The government’s latest advice to farmers? “Negotiate better prices with retailers.”
It’s a neat soundbite, but it completely ignores the structural realities of the UK food system—realities built over decades of policy decisions, trade deals, and market consolidation that have left farmers with almost no leverage. Never mind that you are asking individuals to deal with trained negotiators who hold all the power.
How did we get here?
For over 20 years, UK agriculture has been caught in a policy paradox—we demand world-leading animal welfare, food safety, and environmental standards, yet expect consumers to pay the lowest possible prices for food. It’s a model that simply does not add up.
Across Europe and Scandinavia, food is treated as a valued commodity. Consumers in France, Germany, Italy, Denmark, and Finland spend between 11-17% of their total budget on food.
In the UK, that figure is just 9.45%—one of the lowest in Europe.
Yet, our farmers operate under some of the most stringent regulations in the world, aligned with European values of food production rather than the low-cost models of the US or South America.
This is the fundamental contradiction: the UK wants the ethics, safety, and sustainability of European food production but at the prices of countries with far lower standards. We want to have our cake and eat it.
The Red Tape Squeeze
The government loves to talk about "cutting red tape," but in reality, it has added more barriers to British farmers competing on a level playing field.
Competition law stops farmers from bargaining collectively
The Competition Act 1998 & Enterprise Act 2002 prevent farmers from forming large, unified groups to negotiate better prices with retailers.
Meanwhile, supermarkets have consolidated power, creating an imbalance where five retailers control nearly 80% of the UK grocery market.
Trade policy undercuts domestic production
Post-Brexit trade deals have exposed UK farmers to cheap imports that don’t meet UK food production standards.
The Australia and New Zealand trade agreements allow tariff-free imports of meat and dairy that do not meet the same environmental or welfare requirements imposed on UK farmers.
This means British farmers are competing with cheaper, lower-standard imports—while still being held to UK regulatory standards.
Retailer power and the illusion of free markets
While the Groceries Code Adjudicator (GSCOP) exists to prevent abuse, it doesn’t regulate pricing—so supermarkets are free to dictate farmgate prices.
The UK supply chain operates on just-in-time logistics, meaning supermarkets push risk down to farmers, expecting them to absorb input costs without guarantee of fair returns.
Diversification: A Solution for Some, Not for Most
The government often suggests diversification as a way for farmers to shore up income—but this isn’t viable at scale.
Large estates or well-located farms can set up farm shops, tourism, or energy diversification.
But the majority of UK farmers—particularly tenant farmers—don’t have the capital, land tenure security, or infrastructure to pivot away from core food production.
Diversification should happen where possible, but it cannot be the answer to a broken market structure.
Building Trust and Strong Leadership in Agriculture
We need to stop reducing farming policy to a battle between farmers and retailers—this is not a zero-sum game. The reality is that everyone in the food system relies on each other. Instead of sitting across the table fighting over margins, we need to be around the table together, negotiating from a place of shared interest.
This starts with strong, unified leadership in UK agriculture. The sector must ask itself:
Do we need a leader who represents only farmers, or one who represents the whole food system?
Are we focusing on fighting individual battles, or should we be reshaping the conversation entirely?
Right now, leadership in agriculture is too fragmented, too reactive, and too focused on winning short-term fights rather than securing long-term solutions. We need someone—or a coalition—that can bridge the gap between farming, retail, policy, and consumers.
Without that, we will continue to erode trust and remain locked in an adversarial system where neither farmers nor retailers benefit in the long run.
So What Needs to Happen?
If the government truly believes in British farming, it needs to stop passing the buck and make structural changes.
Agriculture must be declared a national priority
The Farming Minister and the Prime Minister must be aligned—if farming is strategic, it must be backed with policy, not platitudes.
If it isn’t a priority, then we need a clear, collaborative food security strategy to prevent a future supply chain crisis.
Level the playing field
Competition law must be reviewed to allow farmers to bargain collectively, just as other industries can.
Supermarket market power must be investigated to prevent price suppression at the farmgate level.
A coherent food and trade policy
Stop undercutting UK farmers with low-standard imports. If we demand British standards, then imports must meet the same.
Establish clear, realistic targets for UK food production, net zero, and land use—rather than expecting farmers to do it all at once.
A better understanding of the context and landscape
That's what we are trying to do with What Keeps Farmers Awake at Night - our independent research on the farming landscape.
The Bottom Line
Right now, farmers are being asked to deliver everything, everywhere, all at once—blindfolded, with their hands tied behind their backs.
Our recent research shows that farmers are pragmatic, solutions-driven, and ready for change. But they’re left asking the same question: what is the priority here?
Because if the government keeps pretending farmers can "ask nicely" for better prices, the next supply chain crisis will force farming to the top of the agenda faster than anyone is prepared for.
It’s time for leadership that unites rather than divides. The priority is that our leaders need to stop fighting over the problem and start negotiating the solution, get around a table, and not approach it from two opposing sides to thrash out the middle ground. It becomes a no man's land and a stalemate.
Not that Keir or Daniel seem to know what a priority is when it comes to farming..
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