House of Commons · Westminster Hall
25 February 2025 · 12 other contributors · 8,632 words
Opened by David Chadwick Lib Dem Brecon, Radnor and Cwm Tawe
Responding minister: Justin Madders
Summarised by AI from the official record, so it can contain mistakes.
David Chadwick raised concerns about groceries code adjudicator in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Groceries Code Adjudicator needs to be strengthened, better resourced, and its remit expanded to ensure fairness in our supply chain.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
There is a deep unfairness in the food system where retailers are making huge profits while farming incomes are falling. Last year, Tesco made £2.3 billion, Asda made £1.1 billion, and Sainsbury’s made £701 million. Energy and fertiliser costs are rising, subsidy schemes are changing, and farm incomes are falling, with 61% of farmers concerned about operating in the next year.
Highlights the background of the Grocery Market Action Group and its role in proposing the groceries code. Advocates for improvements such as applying the code throughout the supply chain, involving third-country suppliers, and strengthening market intelligence. Expressed concern about the adjudicator's ability to instigate investigations on justifiable grounds.
Welsh Government figures show that income fell by 34% between April 2023 and March 2024, with dairy income falling by 59%. Safeguarding future food production in Wales is crucial for fair deals.
Riverford Organic Farmers' research shows that 61% of farmers are concerned about not operating within a year but only 25% believe big grocers support British farmers, indicating the need for more support.
The Groceries Code Adjudicator regulates relationships between grocery retailers and suppliers, ensuring fair prices for farmers. The annual survey shows a reduction in code issues from 33% to 16%, with Co-op topping the list at 98%. Concerned about Labour's family farm tax harming food producers.
During a visit to farms, dairy farmers independently raised the need for processors to be covered by the groceries supply code of practice. Talked about dairy farmers in his constituency wanting the GCA to apply to their work.
Local suppliers in Strangford need fair play, including fair payment and commission terms from supermarkets to support their livelihoods and the rural economy.
Supports Andrew George's comments on the importance of a functioning market to enable the agricultural sector to free itself from public subsidy dependence. Welcomed the introduction of the Groceries Code Adjudicator in 2013, highlighted the impact of private equity on supermarkets, and called for a new regulatory authority to give more status and resources. Referred to the use of private equity in the supermarket sector.
Responded to concerns about the resources of the adjudicator, noting that the current powers provide necessary tools for enforcement. Mentioned the Employment Rights Bill.
The Groceries Code Adjudicator needs proper resourcing and an integrated accountability chain involving primary producers, processors, distributors, and supermarkets to ensure fairness in the supply chain.
The Groceries Code Adjudicator was established by the Liberal Democrats during their time in government to protect farmers' interests. It is important that it has sufficient resources and scope to ensure fair treatment for local suppliers.
The hon. Member highlighted pressures faced by farmers due to supermarket practices, but also pointed out the exploitation of workers in supply chains through low pay and casualised jobs.
Paid tribute to David Chadwick for bringing this issue to Parliament, endorsed the speeches of other MPs, and highlighted the imbalance in the market with 12 retailers making up 95% of the sector.
Government Response
Justin MaddersThe Parliamentary Under-Secretary of State for Business and Trade
Thanked David Chadwick for securing the debate on Groceries Code Adjudicator reforms. Noted that good policy needs collaboration with farming industry, urging Government to keep the adjudicator under review. Discussed the role of the Groceries Code Adjudicator in enforcing compliance with retailers, noting improvements in retailer behavior. Addressed concerns about resources and investigations, mentioning ongoing statutory reviews and opportunities for further discussions.