Jeremy's Blog 17th May 2024: The No 10 Farm to Fork Summit

This article by Jeremy Moody first appeared in the CAAV e-Briefing of 16th May 2024

The fruit and vegetable sector is a strong contributor to the value of UK agricultural output. It has been under severe economic pressure as costs, risks and necessary working capital have risen well ahead of produce returns. Weather and labour add to the challenges. Production volumes, areas and confidence have all fallen.

It is clearly magical thinking to suggest that saying the British public ought to eat more fruit and vegetables will naturally lead to them being grown here. That defies the logic of economics, markets and trade which seeks comparative commercial advantage and margin to support finance, investment and production.

It is striking how positively this very varied sector has responded to the announcements from Tuesday’s No 10 Farm to Fork summit. The appreciation of the proposed assistance to innovation and investment in the future, rather than protection and support, fits with the historically commercial character of these enterprises as they face major challenges.

In part, this might simply be a response to being given attention, after feeling so long ignored. More practically, it recognises the assistance outlined for fixed equipment and technology, whether modern glasshouses, controlled environment farming or automated packhouses. Potential planning reforms and policies for energy and water could remove barriers. New work on genetics can answer some climate change threats, increase productivity and combat disease. Both the sector and the proposals are looking to achieve growth.

After the recent Fair Dealing (Milk) Regulations with their guardrails for produce sale contracts, fresh produce is the next sector for this approach under the Agriculture Act 2020 – also eggs and then pork. These are about behaviour, not price or margin. One component of that is the announced appointment of an Agricultural Supply Chain Adjudicator to oversee the operation of the Fair Dealing Regulations.

Such adjudicators appear to be a growing feature of contemporary policies, following the earlier borrowing of ombudsmen for some public sector bodies and then wider issues, including some finance. The Groceries Code Adjudicator was created in 2013 to encourage, monitor and enforce compliance with the Groceries Supply Code of Practice for direct suppliers to supermarkets. We wait to see how the new wider role might interact with this established one.

A non-statutory Commissioner for the Tenant Farming Sector (CTFS) was also announced for England, following DEFRA’s call for evidence in winter and for appointment in the autumn. Referring to the new Agricultural Landlord and Tenant Code of Practice for England but, without further detail, the role is said to be:

“a neutral and confidential advice for tenants, landlords and advisors who have concerns about poor behaviour and complaints that the Code of Practice on responsible conduct is not being followed. The CTFS will also investigate complaints to help resolve issues between landlords and tenants before they escalate to more formal dispute processes.”

It appears envisaged as a role with care for relationships in this sector, not as an advocate for any interest. Much remains to be understood about how this is to interact with existing structures, including the new Farm Tenancy Forum. As Scottish experience shows, the character of the person appointed is critical in a sector where the great majority of those involved, owners and tenants, are individuals, families and small businesses, often with much history between them.

We are at a potentially critical point for the let sector. It has the potential for major growth in responding to our challenges and as part of improving productivity for the competitiveness of farming and food production with its place in ensuring food supply. Yet, history and Scotland also show how the sector can be made unattractive. With the hope that this role can assist a positive future, care will be needed in the practical detail for this role and the actual appointment.