This sector is projected to register a CAGR of 3.02% During the Forecast Period, 2021-2025. There were times during 2020/2021 when the entire industry came to a staggering halt. However, some restaurants remained open for delivery and takeaway.
Challenges and issues that will come under the microscope in the UK Food Supply Chains 2022+. Insufficient capacity in domestic food production, just-in-time supply chains and Brexit-related labour market challenges have weakened the UK’s food system.
Farming in the Future
The perfect storm, which is seeing a shortage of workers bringing to a halt the UK’s just-in-time supply chains in some places, as well as rising inflation adding increased costs to farms, against a backdrop of disrupted trade flows and a fierce retail price war, is causing huge challenges for people trying to run effective farm businesses.
UK Gov Food & Drinks Council
The Department for Business Energy & Industrial Stategy (BEIS) set out a broad overview of Build Back better: Our Plan for Growth. BEIS outlined the three pillars of the Plan for Growth – infrastructure, skills and innovation. The three priorities underpinning the plan are levelling up, net zero emissions and Global Britain.
Trade and Agriculture Commission (TAC)
Tim Smith, Chair of TAC, emphasised that Agri-trade had to fit into national food policy, and that it was important to link into the work being undertaken by Henry Dimbleby in the National Food Strategy Independent Review. Tim outlined that his report had highlighted the importance of maintaining the UKs high food standards, but how this could potentially pose problems when liberalising trade.
The recommendations set out in the report are ambitious, but realistic, and have been ‘stress tested’ with industry. The recommendations need to be acted upon collectively, not piecemeal.
Henry Dimbleby echoed members sentiments on the TAC report and highlighted the recommendation from the TAC report calling for lower import tariffs for goods meeting UK food standards as being key. Henry emphasised that all the recommendations from part 1 of the National Food Strategy report are being addressed, with one exception. Part 2 will diagnose the negative feedback loops contained within the food industry and will set out policy recommendations to address them.
Update from Transition Group
Nicolas Saphir called attention to the need for the food and drink sector to make better use of evidence, data and analysis. Using data would enable the industry to identify growth export opportunities in existing/new markets and would improve the share of the domestic market. Better use of data would also address vulnerabilities and assessment of collective and individual productivity gains throughout the supply chain. On environmental sustainability, it has been shown that the costs of this are recoverable, and that we need to find ways of incentivising sustainability.
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