Food Sector: Profits

Environment, Food and Rural Affairs – in the House of Commons at on 1 February 2024.

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Photo of Barry Sheerman Barry Sheerman Labour/Co-operative, Huddersfield

Whether his Department is taking steps to help ensure profits in the food sector are fairly distributed.

Photo of Mark Spencer Mark Spencer The Minister of State, Department for Environment, Food and Rural Affairs

Powers in the Agriculture Act 2020 allow us to introduce statutory codes of practice to improve market transparency and ensure fairness in the supply chain. We will use these powers whenever we find clear evidence of unfair practices, so that all farmers get a fair price for their products.

Photo of Barry Sheerman Barry Sheerman Labour/Co-operative, Huddersfield

When will the Minister wake up to the fact that, since Brexit, food prices have rocketed? My constituents cannot afford to buy staple foods. Is it not the truth that farmers are struggling? They are getting almost nothing for their milk, their potatoes and the ordinary things that men and women buy in this country. Where is the money from these higher prices going, because it is not to the farmers?

Photo of Mark Spencer Mark Spencer The Minister of State, Department for Environment, Food and Rural Affairs

I can tell the hon. Gentleman where the higher prices are: they are in France and Germany. If we look at the value of a basket of goods, we see that in the UK they are lower than they are in the European Union. If we had followed his model or his advice, we would still be in the EU. Our retailers, our farmers and our processors are working together, and we want to see fairness in the supply chain. We want fairness for the consumer, and also for the farmer, the retailer and the processor.

Photo of Virginia Crosbie Virginia Crosbie Conservative, Ynys Môn

Ynys Môn farmers and the farming community are important to food production, and their profits are vital to our Anglesey island economy. Does the Minister agree with Aled Jones, the president of National Farmers Union Cymru, that Welsh Government sustainable farming schemes will have “damaging consequences”, including the potential loss of 5,500 jobs in the sector?

Photo of Mark Spencer Mark Spencer The Minister of State, Department for Environment, Food and Rural Affairs

I pay tribute to my hon. Friend for how she campaigns on behalf of her constituents. I know that Welsh farmers are very concerned about the Welsh Government’s approach to Welsh agriculture. Here in England, we are trying to support farmers in producing top-quality food and looking after the environment, and I think the Welsh Government need to reflect on how they should influence their farmers to do exactly the same.