The UK Government’s announcement that the Groceries Code Adjudicator (GCA) will move from the Department for Business and Trade to sit within the Department for Environment, Food and Rural Affairs (Defra) from 1 July 2026 marks one of the most significant regulatory shifts in over a decade for supply chain fairness.
At a time of increasing global instability, supply chain disruption and increased pressure on food systems, ensuring that domestic supply chains function fairly and effectively is not just an issue of equity - it is fundamental to long term food security. It is promising to see the UK Government continue to implement the recommendations from Minette Batter’s Farm Profitability Review.
We have long called for the GCA to sit closer to Defra and welcome this move from the UK Government to create a more joined up approach to supply chain fairness. We hope this will lead to a closer working relationship between the regulation of supermarket relationships and fairness throughout the wider supply chain.
Why does this matter?
The GCA was created in 2013, yet we have consistently been clear that its scope has been limited and that it has not always had the reach or ability to address the unfairness our members experience elsewhere in the supply chain. That said, the GCA and the Groceries Supply Code of Practice (GSCOP) have delivered meaningful systems change within the retail market.
For example, every major supermarket now has a Code Compliance Officer responsible for ensuring buyers act within the Code. Over the lifetime of the GCA, retailer compliance has increased from 73% to 93%, evidence that credible oversight can drive better behaviour. However, we also know that loopholes remain. The use of intermediaries can remove the requirement to comply with GSCOP altogether. That is why we continue to welcome the establishment of the Agricultural Supply Chain Adjudicator (ASCA) and the introduction of the Fair Dealing Obligations.
It is vital that the experience, learning and credibility built by the GCA is shared with the ASCA in its relative infancy. At present, Fair Dealing only applies to dairy and pork, while regulations for eggs, fresh produce and combinable crops are still being developed. Bringing the GCA into Defra should enable this knowledge sharing.
Taken together, these changes move us closer to an end-to-end system of fairness across the supply chain, underpinning both farmer confidence and the resilience of domestic food production.
How does this address fairness?
When we reflect on the implementation of the Fair Dealing Obligations for Milk and Pork it is hard to quantify the immediate fairness that this creates. However, we must stress that the Fair Dealing Obligations aren’t about price, it’s about the process. They also shouldn’t weaken existing good practise, instead they become a safety net. They do require:
- transparency in how prices are set,
- agreed processes for communication when prices change.
This protects farmers from sudden contract variations, unclear terms, or unreasonable behaviour, exactly the kinds of issues the GCA already deals with at the retailer interface. Bringing both systems under the same departmental umbrella increases the likelihood of coherent, enforceable standards across the whole chain.
What next?
The GCA’s move to Defra is a strong signal that government now recognises the need for joined up oversight of supply chain fairness, from milk contracts to supermarket shelves. It is essential that this move is underpinned by knowledge sharing and learning between the two adjudicators, they must be in constant communication with one another.
But for Fair Dealing to succeed, two things are essential that there both the GCA and ASCA need to be able to identify patterns of poor practice, share intelligence, and strengthen enforcement where needed. But achieving this will require:
- continued engagement with sectors as new FDOs are developed,
- and a regulatory culture that supports open communication rather than replacing it.