UK think tank Policy Exchange has revealed that over half of food and drink manufacturers think mitigating supply chain risks is a “significant concern” for their business, as it urges the Government to prioritise food security.
The report argued that investment in the food and drink manufacturing sector has dropped by 30% since 2019 – despite an estimated industry turnover of £142 billion, as well as providing exports valued at over £24 billion. It said this compares to overall UK manufacturing (excluding food and drink) where investment rose by 5% over the same period.
It highlighted an “inconsistent approach” to industrial strategy and a regulatory environment that is “often costly, overlapping and uncertain”, which it said had “hindered efforts to attract investment”. As well as this, it found that previously food security initiatives “focused too narrowly” on agriculture.
The report also emphasised the “importance of the global dimension”, rejecting the position that the UK should be self-sufficient in food production. It called this an “unrealistic aim which would be both unachievable and counterproductive”, and argued food security could be enhanced through a “flexible, agile and robust” trading ecosystem, with robust supply chains.
It said the supply chain would benefit from a “reorientation” of its international aid spending to support global food security.
Suggested changes to industry
Recommendations were made across areas including investment, innovation, regulation and international trade, including:
- The development of a National Food Security Strategy that encompasses the entire food ecosystem, which would be overseen by a Cabinet Committee or Ministerial working group.
- Including food manufacturing, logistics, wholesale, retail and hospitality in the available Government programmes, policies and funding opportunities.
- Fast-tracking approvals for any product that has already been approved by trusted regulatory regimes in countries outside of the UK to allow more “rapid approval” of low-risk products and to free up resources for other applications.
- The chance for food suppliers to modify their inputs during periods of geopolitical disruption, as well as the temporary relaxation of tariffs and other trade restrictions on specific goods during another disruption.
- Focusing on strengthening global food security as part of the UK’s development spend.
- An independent review of regulation across the food ecosystem, to “ensure streamlining, proportionality and reduce unintended consequences”, with a focus on outcomes rather than process.
Sharon Hodgson MP, former Shadow Minister for Public Health and former vice chair of the Food and Drink APPG, said: “I welcome this timely new Policy Exchange report. Food security is one of the major challenges policymakers currently face, and the most vulnerable in our society are those who suffer the most. I particularly welcome the focus on innovation to combat food waste, something which I have frequently championed and supported. I urge the Government to carefully take note of the important recommendations contained within this paper.”
“The UK has a highly sophisticated food system, which supports everyone’s daily lives by providing a wide range of affordable, safe and nutritious food and drink. But we must not take it for granted.”
CEO of the Food and Drink Federation, Karen Betts, said: “We welcome this insightful report from the Policy Exchange, which rightly puts food and drink at the heart of Whitehall policymaking. The UK has a highly sophisticated food system, which supports everyone’s daily lives by providing a wide range of affordable, safe and nutritious food and drink. But we must not take it for granted.
“Challenges lie ahead which need investment if our food system is to remain secure – from the innovation needed to tackle climate change, raise productivity, and invest in new products, to keeping prices fair for suppliers and consumers, and ensuring the UK strikes the right balance between domestic production and trade. Taking the right policy decisions now, weighed across Whitehall departments and as recommended by Policy Exchange, will lay the foundations for UK food security into the future.”
“Strengthening food security must be a national economic priority along with defence and energy security.”
George Weston, chair of Associated British Foods plc, said: “This report from Policy Exchange highlights the vital importance of food manufacturing to both food security and the UK economy and the key role that the sector plays in ensuring that our food is safe, nutritious and affordable. Associated British Foods believes that a pro-growth environment needs to be fostered thereby enabling the UK’s food and farming sector to decarbonise while simultaneously stimulating UK growth and investment, jobs and exports.”
Dame Fiona Kendrick DBE, former chair and CEO of Nestlé UK and Ireland, said: “Strengthening UK food security must be a national economic priority along with defence and energy security. Against the backdrop of increased geo-political instability and climate change, we cannot assume that our food system will always withstand shocks. The UK Government should take forward these specific recommendations, including the development of a National Food Security Strategy, in collaboration with the entire food value chain to deliver a more secure and resilient food system that invests for the future.”
Baroness Bakewell of Hardington Mandeville MBE, Liberal Democrat Lords spokesperson for Environment, Food and Rural Affairs, commented: “As this Policy Exchange report sets out, food production and food security are vital to the country. Cultivating supply chains that are resilient to climate-change related events will be more important than ever, and we can see from the conflicts around the world that a secure supply of food is critical. I welcome this timely intervention, and I hope it encourages an ever-increasing focus on this crucial topic.”
