Defra seeks fresh produce growers’ views on contractual fairness

A Defra review to improve fairness in the fresh produce supply chain is underway, aiming to ensure that British farmers and growers receive a fair price for their products, and so maintain a domestic supply for customers.

First flagged at the Farm to Fork Summit at 10 Downing Street in May, the review follows similar exercises in the dairy, pig and egg sectors, using powers under the Agriculture Act 2020.

See also: Defra seeks to end unfair trading practices in UK egg sector

It takes the form of a consultation, seeking industry views on the fairness of contracts between growers and buyers, and examining how supply chain data can be used to improve transparency.

Defra secretary Steve Barclay said: “It is only right that producers should be paid a fair price. This review will help ensure that is the case, as well as delivering on our commitments from the Farm to Fork Summit to provide greater stability and resilience for the fresh produce sector.”

Challenges

Defra acknowledged that the fresh produce sector has faced many recent challenges, including increased energy, fuel and labour costs, as well as extreme weather and unsustainable returns.

“Today’s review is the first step in addressing these concerns, providing support for fruit and vegetable growers, and helping meet the government’s target to keep producing 60% of the food we consume here in the UK,” said a statement.

First step

British Growers chief executive Jack Ward said the review was a really important first step to putting things right in the fresh produce sector.

“From all the feedback we get, it is clear there is something radically wrong with the system, with comments ranging from ‘unfair’ to ‘broken’.

“We need this conversation about how to make the supply chain financially sustainable.”

Mr Ward said it was essential individuals responded to the consultation, as well as organisations.

“Everyone has a different relationship with their customer and it’s wrong to generalise,” he said. “It is important that Defra gets the full picture, including relationships that do work, as well as the ones that don’t.”

NFU horticulture and potatoes board chair Martin Emmett agreed that full participation by growers was essential.

“In a year where we’ve seen shortages of fresh produce on supermarket shelves and continued spiraling costs of production, the message from growers has been very clear – the horticulture supply chain must have fairer relationships that share the risk and reward.”

The review, which will consider the need for further legislation, will run for 10 weeks until 22 February.