UK: Food and Drink Federation’s Five-Point Manifesto for New Government

04 May 2017 --- As speculation continues over exactly what Brexit will mean in terms of trade deals, tariffs, border controls and a range of other concerns, the UK’s Food and Drink Federation (FDF) has put forward five key policies it believes the next government should implement so food and farming sectors thrive on an international scale.

Contributing £28.2 billion (US$36.2 billion) to the economy annually and employing more than 400,000 people throughout Britain, the food and drink industry is the largest manufacturing sector in the UK. 

Discussing the launch of the manifesto, FDF Director General Ian Wright CBE said: “The next six weeks are the pivotal time for the food and drink industry to make its case to those who aspire to form the next Government - a Government which will lead us through Brexit negotiations and the uncertain period that follows.”

“Food is a matter of national security. Food and farming is the sector most impacted by exiting the EU. It is imperative that the new Government recognize this, and the importance of the food and drink industry in relation to the success of the wider UK economy.

“We urge policymakers and candidates of all parties to join us in our shared mission: to continue to provide consumers with safe, affordable and nutritious food and drink and unlock our growth and productivity potential.”

The first of the five policies is to secure the best possible Brexit for food and drink, including a transition phase to avoid any "cliff edge" scenario. 

“Food and farming is the sector most impacted by Brexit. Whether it is access to future workforce, the shape of the regulatory regime, our trading relationships, or the all-Ireland agri-food supply chain, the long-term future for UK food and drink is dependent on the deal the next Government secures,” says the FDF. 

“Currency fluctuation has already squeezed many producers, with over 90% of FDF members reporting price rises for essential ingredients and raw materials in our recent survey. As essential partners to the UK's farmers, primary producers and fishing industry, we are also reliant on a stable and sustainable domestic supply base.”

FDF says the industry is ready to seize new opportunities in exports and domestic sourcing but if Britain was to return to  World Trade Organization (WTO) rules for trading with the EU, then food and drink exports imports would face significantly higher tariffs. 

Secondly, FDF wants the new government to work in partnership with industry to tackle obesity through an holistic, evidence-based approach, with calorie reduction at its heart.

FDF agrees with dietitians that it is wrong to focus on one single nutrient or ingredient and that we must look for a 'whole diet and lifestyle' solution. The emphasis should be on calories, as undue focus on any one nutrient risks misleading the consumer, says FDF and the next Government should also champion the role of appropriate portion sizing, shifting marketing investment behind healthier options and methods to drive behavior change among consumers.

Reformulation takes time, involves technical challenges and incurs great costs. The next Government should fund pre-competitive research through the Research Councils with world leading UK universities and improve technology transfer through funding of commercialization initiatives, such as those supported by Innovate UK, according to FDF. This will help keep new product prices competitive, ensuring these are truly affordable to all and helping to alleviate health inequalities.

New Opportunities
FDF wants the new government to turbo charge sector-specific exports to help smaller firms take advantage of new opportunities.

“With only 20 percent of food and drink manufacturers actively exporting, we know there is huge untapped potential among SMEs to meet rising demand. We are looking for the next Government to work with us so our firms are ready to take advantage of growing demand, including new opportunities in non-EU countries. This can help prepare the UK's wider food chain for a more competitive future outside the CAP,” says FDF.

However, the FDF says the biggest barrier to exploiting this potential is the fragmentation of specialist export support in the UK. SMEs in other countries typically benefit from more generous sector-specific support, with a single point of contact making support easier to access and so it is calling on the new Government to work in partnership with industry to scale-up its provision of specialist export support in food and drink to take advantage of increased demand for UK products overseas and the opportunities that leaving the EU is expected to create.

Another point from the FDF is for more support for its ambition for an industrial strategy sector deal which drives transformational industry growth, so the industry can continue to provide consumers with great choice and quality products.

Specifically the FDF wants the new government to work with food chain partners to deliver a safe, secure, affordable, resilient and sustainable food chain for now and for future generations, including support to grow a more competitive and productive supply base, delivering resource efficiency, quality and traceability from farm to fork.

And finally, the FDF wants to work with government to develop home-grown talent, boost skills and apprenticeships and believes the next government must commit to long-term investment in skills and apprenticeships so the UK remains the destination of choice for multinational food and drink manufacturers.

The UK food and drink industry faces a looming skills gap due to demographic change, compounded by the uncertainty that a new immigration policy may put at risk the UK’s valued EU workforce, and leave the sector with an immediate skills gap. Over a third of the food and drink workforce is set to retire by 2024 and the industry will need 140,000 new recruits to fill this looming shortage. 

“UK food and drink manufacturers, like the rest of the agri-food supply chain, have benefited from bringing in labor from the EU. Almost a third (29 per cent) of our workforce are EU nationals, with a high percentage carrying out vital production, technical and specialist roles,” says FDF. 

It wants government to deliver co-ordinated careers action and a more strategic approach to engage with schools in order to encourage home-grown talent to replace the ageing workforce and helping to reduce reliance on EU national workers in the longer-term.