Carmichael calls for stronger regulation to ensure “fair deal” for farmers

Orkney and Shetland MP, Alistair Carmichael, has called for a “fair deal” and tougher market regulation of supermarkets on farm gate prices. Mr Carmichael noted the past work of the Groceries Code Adjudicator which was set up to give a better deal for farmers selling to major supermarkets, but warned that market failure risked undermining farming communities.

Speaking in the debate, Mr Carmichael said:

“If the Government find it so difficult to put money into farming in the way my hon. Friend describes, could they not perhaps give a bit more attention to ensuring that farmers get a fair price for their product at the farm gate? The Groceries Code Adjudicator has not achieved what we wanted it to, but surely somebody, at some point, has got to address the fact that that market is failing, and it fails to the disadvantage of our farmers and rural communities.”

Responding, Tim Farron MP said:

“I am extremely grateful to my right hon. Friend for making that point; he is absolutely right. The Groceries Code Adjudicator has the capacity to potentially make a big difference for farmers and growers—producers of all kinds. But the reality is that it does not have the sanctions and remit. It is not allowed to take third-party referrals from the likes of us or the NFU on behalf of farmers who are being stitched up by processors or retailers. It is absolutely right that the Government support farming, but the market should be fixed so it does not exploit our farmers either.”

Speaking after the debate Mr Carmichael said:

“It is right that in recent investigations market regulators have started to take a closer look at the ways in which supermarkets manage their prices. Now we need to see a direct look at the relationship between farmers and these major corporations.

“If we want vibrant farming and crofting communities in this country then it cannot come from a race to a bottom, but through a fair deal and a fair price for farmers and food producers. Ministers need to be proactive to get this system working as it should.”