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The plight of millions of smallholder farmers around the globe, who are integral to the UK’s supply chains, has intensified due to climate change and the ongoing conflict in Iran. As these producers struggle to adapt, the UK government has faced criticism for failing to meet a crucial deadline for the introduction of supply chain oversight regulations designed to bolster environmental and human rights standards. This delay leaves farmers vulnerable at a time when they desperately need support.
Government Under Fire for Inaction
Campaigners have labelled the UK government “missing in action” after it neglected to announce the outcomes of a significant review into responsible business conduct, initially expected at the end of March. This review is part of the UK’s Trade Strategy, which aims to improve the sustainability of supply chains linked to UK businesses. Advocates for a mandatory human rights and environmental due diligence (HREDD) law argue that such legislation is essential for holding companies accountable and ensuring fair treatment for producers.
In recent years, global supply chains have demonstrated alarming fragility, with disruptions caused by the COVID-19 pandemic, geopolitical tensions such as Russia’s invasion of Ukraine, and the escalating climate crisis. These factors have led to soaring food and energy prices, disproportionately affecting farmers in developing nations who supply the UK market. The lack of robust oversight not only risks human rights violations but also exacerbates environmental degradation, leaving farmers increasingly at the mercy of unpredictable climate patterns.
According to Sophia Ostler, senior policy manager at the Fairtrade Foundation, the government’s inaction is particularly concerning. “Having promised to share their views in March, the Government currently seems to be missing in action when it comes to pushing through this vital piece of legislation,” she stated. Ostler emphasised the urgency of the situation: “The impacts of the War in Iran and the closure of the Strait of Hormuz, which have sent energy and fertiliser costs soaring, make the need for such legislation more pressing than ever.”
The Human Cost of Conflict and Climate Change
The ramifications of the Iran war are being felt acutely across multiple agricultural sectors. For instance, the cost of a 50kg bag of fertiliser in Kenya—home to the UK’s leading tea supply—has surged from 3,500 Kenyan Shillings (£20) to 6,500 (£37). Furthermore, freight costs for transporting flowers from East Africa have tripled, creating dire financial pressures on producers.
Silvia Herrera, a small-scale coffee farmer from Mexico, shared her harrowing experience of how escalating costs, driven by the war and climate impacts, have made it increasingly difficult to sustain her operations. “Our cost of transport has risen by 50% since the war began,” she explained. The shifting weather patterns have also disrupted traditional farming schedules, further complicating her ability to manage production effectively.
Herrera highlighted the increased frequency of droughts and heavy rainfall, which have devastated crops and infrastructure. “Last year, half of my harvest was lost because it did not rain enough for the beans to ripen,” she lamented. These challenges underscore the urgent need for comprehensive supply chain regulations that can help mitigate such risks for farmers.
The Case for HREDD Legislation
Despite the government’s stated commitment to address human rights abuses and environmental exploitation, the lack of decisive action on HREDD has left many in the agricultural sector feeling abandoned. Martin Rhodes, Labour MP for Glasgow North, has called for immediate reform of supply chain laws to ensure the UK maintains a positive impact on global development, particularly in light of recent cuts to aid.
“Ethical trade through mandatory HREDD is a cost-effective way to uphold our principles,” Rhodes asserted. The current situation places immense pressure on farmers who are already contending with rising input costs due to conflict-driven trade disruptions and climate shocks. As Ostler noted, “While we await stronger regulation, many businesses continue to exert downward pressure on producers, compromising fair compensation.”
The potential impact of HREDD legislation could be transformative. It would not only level the playing field for businesses that adhere to ethical practices but also establish a norm of living wages for farmers, fundamentally altering the dynamics of global trade.
Access to Climate Finance Remains Elusive
Access to climate finance, a critical component for farmers seeking to adapt to climate change, remains a significant barrier. Herrera pointed out that while some funds have been made available from the German government, the application process is arduous and insufficient to meet the scale of the challenges faced by farmers. “It is harder for us to access the necessary resources due to land rights and documentation issues,” she explained.
In contrast, UK development minister Jenny Chapman has indicated that despite cuts to the overall climate finance provision, the government plans to increase its offerings year-on-year by leveraging private capital. However, the effectiveness of this approach remains to be seen, especially for marginalized groups within the agricultural sector.
Why it Matters
The ongoing crises stemming from the Iran war and climate change highlight the urgent need for robust supply chain regulations in the UK. By failing to act, the government not only jeopardises the livelihoods of millions of smallholder farmers but also undermines its own ethical commitments to human rights and environmental sustainability. Implementing a mandatory HREDD law could empower producers, ensure fair compensation, and foster resilience against future shocks, ultimately contributing to a more sustainable and equitable global supply chain. The time for action is now.
