Sarah Dyke

It is a pleasure to serve under your chairship, Dr Allin-Khan. I congratulate the right hon. Member for South Holland and The Deepings (Sir John Hayes) on securing this important debate. The number of English farms has fallen by nearly a quarter in 20 years, with dairy farms, which are highly prominent in Somerset, hit particularly badly. We all know that British farmers have faced a long list of challenges, such as the impact of Brexit, sky-high energy prices, terrible Tory trade deals, botched transitions from the basic payment scheme to the environmental land management scheme, the shattering blow of the family farm tax and the no-notice cancellation of sustainable farming incentive grants. Now the Government seem set to make significant cuts to the nature-friendly farming budget in their upcoming spending review. On top of all that, farmers earn tiny profits and are regularly exposed to industrial-scale exploitation by supermarkets that are focused on delivering cheap food and meeting their just-in-time supply model. Many households are living in food insecurity as a result of our unbalanced food system, and food poverty is on the rise. Food security is vital for national security, but farmers are increasingly being forced out of business as they cannot afford to make a living growing food for our tables. I cannot stress enough how important our farmers are to national security. As Professor Tim Lang’s recent report on the UK civil food resilience gap highlights, we must act now to ensure the UK’s food resilience and preparedness. We are living in a volatile and unpredictable world, and we must be ready for international shocks to food supply chains, so I urge the Minister to talk to his DEFRA colleagues, to look carefully at the damage being caused to the UK agricultural sector, and to support a system that empowers and rewards British farmers to produce high-quality food while protecting nature. Of course, we must also address the power imbalance that farmers face on their route to market. The UK groceries sector is dominated by a handful of supermarkets, with around 95% of food sales controlled by just 10 retailers. That concentration means that supermarkets wield significant power over farmers, leaving them with very little negotiating leverage. Unethical practices from large supermarkets can lead to contracts being altered at the last minute, and supermarkets often use loss leader strategies, selling some products at a loss to attract more customers. That practice squeezes suppliers, which are often forced to accept lower prices, and if they do not meet their quotas, they will be punished. In large part, that reflects the limited scope of the Groceries Code Adjudicator, which covers too few retailers. Many farmers and suppliers fear retaliation if they report unfair practices, while two thirds of farmers report feeling fearful of being delisted if they speak out of turn about supermarket behaviour. That leaves them underpaid and vulnerable. The Liberal Democrats are calling for a change in the Groceries Code Adjudicator. It needs teeth, and it needs to be strengthened.