London Daily

Focus on the big picture.
Tuesday, Jun 02, 2026

UK farmers sceptical after minister urges them to ‘stand ground’ on fair prices

UK farmers sceptical after minister urges them to ‘stand ground’ on fair prices

George Eustice tells sector facing margins cut to bone by supermarkets they should demand higher incomes
Farmers must “stand their ground” on price inflation and ensure that the rising costs they face are reflected in the prices paid to them by supermarkets for their produce, the UK’s environment, food and rural affairs secretary has demanded.

George Eustice told the online Oxford Farming Conference on Thursday that rising input costs should result in higher incomes for farmers, but that increasing farm gate prices need not result in food inflation for consumers.

“We do need producers to stand their ground and take quite a tough position with retailers to ensure that the money they are paid reflects the costs of their production,” he told the conference.

He said food prices were rising as a result of international pressures, as the price of farm commodities internationally was linked to energy prices, which have risen strongly as economies have recovered from the coronavirus shock. But he said farmers obtaining more for their produce need not affect consumers.

“You can have reasonably modest increases in farm gate prices, and significant impact on farm profitability, that does not result in major changes to consumer inflation,” he said.

Farming leaders reacted sceptically. Producers wield little power against the UK’s mighty supermarkets, a handful of which control the vast majority of the food retail market. The problem of farmers having their margins cut to the bone by supermarkets, and being threatened with the loss of their contracts for speaking out, has been one of the biggest sources of distress to farmers for more than two decades.

Martin Lines, UK chair of the Nature Friendly Farming Network, said: “It’s very difficult for individual farmers to stand their ground against price pressures from retailers who hold all the bargaining power. There is a role for the government to play in giving farmers more power within the supply chain so they are fairly rewarded for food produced to high environmental standards. Government should intervene to ensure contracts between buyers and sellers are fair.”

George Dunn, the chief executive of the Tenant Farmers Association, said: “There is significant imbalance within the supply chain with retailers and food service operators able to wield significant power within the supply chain. Down the years, there have been warnings about the sustainability of the ‘cheap food culture’ to which we have become accustomed and it seems now we are seeing the fulfilment of those past prophecies of doom. However, retailers and food service providers have the means to avoid a catastrophe by allowing their prices to increase.”

Labour accused the government of letting down farmers. Jim McMahon, the shadow environment secretary, said: “Not only is the government neglecting its duty to support British farmers, leaving them exposed to undercutting through inadequate trade deals, ministers now appear to be washing their hands of that responsibility completely. Our rural businesses deserve better and it’s little wonder many are feeling completely let down by the Conservatives’ failings.”

The government’s previous efforts to shift the balance of power, by installing a “groceries code adjudicator”, have had limited impact. Jo Lewis, policy director at the Soil Association, said an overhaul of the UK’s food systems was required: “Eustice is right to say farmers need to get a much fairer share of the value of the food they’re producing, but his suggestion that the solution is them ‘standing tough’ with retailers seems far-fetched.

“Farmers will continue to lack power while they are forced to supply commodity crops into a globalised market for ultra-processed foods. They need infrastructure and skills support from government to help them access shorter, fairer supply chains and they need government to get real food back into shopping baskets by tackling the unhealthy takeover of ultra-processed foods with a national reduction target.”

She said the government’s response to the national food strategy – which Eustice promised for this spring– would be a key test.

Eustice also took a robust line on the potential for price rises caused by a shortage of migrant workers, saying that “employers need not look for cheap labour” from the EU. “There is no reason why the price of daffodils should not rise to £1.10,” he said, a reference to warnings from Cornish growers that they cannot harvest their flowers, at devastating cost to their business.

Eustice cheered farmers by announcing 30% higher payments for environmental stewardship schemes, which reward them for taking basic measures to protect the environment, and there was a cautious welcome from many to his proposals for “environmental land management” contracts that will come into force in 2024, with payments to farmers for a broader range of measures, from soil nurturing and tree-planting, and providing habitats for wildlife, to floodplain and watercourse management.

However, plans by the government to support rewilding through 10 to 15 large-scale pilot projects of between 500 and 5,000 hectares came under fire. Jyoti Fernandes, policy coordinator at the Landworkers’ Alliance union, representing farmworkers, said: “The danger of this approach is that many of the holdings of this size will be land owned by corporations or landed gentry, which means our public money will continue to flow to the very richest in society, while access to land will become increasingly more difficult for new entrants to farming.”
Newsletter

Related Articles

0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×