The introduction of the Food Supply Chain Fairness Bill in Parliament marks a significant development for the UK’s agricultural sector and broader food industry. This proposed legislation, introduced by Chair of the Environment, Food and Rural Affairs Committee Alistair Carmichael MP, is designed to address long-standing imbalances within the food supply chain, ensuring that farmers and food producers receive fair compensation for their contributions.
Despite increased productivity and technological advancements, UK farmers’ incomes have remained largely stagnant for decades. Research by the Food, Farming and Countryside Commission (FFCC) shows that over the past five years, the average farm income has been £32,272—equivalent in real terms to the mid-1970s. Farmers face mounting pressures from falling farmgate prices, increased import reliance, and the consolidation of supply chains, which has placed significant power in the hands of a few major retailers and suppliers. The dominance of large corporations in areas such as animal feed, fertiliser, and machinery has further restricted farmers' ability to negotiate fair prices and maintain profitability.
The Food Supply Chain Fairness Bill seeks to address these inefficiencies by enhancing the powers of the Groceries Code Adjudicator (GCA). The proposed reforms would strengthen oversight of retail procurement practices, ensuring a more equitable distribution of value within the supply chain. The bill also prioritises increased public procurement of UK-produced food, reinforcing domestic market resilience and reducing dependence on imports. Updated labelling regulations are also intended to provide consumers with greater transparency about the origin and production standards of their food, which Carmichael hopes is “an opportunity for a fairer deal where it really matters to our communities.”
The bill’s introduction coincides with broader food security concerns in the UK. Reductions in UK international development funding, combined with geopolitical instability and the ever-looming climate discussions, pose risks to global and domestic food supplies. The FFCC report warns that an overreliance on a small number of large farms and corporations is a strategic vulnerability, reducing adaptability and increasing susceptibility to external shocks. The report also argues that the current emphasis on low-cost food production has hidden long-term costs, with negative consequences for environmental sustainability, public health, and national food self-sufficiency.
For businesses operating within the food supply chain, the bill signals an evolving regulatory landscape that will demand greater transparency and compliance. Companies will need to reassess procurement strategies, supplier agreements, and sustainability commitments to align with the emerging legislative framework. Fair pricing mechanisms and enhanced supplier relations will become critical not only for regulatory adherence but also for maintaining corporate reputation and consumer trust in an increasingly values-driven marketplace.
As the Food Supply Chain Fairness Bill advances through Parliament, it presents an opportunity for industry stakeholders to engage in shaping a more resilient and equitable food system. The legislative push toward supply chain fairness, coupled with broader market dynamics, underscores the need for proactive industry adaptation. Businesses that align with these principles will not only support the long-term stability of UK agriculture but also enhance their own strategic positioning in a rapidly evolving market environment.