Ministers shift grocery regulator to Defra to strengthen farmer protections

A major shake-up of grocery regulation will bring the UK’s watchdog closer to the farm gate this summer, as ministers seek to tighten oversight of retailer–supplier relations and address long-standing concerns over fairness in the food chain.

Responsibility for the Groceries Code Adjudicator (GCA) will move from the Department for Business and Trade to Defra on 1 July 2026, a shift the government says will better align regulation with agricultural policy and improve coordination across the sector.

The move follows a central recommendation from Baroness Minette Batters’ Farming Profitability Review, which called for more streamlined oversight of the grocery supply chain and stronger links between regulators.

In practical terms, the change is aimed at tackling persistent issues faced by suppliers — including pressure from large retailers, delayed payments and last-minute contract changes — which have long been raised by farmers and producers.

Farming Minister Dame Angela Eagle said the government is “backing our farmers by creating a level playing field right across the supply chain to ensure productive and profitable businesses can flourish”.

She added the transfer would “support a more joined-up approach to fairness across the food supply chain”, while maintaining the watchdog’s independence.

The GCA will now sit alongside Defra’s broader food and farming remit, with closer ties expected to the Agricultural Supply Chain Adjudicator as part of a more coordinated regulatory framework.

Mark White, the Groceries Code Adjudicator, welcomed the shift, saying he was “looking forward to working more closely with Defra to continue to ensure fair treatment of direct suppliers to the designated retailers”.

The regulator oversees the relationship between the UK’s largest supermarkets and their direct suppliers, enforcing the Groceries Supply Code of Practice.

While ministers insist the body will remain fully independent — with no changes to its statutory powers and the code still overseen by the Competition and Markets Authority — some in the sector have previously questioned whether enforcement goes far enough to deter poor practice.

The transfer builds on wider government action to improve transparency and trading conditions in the food sector, including the introduction of Fair Dealing rules for dairy and pig producers.

Further detail on how the transition will operate is expected ahead of July, with industry watching closely to see whether closer alignment with Defra translates into stronger protections for suppliers.