Agricultural Supply Chain Adjudicator

22 Nov 2024

In 2013, the Groceries Code Adjudicator (GCA) was appointed to oversee the relationship between the UK’s largest grocery retailers and their direct suppliers.

However, most farmers do not supply supermarkets directly and so were not covered by the GCA. By using powers in the Agriculture Act 2020, Defra have stated they can improve the relationship between agricultural producers and their direct purchasers.

These powers can mandate that contracts include certain information such as termination clauses, duration and / or pricing information

Agricultural Supply Chain Adjudicator

The first use of the powers introduced the Fair Dealing Obligations (Milk) Regulations 2024 (FDOM24) and established the Agricultural Supply Chain Adjudicator (ASCA) to enforce them.

The ASCA will also be responsible for enforcing any future regulations developed under the fair dealing powers.

Defra recently shared a guest post by Richard Thompson, the ASCA. He explained how his role is to improve fairness and transparency and encourage best practice by influencing positive behaviour change.

They also published full guidance on the ASCA enforcement role, and how to make a complaint on GOV.UK.

Next steps

Wherever there is evidence of unfairness in the commercial relationships between farmers and those who buy from them, Defra stated that they have taken action using the powers in the Agriculture Act 2020 to regulate contractual practice.

Industry engagement on proposals for eggs and fresh produce regulations is beginning now with regulations to follow over the course of the next two years.