Food Supply Chain Fairness Bill announced

Alistair Carmichael, MP for Orkney and Shetland, introduced his new Food Supply Chain Fairness Bill in the House of Commons on Wednesday (19 March), aiming to secure a better deal for farmers.

The bill aims to ensure fairer prices for farmers and food producers across the UK by strengthening the Groceries Code Adjudicator’s powers, supporting local food procurement, and enhancing labelling requirements.

See also: MPs challenge Defra minister over SFI funding claims

“The market today has a handful of behemoth retailers – the supermarkets – at the top, hundreds of thousands of farmers at the bottom, and a variety of processors, distributors and others in the middle,” he told assembled MPs. 

“Everyone takes their cut and then, at the end of it all, the farmers get whatever is left.

“The power imbalance is more pronounced than any other market that I can think of.”

He further highlighted the pressures farmers have faced following the sudden withdrawal of government support

He noted that the removal of ringfenced funding in devolved regions had left farmers feeling particularly exposed.

“We risk losing domestic food production,” he warned.

“Farmers deserve a fair price for the food they produce.”

He concluded: “Any supermarket that thinks it can rebuild its balance sheet on the back of Britain’s farmers might find itself in front of the Environment, Food and Rural Affairs Select committee.

“And they had better have some good answers when they get here.”

Promises

The bill is a response to ongoing concerns about the pressures on farmers, and it fulfils a key promise Mr Carmichael made during last year’s general election campaign, to reintroduce legislation to empower the Groceries Code Adjudicator (GCA).

He said he was particularly grateful to the 11 cross-party members who had agreed to sponsor the Food Supply Chain Fairness Bill, “representing all sides of parliament and all corners of the United Kingdom”.

Alistair Carmichael © Efra

“That goes to show just how broad the interest is in these issues and why the government should take the campaign seriously.”

The list of sponsors includes MPs from a wide range of political backgrounds including Jayne Kirkham (Labour), Sarah Bool (Conservative), Tim Farron (Liberal Democrat), Ann Davies (Plaid Cymru), Seamus Logan (SNP), Ellie Chowns (Green), and Jim Shannon (DUP).

Proposals

The bill will introduce several provisions designed to improve fairness in the food supply chain.

These include increasing the remit and resources of the GCA, expanding public procurement of British food, and implementing stronger origin labelling for food products.

It also proposes lowering the turnover threshold for businesses covered by the Groceries Supply Code of Practice, aiming to regulate larger companies more effectively.

Mr Carmichael had previously written to Defra farming minister Daniel Zeichner, outlining several key areas in the bill for government action.

This included addressing inflationary pressures on farmers, ensuring more equitable risk distribution, and improving transparency in food production and supply.

The second hearing for the bill is set for 20 June 2025.