In May, the Farmers Guardian reported that representatives from the NFU, CLA and Tenant Farmers’ Association (TFA) gave evidence to the EFRA Select Committee on the Government’s farming policy consultation paper.
The government is facing strong criticism from farmer organisations and other suppliers in the chain wanted the code extended to include indirect suppliers as well as processors, food manufacturing plants and food service companies. Many also wanted the Groceries Supply Code of Practice (GSCOP) turnover threshold to be reduced to £500m, bringing in more smaller retailers, alongside codes governing areas such as deductions in meat-processing plants.
After ministers rejected industry demands for the Groceries Code Adjudicator’s remit to be extended, farming interests are calling for imbalances in the supply chain to be addressed.
“The government must hold all those across the supply chain to account for substandard practices,” said Dr Charles Trotman (left), a senior CLA adviser. “The failure to include relationships of primary producers with processers or manufacturers meant that farmers, who did not have contracts directly with the largest supermarkets, would continue to suffer from the imposition of unfavourable contract terms, delays in payments, and unreasonable notice of price reductions.
Farmers Weekly quoted the president of the CLA, Tim Breitmeyer (right), who emphasised that farmers should get a fairer share of the food pound as the UK moves towards a new farm support system based on public goods:
“Only a small amount of money needs to come back through the food chain to make farmers a lot more profitable”. I give you the example of a loaf of bread. One penny coming back to the farm gate from the price on the shelf at the moment would be the equivalent of £100 a hectare, which is 50% of the basic payment system.”
Mr Breitmeyer also raised concerns about the Food and Drink Sector Council, recently set up by Government to create a more ‘productive and sustainable’ industry. He feared that agricultural concerns will not get much of a hearing and so will not deliver the extra value back to the farm gate.
Rod MacBean, a Shropshire dairy farmer set up a petition for a fair price for milk at the farmgate some time ago.
He points out that agriculture supports thousands of jobs in the rural communities across the UK, stating that for every dairy farmer and employee there are over 35 people employed in the service industries that support them, not to mention banking, insurance etc. the usual service industries we all use, adding that the knock on effect to other agricultural sectors will also have major impacts on our economy, environment and the whole infrastructure of the UK countryside.
He foresees that if the fair farmgate price does not materialise, farmers will have little option but to turn from food production and utilise land for renewable energy production, yielding more profitable and secure long-term income. There would then be increasing reliance on food imports of varying quality which would become progressively more expensive.
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