Food and drink manufacturing is the UK’s largest manufacturing
sector, contributing £28.2 billion to the economy annually. In
2018, food and drink exports were worth £22.6 billion. Trade is
therefore vital for the food and farming industries. This inquiry
explored whether enough was being done to promote British food
and drink, at home and abroad.
While progress is being made in some areas, we are concerned that
the Government is not being ambitious or strategic enough in its
approach to marketing and export activities. The food and drink
industry has recognised what needs to be done to increase export
activities via its proposed Food and Drink Manufacturing Sector
Deal. The Government should approve this Sector Deal immediately
and confirm a timetable for its implementation.
Food labelling
Research shows that while origin is important to some British
consumers, purchasing behaviour is primarily driven by price. The
origin of food can be found on the label, but less often for
processed food.
The Government should introduce requirements for the origin of
characterising ingredients in processed foods to be specified on
labels – for example, the origin of the poultry in a chicken
curry. This would enable those consumers who prefer to buy
British to make informed choice.
Geographical Indications
Geographical Indications (GIs) provide legal protection against
unlawful imitation of protected food and drink products. They
also confer a price premium on products, making GIs both
economically important as well as a recognised indicator of
origin.
Given the potential for the UK to leave the EU without a deal in
October, the Government should ensure that the domestic GI system
meets the criteria required for EU approval and is ready prior to
exit, to minimise disruption to British exporters. This Report
recommends the Government make seeking a reciprocal agreement
with the EU on GIs a priority, especially if agreeing an
overarching withdrawal agreement is not possible.
Tradeshow Access Programmes
The Government’s Tradeshow Access Programme (TAP) provides
businesses with support they need to attend trade shows abroad.
It is seen by the industry as an important way for companies,
particularly small and medium-sized enterprises (SMEs), to
promote their businesses and break into new markets. The
Committee therefore welcome the increased focus on SME
participation in TAP.
However, TAP spend on food and drink has declined by 10 per cent
since 2017/18. This dip
reflects an ongoing trend of
decreased funding. In addition, the rules on accessing grants
have become more restrictive. The Tradeshow Access Programme
should be reviewed urgently, in consultation with industry and
trade associations. Funding should be potentially increased as
part of the upcoming Spending Review.
International awareness
Awareness of British food and drink is low in international
markets. More research is required to work out the best ways to
promote British products overseas and increase exposure to
British food. Recognising this gap, the Agriculture and
Horticulture Development Board (AHDB) has made commendable
efforts to provide international market intelligence. The AHDB
currently conducts market research across both domestic and
international markets.
It is not clear if this dual responsibility is the most effective
arrangement. The current review of the AHDB should consider
whether the balance of funding between domestic and international
market intelligence and promotion is fit for the future. AHDB
should also assess if more needs to be done to promote to the
domestic market.
MP, the Chair of the
Environment, Food and Rural Affairs Committee, said:
“Trade remains an integral part of the UK economy. Our food and
farming industry generates hundreds of billions a year and
employs one in eight people. Given the uncertainty of Brexit, it
is absolutely essential that the Government takes steps to
build Britain’s global brand for food and drink.
“What the current approach to marketing and export is really
lacking is enough ambition or strategic thinking – the Government
cannot afford to be complacent at a time of such grave importance
to the sector.
“Those working in the sector have clearly recognised what needs
to be done to increase export activities in the proposed Food and
Drink Manufacturing Sector Deal. We must see the Government work
closely with the industry to promote our food and drink
excellence around the world.
“As our Report states, market access and increasing exports do
not happen overnight, and action must be taken urgently.”
