Food Supply Chain Fairness Bill and the Groceries Code Adjudicator – What Farmers Need to Know
The UK’s food supply chain is undergoing significant changes, with the introduction of the Food Supply Chain Fairness Bill (the ‘Bill’) and the strengthening of the Groceries Code Adjudicator (‘GCA’). These developments, championed by Alistair Carmichael MP, are to ensure that farmers and food producers receive fair compensation for their contributions.
The National Farmers Union (‘NFU’) have been at the forefront of these changes, NFU President Tom Bradshaw said the NFU “fully supports” the introduction of the Bill and thanked 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. This is crucial for farmers to begin understanding and asserting their position within the supply chain and 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 19 March 2025 with Alistair Carmichael MP delivering a ten-minute speech. The Bill is currently in the early stages of the legislative process. The core purpose of the Bill is to address the alarming evidence that the burden of risk is often placed on farmers/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. increased remit and resource which should facilitate faster intervention and prevent issues from escalating. These developments have sought to enhance the GCA’s powers by providing 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 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/producers, the Bill 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.
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