Will Iran conflict impact food supplies, production and fairness between farmers and grocers?
The EFRA Committee will examine how equitable trading relationships can be ensured between food retailers and suppliers, and how the economic impacts of the Iran conflict could affect the UK food and farming industries.
The session will begin with the cross-party Committee scrutinising the work of the Groceries Code Adjudicator (GCA) and Agricultural Supply Chain Adjudicator (ASCA).
The role of the GCA is to receive complaints and prohibit harmful conducts set out in the Groceries Supply Code of Practice. These include retrospective variation of supply agreements, delays in payments, and ceasing or significantly reducing the volume of purchases without a genuine reason or sufficient notice. The ASCA performs similar functions by enforcing fair treatment within the agricultural supply chain.
Meeting details
There may be questions relating to recent cases involving Aldi and Amazon, and both Adjudicators’ ability to take on major, well-resourced companies. The Committee is also likely to ask how both bodies can use their remits to protect small businesses from unfair treatment amid inflationary pressures linked to the war in Iran.
In the second half of the session, MPs will examine how the conflict involving Iran is affecting supply chains, with particular focus on impacts on the agricultural sector and access to food and drink. Members will explore issues around the supply and cost of fertilisers, as well as the knockāon effects of higher fuel prices. The Committee will also be interested to understand the outlook for potential food inflation and supply problems as the year progresses.