I beg to move,
That this House has considered farmers, supermarkets and food supply chains.
It is a pleasure to serve under your chairmanship, Sir Mark. I start by paying tribute to farmers, in particular those in my constituency, for their contribution to food security in the United Kingdom.
Food security is becoming increasingly problematic. A combination of unprecedented events has culminated in many farmers facing unsustainable pressures on their businesses, which could have long-term implications for our domestic food production capacity and food security if measures to support British farmers are not taken immediately.
The huge spikes and uncertainty in energy prices since the end of 2021 have had significant cost implications for primary producers. Annual inflation measures are now understating the cost pressures facing businesses and consumers, given that inflation has been apparent for over a year. According to data from the Department for Environment, Food and Rural Affairs itself, compared to the 2019 average, farm input cost inflation stands at 42%, with wholesale energy prices being one and a half times higher.
The UK is seeing a significant decline in production, as horticulture businesses struggle with unprecedented inflation, most notably in energy and labour costs. There are also seasonal shortages of business-critical workers, particularly in the horticulture sector. In the first half of 2022 alone, at least £22 million-worth of fruit and vegetables was wasted, directly because of such gaps in the workforce.
Two of the National Farmers Union’s key asks for the horticulture sector are for a minimum five-year rolling scheme for seasonal workers and the inclusion of horticulture in the energy and trade intensive industries scheme, to help to remove uncertainty and inject confidence in production.
Declining self-sufficiency, coupled with supply chain problems abroad, has resulted in empty supermarket shelves, and the more that we become reliant on imports, the more likely it is that we will see the level of market failure that has led to images of empty shelves across the UK.
In the national food strategy, the Government outlined their ambition to sustainably expand the national production of fruit, vegetables, plants and flowers. British farmers and growers are ready to meet this challenge. However, to achieve that, the Government’s growth agenda must be twinned with reform in the marketplace that levels up the balance of power in the agrifood supply chain and delivers a fair and functioning supply chain.