to solely blame supermarkets. Behaviour varies considerably across the sector, and we must also consider the role of the intermediaries such as food manufacturers, processors, importers and packers.

A Government consultation on contractual relationships in the fresh produce sector opened on 14 December 2023 and will close on 22 February 2024.

Clearly farmers and growers in this country are struggling, with increases in costs, tight profit margins, avian flu, changes to government support schemes and shocks through Brexit, COVID-19, the war in Ukraine and climate events impacting on crops and harvests. I can assure you I back British farmers and suppliers and a strong, thriving British agricultural sector.

Thank you once again to all who have contacted me about this important issue.

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