The Tenant Farmers Association and Farmers For Action are calling for an urgent review of the powers of the Groceries Code Adjudicator.

Today’s call follows a refusal from the Adjudicator’s office to a joint request from FFA and TFA to investigate the activities of the supermarket, Iceland, in promoting its recent campaign in which it has discounted the retail price of milk.  Farmers for Action has been leading protests against Iceland following its decision to sell four pints of milk at 89p to its customers.

FFA Chairman, David Handley said “the concern was that Iceland was forcing its direct supplier, Muller, to part fund this marketing campaign which would be a clear breach of the Groceries Code.  In the discussions which FFA has had with Iceland it has rejected those claims and is prepared to open its books to independent scrutiny by the Adjudicator in order to allow their to be transparency.  Frankly, I am disgusted that the adjudicator is either unwilling or unable to take on this investigation as this is exactly the type of issue that most people would expect the Adjudicator to take on.  The Government needs to think urgently about what the Adjudicator is supposed to do”.

TFA National Chairman, Stephen Wyrill said “all through the current crisis in the dairy sector the Government has taken a hands-off approach.  It is naively trusting of the marketplace to deliver sustainable solutions and has therefore failed to take any positive action to ensure the resilience of the dairy sector.  The one thing it has in its armoury is the Adjudicator which seems to lack the teeth necessary to do a viable job.  Although the ink on the statute book is barely dry, we need the Government to reopen the legislative framework which established the adjudicator and we call upon DEFRA and the Department for Business Innovation and Skills to review the role, duties and responsibilities of the Adjudicator without delay.

Both the TFA and FFA provided evidence to the House of Commons Environment Food and Rural Affairs Select Committee at which both organisations stressed the importance of the role of the Adjudicator and the need to ensure that sufficient powers were available to the Adjudicator to carry out a worthwhile job.  Both FFA and TFA agree that there needs to be a stepped change in terms of transparency so that all parties involved in the dairy sector – from farmer to consumer – can have confidence in the supply chain.

Roger Williams of the Welsh Liberal Democrats commented that sharp decreases in the price of commodities, such as milk, lamb and beef, have highlighted the limitations of the Grocery Code Adjudicator.

Recent experience with the dramatic reduction in the price of milk being sold off the farm has highlighted the restricted role that the Grocery Code Adjudicator or supermarket ombudsman has at its disposal. The adjudicator can only supervise the voluntary code relating to the sale of produce from the farmer directly to the supermarkets. Most farmers, including the 2500 in my constituency, almost all sell to abattoirs and meat processors before their product lands on the supermarket shelf.

It is important that the whole of the food chain, from the farm gate to the customer, is transparent if we are to ensure that no excessive profit is made by anyone of the suppliers.

I was pleased when the Adjudicator was introduced, but now we need to build on that to make sure that it is fit for purpose. That both the farmer and the consumer is getting good value.”

Formulating a Common Agriculture Policy for the whole of the European Union is a difficult ask. Farming is so different in Greece than it is in Finland. However, a common policy is important so that UK farmers can export for instance the 40% of our lamb production, which exceeds home demand.

An official from DEFRA said that they believed direct payment to farmers were a poor and inefficient way of supporting agriculture. However, I pointed out that for those farmers experiencing low prices for milk, lamb and beef the direct payment ensured that there was sufficient cash in the business to invest for next year’s production. The Pillar II money, while being welcomed, will not replace the importance of direct payments.

Meurig Raymond, President of the NFU, made a powerful and impressive presentation on the importance of agriculture and the food industry to the UK economy. 15% of our national GDP derives from food production, processing and retail.