TFA calls for new deal for farmers in supply chain

George Dunn, chief executive of the Tenant Farmers Association (TFA), was responding to Defra's Health and Harmony consultation on the future domestic agricultural policy.

He said: "Much is said about the extent to which some within the farming industry have to up their business skills and become more market focused," he said.

"Yet, British farmers face a massive imbalance in supply chains often leaving them vulnerable to unreasonable behaviour and poor returns.

"The ever increasing production standards being demanded of farmers is not matched by an ability to recover the higher costs that producing to those higher standards bring. This is a legitimate area for Government to be concerned about."

He said that if a truly sustainable food system was to be achieved, working at the best environmental and animal welfare standards and providing high quality products to consumers at reasonable prices, things needed to change. "We cannot allow the continuation of poor returns to farmers through the supply chain. Farmers must be properly rewarded for the great job they do," said Mr Dunn.

"If we don’t deal with these market failures, consumers will lose out and cannot be protected from imported products produced to inappropriate standards in new trade deals. Instead we risk exporting our source of primary production and losing the wider public benefits that farming provides for our nation."

He called for an expanded role for the Groceries Code Adjudicator; spot checks on retailer and food service compliance; mandatory price reporting throughout the supply chain, taking action against unfair contracts; protection against sub standard imports and facilitation of farmer collaboration and supply chain integration.

"Sadly, there is no quick fix, but if the Government is serious about achieving the goals laid out in its Command Paper, we need better regulation of our food supply chain," said Mr Dunn.

The National Sheep Association (NSA) responded to the consultation by reiterating the need for sheep farming businesses to be productive and profitable to deliver economic, environmental and societal benefits.

Phil Stocker, chief executive, said the fundamental barrier to progress was a lack of core business profitability due to high business costs and comparatively low product prices.

"This is exacerbated by a culture in the UK of chasing cheaper food prices, and our future trading relationship with the EU will have an impact too," he said, "Similarly, a barrier to encouraging young people and new entrants into agriculture is the lack of reward – both financial and moral."

A sheep health scheme would support farmers in continuing to make on-farm improvements while simultaneously reducing their carbon footprint.

He said: "Investing in health measures through such a scheme would improve productivity, efficiency, the environment and welfare. It would also avoid the need to raise welfare standards in legislation, which has the potential to raise production costs and reduce competitiveness."

The association also wants more encouragement for farmers to work together in research, land management initiatives and marketing.

Mr Stocker said strength and scale could be built through collaboration, but only over time.

"Farmers are going to experience huge change over the coming years and we want to see a transition that allows them plenty of time to adapt and minimise disruption. We need the deal with the EU completed, our new Agriculture Bill on the statute books, and a food policy agreed, and then a minimum five-year period."