Supply Chain Contract Fairness: Where Next For Fresh Produce?

With similar work in the pipeline for fresh produce, Defra’s launch of a consultation into unfair practices in the combinable crops supply chain signals the potential direction of travel for the UK horticulture sector on contract fairness.

Following a review into supply chain fairness, Defra’s combinable crops consultation focuses on how contracts in the arable supply chain are structured, where risk currently sits, and how to improve fairness and transparency between growers, traders, and processors. 

Strategic Pathways for Produce

Any resulting regulations are likely to set precedents on the norms for “fair dealing” and “reasonable contracts” across the agriculture sector. 

This could pave the way for horticultural businesses to argue for similar, stronger rulings for fresh produce, such as: clear written terms, volume/price transparency, and better cancellation notice periods. 

The consultation demonstrates the government’s willingness to be involved in contract design, strengthening the case for robust rules for horticulture to ensure agri-food sectors align with benchmarked protections.

As the evidence builds from arable farmers, it should become easier for fresh produce businesses to outline identical behaviours in its own sector, such as: last‑minute order changes, delistings, and rejection practices.

Improving Fairness Across Supply Chains

Improving fairness across the supply chain is a government priority, according to Defra, and a stronger, more transparent system is essential to long-term food security. 

“Farmers should have confidence that the contracts they sign are fair and transparent and work as they should,” said Farming Minister Dame Angela Eagle in a Defra press release.

The combinable crops consultation builds on the wider programme of agri-food sector‑by‑sector reviews looking at supply chain fairness and contractual practices. 

Already, Fair Dealing Regulations are in place for milk and pigs. The work for eggs and fresh produce remains under review.

Separate Consultation For Fresh Produce

For fruits and vegetables, Defra has carried out a separate consultation on contractual relationships in the UK fresh produce industry, explicitly aimed at whether contract reform could give growers greater certainty, and rebalance risk and reward. 

The aim is to improve fairness in the fresh produce supply chain by increasing transparency and tackling unfairness where it exists in contracts between producers and business purchasers.

That fresh produce work was driven by the same underlying issues that now motivate the combinable crops review, namely: rising input costs, climate volatility, and concern that growers carry disproportionate commercial risk for tight-margin supermarket and processor supply chains.

What The Combinable Crops Consultation Seeks

The eight-week combinable crops consultation intends to pool views on how contracts operate and whether they are fair. In particular, the consultation asks arable farmers, traders and processors about: 

• Clarity of standards 

• Sampling and testing procedures 

• Supply volumes 

• Data sharing 

• Dispute resolution 

Defra said the feedback will help shape proposals for clearer contracts and fairer treatment for arable producers. The aim is to ensure farmers receive a transparent price for their produce and understand how that price is set. 

The outcome is likely to be regulation or guidance on minimum contract standards, written terms, notice periods, and dispute mechanisms for the arable sector.

The government’s aim is to protect farmers in trade deals, strengthen supply chain resilience, lower costs for consumers, and deliver a thriving, innovative food sector through the Good Food Cycle.