The Food Supply Chain Fairness Bill and Groceries Code Adjudicator – What farmers need to know
by Laura Mackain-Bremner and Amy Peacey, Clarke Willmott
The UK’s food supply chain is undergoing significant changes, with the introduction of the Food Supply Chain Fairness Bill and the strengthening of the Groceries Code Adjudicator (GCA).
These developments, championed by Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, aim to ensure that farmers and food producers receive fair compensation for their contributions.
The National Farmers Union has been at the forefront of these changes and NFU president Tom Bradshaw has said that it “fully supports” the introduction of the Bill, thanking Mr. Carmichael for putting this “important issue” on the agenda.
The Bill’s introduction raises awareness about farmers’ rights and the potential for fair trading practices and this is crucial for farmers to begin understanding and asserting their position within the supply chain.
Below we provide a breakdown below of what you need to know.
The Food Supply Chain Fairness Bill
The Bill was introduced to the House of Commons on 19th March this year and it is currently in the early stages of the legislative process. Its core purpose is to address the alarming evidence that the burden of risk is often placed on farmers and producers in their relationships with processors, manufacturers and retailers.
The types of provisions that we expect to see that will impact farmers include:
Increased Transparency
The Bill seeks to promote greater transparency across the supply chain, allowing farmers to better understand the pricing mechanisms and market dynamics that impact their returns.
Written Contracts
The Bill encourages mandatory written contracts between farmers and processors/retailers. This should provide greater clarity and legal certainty by outlining payment terms, volume commitments and quality specifications, thus reducing the potential for ambiguity and exploitation.
Fair Payment Prices
The Bill aims to address issues such as late payments and retrospective price adjustments. It seeks to enforce reasonable payment timelines and prevent unfair deductions.
Addressing Unfair Trading Practices
The Bill aims to prevent unfair trading practices which can include last minute order cancellations, unilateral contract changes and the transfer of excessive risk onto the farmer.
The Groceries Code Adjudicator
The GCA plays a crucial role in enforcing the Groceries Supply Code of Practice (GSCOP). The GCA is independent and seeks to level the playing field between farmers and retailers, ensure fair treatment and provide a recourse for unfair practices.
The GCA remains committed to protecting the anonymity of those who bring forward concerns, ensuring farmers can raise issues without fear of reprisal. The increased remit and resource should facilitate faster intervention and prevent issues from escalating.
These developments have sought to enhance the GCA’s powers. The Bill also seeks to give the GCA increased powers to impose substantial financial penalties on retailers that breach GSCOP, which should act as a deterrent against unfair practices.
Conclusion
Although the Food Supply Chain Fairness Bill is not yet in force, its introduction marks a significant step towards the creation of a more equitable food supply chain. By supporting farmers and producers, it also contributes to strengthening the UK’s overall food security.
As the Bill progresses, you should familiarise yourself with your rights under the GSCOP, aim to enforce written contracts to give you added protection and keep records of all transactions and communications. If you experience any instances of unfair treatment/breaches of GSCOP you can contact the GCA.
Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton, and Taunton.
