Calls grow for beefed-up supermarket regulation to protect farmers

Farmers have called on the government to address the power imbalance between supermarkets and growers by overhauling the food supply chain regulator, and make farming feel less “like survival”.

The call comes as a group of farmers, MPs and industry bodies requested that the the Groceries Code Adjudicator (CGA) be strengthened and a single regulator be created to protect farmers and ensure fair treatment by supermarkets.

The group – inspired by Riverford’s #GetFairAboutFarming campaign – accused supermarkets of “exploit[ing] the power imbalance”, with one grower saying the current system means farmers are “negotiating with two hands tied behind [their] back.”

It comes as new independent research commissioned by the organic veg box company found that seven in 10 (69 per cent) farmers surveyed feel the buying relationship between growers and retailers has worsened over the last two years, with 68 per cent saying making a living through farming has never been harder.

‘Unfair system’

The research found 76 per cent of farmers surveyed believe the current supply chain regulatory system does not protect farmers from unfair supermarket practices, and is unfit for purpose.

Three quarters (75 per cent) of respondents believe a single regulatory body to oversee the entire supply chain – from growers through to supermarkets – would ensure fairer treatment of British farmers.

Some 86 MPs have signed an Early Day Motion calling to merge the existing supply chain watchdogs – currently split across two government departments – into one stronger, more effective body.

Farmers are among those backing the calls for a single, central regulator. Over 3,000 people have also written to their MPs in support of better regulation.

Apple grower Richard Stogdon, from Sussex, said the relationship between growers and supermarkets has “substantively deteriorated”. He added: “We take enormous risks in growing these crops.”

Third-generation farmer Jonathan Hoskyns has also stopped supplying supermarkets altogether, saying:“I don’t miss the stress and I don’t miss the worry of not knowing what our fruit is worth until it has all been sold.”

Unbalanced buying practices

Riverford’s research indicated that 65 per cent of farmers feel they have no choice but to accept the terms supermarkets set for fear of being delisted, while 76 per cent of farmers surveyed feel under financial pressure from supermarket buying practices. Six in 10 respondents go as far as saying they consider their farm to be at financial risk due to retailer behaviour (61 per cent).

Farmers are faced with unbalanced buying practices when trading with supermarkets, Riverford said, with 99 per cent of those surveyed saying they have faced at least one ‘unfair’ practice, including cancelled orders, late payments, and unfavourable, unfair or unprofitable pricing.

Supermarkets rejecting produce over unreasonable demands, like specifics on colour, size or shape, leading to waste or a lower price that does not cover costs, are also cited, as is no notice from buyers for changed terms.

This is piling pressure on stretched growers, the survey suggests, with 82 per cent of respondents saying unfair supermarket practices are contributing to stress and poor mental health among the farming community.

Farming ‘shouldn’t feel like survival’

Riverford founder Guy Singh-Watson said: “For three years our #GetFairAboutFarming campaign has been calling for a regulator with real teeth, one that can stand up to supermarkets and help address the huge imbalance of power in our supply chains. Over 113,000 people have backed that call, and even Parliament has debated it, yet farmers are still being failed by a system that’s meant to protect them.

“The Groceries Code Adjudicator’s own research suggests things are improving and that may be the case for the large companies with supermarket contracts, but our findings show the opposite is true for the small and medium-sized family farms that produce most of our food. The problem is worse than ever, with 69 per cent of farmers saying relations with supermarkets have deteriorated over the last two years.

“Farming shouldn’t feel like survival. It should be a livelihood to be proud of: producing good food, caring for the land and looking after the people who work it. How can farmers do the right thing for their soil, their animals and the planet if they’re squeezed for every penny and lack the funds and security to invest in farming well for the long term? And how can shoppers make good choices when they’re being misled by supermarket farmwashing?

“We all want a food system that is honest and fair. Creating a single, realistically resourced regulator to oversee the whole supply chain is a vital step towards that future and would finally hold supermarkets to account.”

Riverford’s #GetFairAboutFarming campaign is backed by an array of public figures, including Ray Mears, Rick Stein, Deborah Meaden and Jimmy Doherty, as well as industry bodies including Sustain, the alliance for better food and farming, and The Soil Association.