The government has launched a review into unfair practices in the combinable crops supply chain, it announced today.
The eight-week consultation promises to bring in stronger protections for arable farmers, similar to the Fair Dealing reforms in dairy, pigs, eggs and fresh produce sectors.
The government said that “improving fairness will help ensure resilient domestic production and support the long-term health of the food system”.
The consultation kicked off on Wednesday 10 December and seeks views on issues such as clarity of standards, sampling and testing procedures, supply volumes, data sharing and dispute resolution, to inform proposals for clearer contracts and fairer treatment for producers.
The aim of the consultation is to ensure farmers always receive a transparent price and understand what factors determine it.
“Farmers should have confidence that the contracts they sign are fair and transparent and work as they should,” said farming minister Angela Eagle. “Our strong food system needs to be built on solid foundations, with farmers treated fairly.
“This consultation is a chance for growers to tell us where changes are needed in their supply chain.”
A welcome opportunity
The NFU has welcomed the consultation as a “real opportunity to address the current imbalance of power” in the sector.
It said that it had been calling for the government to bring the supply chain more in line with the dairy and pig sectors, which have had similar government intervention.
“For too long, there has been an imbalance of power within the combinable crops supply chain, with growers being treated unfairly and shouldering the largest burden of risk,” said NFU combinable crops board chair Jamie Burrows.
“That’s why we have been campaigning hard to persuade government to tackle unfair practices, so growers have a stronger voice, better protection and fairer returns for the food they produce.”
Burrows pointed to the NFU’s Harvesting Growth strategy, where the union called for clear, transparent contracts to boost confidence and help farmers to make informed business decisions.
He said that he was confident that through this consultation the sector could become “stronger and more resilient”.
The NFU will be consulting with its members to get a range of views to form the basis of its submission to the government.
“This is a fantastic opportunity to set out our case for a change of culture to build a better future for the UK combinable crops sector,” said Burrows.
It comes as the government has published the first annual report from the Agricultrual Supply Chain Adjudicator which has initially focussed on the milk sector with developments on the pig sector to be detailed in future reports.
“Fair contracts help to create a farming sector that is more resilient and profitable,” said agricultural supply chain adjudicator, Richard Thompson.
“Farmers should always receive a fair, transparent price for their produce, underpinned by a clear, written contract,” he added. “We’re committed to tackling contractual unfairness wherever it exists through our Fair Dealings Regulations.”
He said that the first year had been about “new beginnings with a focus on delivering value to those we serve, starting with ensuring transparency and fairness in the milk sector”.
“This is important now more than ever, as milk prices at the farmgate face downward pressure due to global oversupply of milk volumes,” he explained.
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