Food price cap talks spark farming backlash

Farming and retail leaders have reacted angrily to reports the UK government has discussed voluntary supermarket price caps on staple foods such as bread, eggs and milk amid mounting cost-of-living pressures.

The idea has surfaced alongside similar policy proposals in Scotland.

The ruling SNP government has vowed to introduce caps on essential foods, intensifying industry concern about state intervention in food pricing.

See also: Food security overhaul urged as volatility is ‘new norm’

Although Treasury ministers later insisted that mandatory caps were not being considered, the proposals are understood to have involved discussions with major retailers about limiting prices in exchange for regulatory concessions, including packaging policies and changes to the rules around healthy food.

Farmers warn the approach risks squeezing primary producers already under pressure from rising costs.

The Food and Drink Federation estimates food inflation could climb by almost 10% by the end of the year due to the Iran war.

Staffordshire arable farmer Clive Bailye said supermarkets and processors would protect their own margins first.

“The supermarkets protect their margins, the processors protect theirs, and the squeeze gets pushed straight back onto farmers,” he wrote on X.

“Not a penny off billions in supermarket profits, but another cut for the people producing the food.”

He argued that government should instead focus on securing domestic food production, fertiliser and energy supplies.

“But that would require understanding that food comes from farms, not supermarkets,” he added.

Egg sector warning

The egg sector also warned family farms could not absorb further pressure.

British Free Range Egg Producers Association chairman James Baxter said producers were already facing rising labour, feed and energy costs, alongside wider geopolitical pressures.

“Family farms cannot continue to absorb rising costs such as labour, feed and energy,” he said.

“Family businesses cannot be expected to carry the cost of keeping consumer shopping prices artificially low.”

He added that removing lower-cost production systems would risk reducing affordability for consumers.

Retail leaders have also pushed back strongly.

The British Retail Consortium, which represents UK retailers, warned that introducing “1970s style price controls” could force retailers to sell goods at a loss.

Stuart Machin, chief executive of M&S, called the proposals “completely preposterous” and urged ministers to focus on the tax and regulatory burden instead.

Treasury response

The Treasury told Farmers Weekly the government is engaging with supermarkets as part of wider efforts to ease cost pressures on households.

A spokesman said: “The chancellor has been clear we want to do more to help keep costs down for families and will set out more detail in due course.”

However, Treasury secretary Dan Tomlinson ruled out mandatory price caps, telling the BBC: “This isn’t something we’re looking at.”