Tories will create watchdog to stop supermarkets 'abusing power'

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Speaking at the Oxford Farming Conference today, shadow environment secretary Nick Herbert will call for a "new age of agriculture" which supports British farmers.

He will warn that some aspects of the way supermarkets treat suppliers could harm producers — who can be hit by unfair or unexpected costs — and consumers.

Shoppers could suffer from lower quality products, less choice and higher prices, he will say.

Mr Herbert will attack the Government for its failure to establish an ombudsman, after a decade in which ministers "devalued British agriculture".

"It is not enough to talk loosely about a fair market or the need for better labelling," he will tell the conference.

"We need action, with a supermarket ombudsman and legislation to enforce honest labelling if the retailers won't act.

"While the Government dithers the Conservatives are clear: we will introduce an ombudsman to curb abuses of power which undermine our farmers and act against the long-term interest of consumers."

He will also say that British farming needs more government support to be competitive: "It's meaningless to talk about a competitive agricultural industry while increasing the regulatory burden on farmers and failing to take the necessary action to deal with bovine TB."

Mr Herbert will say that farming matters in the face of a rising global population and climate change: "In this new age of agriculture, British farming has a bright future.

"But that requires a new start, where government understands that we cannot take farmers closer to the market while undermining their ability to compete.

"If we want to ensure food security in 2030 and beyond, we need to begin by valuing the agricultural industry that will deliver it."

The Competition Commission has recommended the creation of an ombudsman to arbitrate on disputes between retailers and producers and oversee the Groceries Supply Code of Practice, which aims to protect suppliers from unfair behaviour by the supermarkets.

The Government has not yet made an announcement on establishing the ombudsman.