Government Consultation on Combinable Crop Contracts Announced
The Agricultural Industries Confederation (AIC) welcomes the consultation on contractual relationships in the UK combinable crops sector as an opportunity for the whole arable sector to provide its views on contractual practice in the supply chain.
Whilst the Agriculture Act can only focus on those immediate buyers of arable goods from farmers, AIC encourages the entire arable supply chain to respond.
Combinable crops, such as wheat, barley, oats, oilseeds and pulses, form a vital part of the UK’s agricultural economy and food system. From farm to end user, the supply chain involves a diverse network of growers, merchants, processors and manufacturers, all operating within a globally competitive market.
The arable supply chain has a long tradition of using written contracts between farmers, buyers and end processors across the whole supply chain. Clear and consistent contracts are used to ensure the safety of food, feed and fuel markets, provide clarity to buyers and farmers, whilst offering flexibility in the market to allow British crops to be traded internationally as global demand requires.
The sector operates differently from other markets which the Department for Environment, Food and Rural Affairs (Defra) has reviewed, such as pigs, dairy or horticulture, sectors with perishable goods that often rely upon aligned contracts with end markets. The arable sector also differs in that buyers and processors are often separate entities, whereas in meat and dairy they are frequently the same.
We look forward to the next steps and will ensure Members are fully briefed on the consultation, including a webinar, further member briefings and the AIC draft response.
AIC has developed some FAQs on how the arable supply chain works, which can be found here: FAQs
Authors
Ed Barker
Rose Riby
Rose Riby is Head of Combinable Crops and Seed. Having worked across these sectors for many years, she has a depth and breadth of experience in roles in grain trading, plant breeding and knowledge exchange at AHDB.