Farmers fear being ‘blacklisted’ for raising concerns with watchdog, MPs told

Farmers fear being “punished” or “blacklisted” by supermarkets for raising complaints with their retail regulator, MPs have been told.

Liberal Democrat MP David Chadwick (Brecon, Radnor and Cwm Tawe) said the Groceries Code Adjudicator (GCA) should have more remit to ensure a “fair market” for farmers.

The GCA enforces the Groceries Supply Code of Practice and aims to provide a level playing field for domestic farmers and businesses through a set of minimum environmental thresholds for imported agri-food products.

During a Westminster Hall debate on Tuesday, Mr Chadwick told MPs: “Energy and fertiliser costs are rising, subsidy schemes are changing and farm incomes are falling. To make matters worse the Government’s family farms tax threatens to further strain their livelihoods.

“Those are just a few of the battles that farmers face. Their industry deserves a fair market and it is for these reasons that the Liberal Democrats introduced the Groceries Code Adjudicator during the coalition years.”

He added: “It’s my belief, and the belief of many farmers and producers I represent, that the Groceries Code Adjudicator needs to be strengthened, better resourced and its remit expanded if we are to ensure fairness in our supply chain.”

Mr Chadwick said the GCA is “highly regarded among farmers and the rest of the industry” but farmers have told him they feel it “doesn’t have all the powers it needs to fully level the playing field.”

He called for the GCA to have the power to launch their own investigations rather than having to wait for a formal complaint from a farmer or supplier, and for an increased staff.

He added: “Beyond powers, there remains work to be done on increasing awareness of the GCA among farmers. Although awareness of the GCA and its roles has increased since 2014 it has stalled recently and a significant number of producers still do not fully understand its role.

“More worryingly many farmers still feel reprisals for reporting breaches of the code. A staggering 67% of farmers have reported fearing being delisted should they speak out about unfair practice by supermarkets which means there is almost certainly an under-reporting of incidents to the GCA which undermines its effectiveness.”

He added: “The GCA must give farmers the confidence to report issues and to know that those issues are handled confidentially, especially as many farmers feel they might be punished or blacklisted for making complaints.”

Business and trade minister Justin Madders said the Government takes the issue of fear of reprisals “very seriously”, highlighting that the GCA has a statutory requirement to maintain supplier confidentiality.

He added: “The 2024 annual survey reported 82% of suppliers were aware of its commitment to confidentiality, that’s I think a good report but obviously 18% were unaware of that and clearly there is a perception out there that matters can find their way back to the supermarkets, so I think that’s something we can look further into.”

Mr Madders earlier said there is “strong evidence” to show the GCA has been “effective in promoting compliance with the code and in changing the behaviour of retailers to improve fairness for direct suppliers.”

He added: “It is also positive to see that amongst suppliers there is a high level of awareness of the GCA and the code itself although I did note that (Mr Chadwick) said there was a question about awareness for some farmers, that’s something I’m happy to explore further with him.

“Moreover all three of the statutory reviews of the GCA have concluded that the adjudicator has been a highly effective regulator.”

Mr Madders confirmed the GCA will undergo a further review in March this year and he encouraged Mr Chadwick to voice his concerns on powers and remit of the body to that review.