I am grateful to the right hon. Gentleman for his intervention. I do fundamentally agree with him that this problem predates covid and the war in Ukraine. The market has been broken in some sectors for a very long time; perhaps from even before the right hon. Gentleman’s time in this House, let alone mine. This code was meant to—I highlight the phrase “meant to”—fix some of these problems. However, it has not, and that is why we are in Westminster Hall this afternoon arguing, with a fair deal of consensus across the political divide, that action needs to be taken.
The Promar report of December 2023 attests to the severe cost increases within the horticulture sector: energy costs have soared by 218%, fertiliser by 47%, and labour by 24%. In addition, in 2023, for example, egg production in the poultry sector fell to its lowest level in over nine years, culminating in the evident shortage of eggs on the shelves in 2022 and 2023. Meanwhile these spikes—and this is the important bit—are not being reflected in the
prices the tertiary sector is willing to pay. That blatant mismatch has all but erased profits, leaving consumers with stark consequences: a diminished output, shelf shortages and the regrettable loss of over 8,000 agricultural businesses in recent years.
The groceries supply code of practice was instituted with the aim of promoting a functioning market—a fair market. But, as I think we have all agreed this afternoon, its reach falls short, and its grasp lacks the precision needed for effective oversight. As it stands, the GSCOP regulates entities with a turnover exceeding £1 billion. That threshold, as others have said, is disproportionately high, leaving countless suppliers—and by extension, our farmers—unprotected. An adjustment is desperately needed. It is imperative that we prioritise lowering the threshold to, I would suggest, the NFU’s ask of £500 million; although we can always debate the precise numbers around that. That change would increase accountability and ensure more comprehensive coverage.
To secure our agricultural backbone, we must also adamantly support the extension of the GSCOP’s reach, if not for the sake of fairness in our markets and the wellbeing of our invaluable farmers, then for the preservation of our nation’s food security and rural economy. The reach must expand beyond supermarkets to encompass processors, the hospitality sector and manufacturers, which are key players in the supply chain that can exert just as much pressure on our farmers as the largest retail giants. The foundation laid by the Agriculture Act is robust, but it is not the only solution. It is but the ground upon which we must build that fairer market, and we must not falter in doing so.
5.35 pm