Orkney and Shetland MP Alistair Carmichael has called for the Groceries Code Adjudicator (GCA) to ‘step up’ and support farmers and crofters.

Leading a debate at Westminster on the GCA which oversees the relationship between farmers and supermarkets, the Lib Dem MP called for changes to the organisation, adding that farmers are caught in a ‘pincer of high input costs and depressed produce prices’.

Mr Carmichael said one issue with the GCA is that it misses out on the early parts of the supply chain and does not cover producers who supply processors, or smaller retailers.

He also called for increased funding for the organisation: “It is difficult to see how we can possibly hope for an adjudicator to exercise meaningful control over the big supermarkets—who, incidentally, fund its operation through a levy—if the cost of a single investigation is greater than its annual budget.”

Responding for the government, trade minister Kevin Hollinrake acknowledged the pressure farmers are under.

He said: “Despite the GCA’s effectiveness and successful interventionist approach, we have not yet stamped out all unfair practices.”

“We are aware that some poor practices are affecting producers across several agricultural sectors not covered by the code and that primary producers, such as farmers, have felt unfairly treated.

The government also want farmers to get a fair price for their products and we are committed to tackling contractual unfairness that can exist in the agrifood supply chain.”

Speaking after the debate, Mr Carmichael said: “I have been encouraged by discussions with colleagues in parliament over recent days on improving farmgate prices.

“There is clearly a consensus across the parties that the relationship between farmers and food producers and the major supermarket chains has to be rebalanced. It is now for ministers to act on that consensus.

“The Groceries Code Adjudicator was a welcome step when we delivered it but now we must go further.

“I hope that by holding a debate such as the one today we can get a little more haste from the government because the situation is not going to get any better without their action. The minister is right when he says that parts of the system are broken and the market alone is clearly not going to solve this issue.”