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As the ramifications of the ongoing war in Iran ripple through global agricultural supply chains, millions of smallholder farmers providing essential goods to the UK are facing unprecedented challenges. With the British government failing to deliver on promised supply chain regulations aimed at safeguarding these producers, campaigners are sounding the alarm over the dire circumstances that many are now enduring.
Government Delays Raise Concerns
The UK government is under fire for its failure to announce crucial supply chain oversight regulations that were expected by the end of March. This delay comes amidst an escalating climate crisis and the geopolitical turmoil stemming from the Iran conflict, both of which are placing enormous pressures on farmers worldwide. Critics are branding the government as “missing in action” for not advancing plans that could significantly alter the environmental and human rights impact of UK businesses abroad.
As part of its Trade Strategy unveiled last year, the government initiated a review into responsible business practices, focusing on the supply chains of UK-based companies. However, the anticipated legislation, which advocates for mandatory human rights and environmental due diligence (HREDD), has yet to materialise. This law would compel businesses to critically assess and rectify issues within their supply chains, safeguarding the welfare of farmers and the environment.
Sophia Ostler, senior policy manager at the Fairtrade Foundation, expressed frustration over the government’s inaction. “Having promised they would share their views on it in March, the Government currently seems to be missing in action when it comes to pushing through this vital piece of legislation,” she stated. The urgency for such reforms grows as smallholder farmers are increasingly squeezed by rising costs and conflict-driven disruptions.
The Impact of War and Climate Change
Farmers from various regions, including tea producers in Kenya and coffee growers in Mexico, are feeling the double blow of soaring production costs exacerbated by both the Iran war and climate change. Martin Rhodes, Labour MP for Glasgow North, emphasised the need for reform in supply chain legislation, especially as UK aid to developing nations diminishes. He noted, “With the reductions in official development assistance by the UK and globally, and the ongoing climate emergency, we should be viewing ethical trade as a cost-effective way to put our principles into practice.”
The Fairtrade Foundation has documented alarming impacts linked to the Iranian conflict, revealing that the price of a 50kg bag of fertiliser in Kenya has surged from 3,500 Kenyan Shillings (£20) to 6,500 (£37). Additionally, transportation costs for flowers from East Africa have tripled, and many farmers are struggling to access critical inputs. A cooperative in Côte d’Ivoire reported that over 70% of its members are currently unable to obtain the necessary resources for the upcoming planting season.
Farmers Speak Out
Silvia Herrera, a small-scale coffee farmer from Mexico, has witnessed firsthand the detrimental effects of rising costs and erratic weather patterns on her livelihood. “Our cost of transport is up 50% since the War began,” she recounted, highlighting the financial strain on her operations. Over the last decade, shifting rainfall patterns and increased instances of extreme weather have disrupted her farming schedules and threatened her yields.
Last year, for example, half of Herrera’s coffee harvest was lost due to insufficient rainfall, which caused the beans to ripen incorrectly. “We have also seen more fires in recent years that threaten many farmers,” she lamented, adding that landslides have further jeopardised their crops and infrastructure. Campaigners argue that robust HREDD legislation could help level the playing field for farmers like Herrera, ensuring fair compensation and sustainable practices across the board.
Climate Finance: A Critical Shortfall
Despite the pressing need for climate finance to assist farmers in adapting to these challenges, access remains a significant hurdle. Herrera noted the difficulty in securing funds mandated by the Paris Agreement, particularly for marginalized groups such as women and indigenous peoples. “It is harder for us to have those documents or even the safe room to participate and bring our thoughts,” she explained.
While some funding has been directed towards farmers in her region, Herrera stressed that the amount is insufficient to meet the scale of the crisis. The support she receives as a Fairtrade producer has been vital, enabling her to invest in new tools and diversify her crops, but the ongoing challenges are immense.
The UK government recently announced a reduction in overall climate finance from its aid budget, although Development Minister Jenny Chapman has reassured that the UK aims to increase its climate finance provision year-on-year by harnessing more private capital.
Why it Matters
The failure to implement timely supply chain regulations not only jeopardises the livelihoods of millions of farmers globally but also undermines the UK’s commitments to ethical trade and human rights. As climate change continues to escalate and geopolitical conflicts disrupt vital supply chains, the need for robust legislation has never been more critical. Without a proactive approach, the UK risks perpetuating cycles of poverty and exploitation among the very producers who sustain its economy and food systems.
