tractor in field

Farmers have called for government to increase the GCA's powers

The government is considering expanding the grocery watchdog’s powers to strengthen British farmers in their relationship with major retailers.

A consultation will soon begin on whether the Groceries Code Adjudicator’s (GCA) remit should be expanded to cover growers as well as their direct suppliers, The Telegraph reported.

This follows mounting pressure from the NFU for government to regulate supermarkets’ dealings with indirect suppliers.

In September the Department for Business, Innovation and Skills will launch a call for evidence on whether the adjudicator’s role should be extended, The Telegraph reported. But in July, GCA Christine Tacon warned that if this took place, the scale of the new job would exceed her present powers.

During the consultation, ministers will also evaluate the watchdog’s effectiveness since it was established, reported The Telegraph. The GCA was formed in 2013 after a Competition Commission probe into supermarkets.

It governs supply deals between supermarkets and food producers and in April 2015 it was given the power to fine retailers one per cent of their turnover if they breach the code.

Earlier this year, both Tesco and Morrisons admitted breaking the Groceries Supply Code, the Financial Times reported. But Tacon said that this year all of Britain’s 10 biggest supermarkets have acted on the issues that she has raised with them.

The most common breaches include delayed payment to suppliers, forcing suppliers to pay for better shelf positioning and demanding lump sums. The British Retail Consortium has opposed an expansion of the watchdog’s role.