Environment, Food and Rural Affairs Committee inquiry into fairness in the food supply chain

Transform Trade welcomed the EFRA Committee’s timely inquiry into fairness in the food supply chain. The food supply chain is characterised by inequalities, particularly between primary producers (farmer and farm labourers) and other actors within the supply chain. In some cases, inequalities and unfair trading practices are on the rise.

Market concentration in the UK food supply chain, particularly with retailers, but also with manufacturers and traders, as well as the ‘just in time’ model for UK food supply together create concerning levels of inequality, resulting in primary producers receiving a very small percentage of the retail price of their product, and absorbing inappropriate risks.

Retailers and other food supply businesses could undertake a range of measures to redress imbalances within supply chains, including improved due diligence measures, better transparency and improved ownership structures. Whilst voluntary initiatives have improved some practices, improvements are not sustained when subjected to short term financial pressures, and government action will be needed to bring about sustained improvements in these areas.

The Groceries Code Adjudicator is an important regulator for improving the relationship between suppliers and retailers, towards being a relationship which respects the principle of fair dealing. However, given its limited resources and limited scope, it should in our view be bolstered in order to improve its efficacy.