Poor beef prices in 2014 and this year’s plunge in the price of milk have underlined the need for the Government to create an Agricultural Ombudsman to ensure that both food producers and the UK’s food supply are protected, according to a beef industry association.

The National Beef Association (NBA) called for action on the issue last year and has reiterated its demand for a watchdog, alongside calls from MPs and other groups working within agriculture, who want the adjudicator's remit to cover indirect suppliers as well as producers who sell directly to retailers.

NBA Chief Executive Chris Mallon said on Thursday, "Britain really needs to consider and protect its domestic food producers, because there is so much global competition for food.

"Dairy Farmers are only doing what they were told they needed to do - they expanded their businesses and now their prices have collapsed. We saw the same situation in the beef sector last year; as soon as we increased production in response to a supply and demand, the processors cut prices.

"This treatment of our primary producers cannot continue and the Government needs to take action now."

The NBA issued calls for an Agricultural Ombudsman at last year's Beef Summit and demanded action from the Government again this week, as the precarious position producers face is highlighted by the plunge in the milk price.

The Government acted to create a Grocery Code Adjudicator to rule on issues between the major supermarkets and their suppliers after a sustained campaign by producers. Though the role was filled in early 2013, the watchdog does not yet have the power to fine retailers involved in bullying practices, and there have been no investigations into instances of possible exploitation since the adjudicator's appointment two years ago.

The UK’s food production supply chain of producers, processors and retailers is complex. NBA said that, in the beef sector this can mean farmers' returns can drop dramatically while consumers notice very little difference in the prices they are paying in the supermarket.

Mr Mallon continued, "Last summer's Beef Summit suggested a voluntary code of practice for the industry, but sadly, we have seen that in practice this simply does not work.

"We need a watchdog with teeth for the entire agricultural sector, to look at contracts between primary suppliers and primary producers - whether that is beef, lamb, eggs, milk or Vegetables - to make sure both sides keep to their side of the bargain. The relationship needs to be put on a formal footing and the Government is the only one with the power to do this, perhaps by extending the remit of the Grocery Ombudsman.

"With a General Election coming up in May, let’s hope the next Government will put Britain’s future food security near the top of its priority list."