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Supermarkets and Regional Farming

My hon. Friend tempts me to comment on a matter that is under collective Government discussion. I am sure that he is aware of the position in respect of the ombudsman, and we hope to bring forward a conclusion shortly. I should like to comment on the relationship between retailers and farmers. The GSCOP will be for companies that supply directly to retailers. Most fresh produce is supplied to retailers through intermediaries such as packers, processors and fresh food wholesalers rather than by farmers. The Competition Commission found that the combined total value of direct purchases from farmers by six large grocery retailers amounted to less than 2 per cent. of the total value of agricultural production. Although most farmers will be outside the direct scope of the GSCOP, the limited value of direct purchases by grocery retailers from farmers understates the closeness of the trading relationship between primary producers and grocery retailers. Farmers may be members of, or shareholders in, intermediary businesses that market their produce to grocery retailers, so the GSCOP will provide them with some certainty. Given the importance of food to the economy, the Government are working with regional development agencies and regional food groups to develop businesses and market their products, promote regional food and farming and create demand for local seasonal produce. Where consumers continue to want good, distinctive and nutritious local food, supermarkets and local shops will continue to be able to supply it. My hon. Friend the Member for Chorley mentioned sustainable production. He will know that a raft of documents and consultations have been going through DEFRA recently, and "Food Matters", food security measures, the "Food 2030" programme and food miles could all be the subject of debates in their own right. I will write to him and update him with the latest on each of them, as well as on training, skills and colleges for the agricultural community and the progress that we are making on cutting regulation for the agricultural industry. I congratulate him and our other hon. Friends who have participated in this debate, and if I have missed out any of the issues that he raised, I will write to him as promised. Question put and agreed to.