The Government is being urged to put food security at the centre of its strategy to boost the UK’s economic growth.
The Policy Exchange think tank called for a national food security strategy that encompasses the entire food ecosystem beyond farming, as it released a report on the issue, backed by a cross-party group of MPs and peers.
It comes after years of high food price inflation and supply chains disrupted by the Covid-19 pandemic, the war in Ukraine and the impacts of climate change.
Polling of food and drink manufacturers, carried out on behalf of the think tank, found that more than half (53 per cent) think mitigating supply chain risks is a significant concern for their business. The survey by the Food and Drink Federation trade body showed the top three actions businesses are taking to mitigate that risk include diversifying suppliers (68 per cent), adapting or simplifying supply chains (50 per cent) or investing in product innovation (38 per cent).
The survey found 56 per cent of large suppliers are increasing stockpiles while 54 per cent of small and medium-sized enterprises (SMEs) are increasing the share of UK inputs in their supply chain.
It said previous food security initiatives have focused too narrowly on agriculture and that plans should include all areas of the food ecosystem – such as food manufacturing, logistics and retail – in order to keep products on shelves and prices down.
Investment in the food and drink manufacturing sector has dropped by 30 per cent since 2019, the report said, adding that this is despite an estimated industry turnover of £142 billion and exports valued at more than £24 billion. In comparison, UK manufacturing excluding food and drink saw investment rise by 5 per cent over the same period, the paper said.
It also warned that an inconsistent approach to industrial strategy – where the food sector has often been overlooked – and a regulatory environment that is often costly, overlapping and uncertain have also hindered efforts to attract investment.
In response to these findings, the think tank outlined key recommendations to ensure UK food security.
This included the development of a new food security transformation fund focusing on technology investment and a fast-track approval process for products that have been approved by trusted regulatory regimes in other countries.
Policy Exchange also said the Government should introduce a new contingency framework for major food supply crises, to allow food suppliers to modify their inputs during periods of geopolitical disruption.
The think tank said that though British farming is essential to food security, it rejected the position that the country should be self-sufficient in food production, calling it an “aim of which pursuit would be both unachievable and counterproductive”.
Instead, it argues food security can be enhanced through a a flexible, agile and robust trading ecosystem, with robust supply chains and a reorientation of the UK’s international aid spending to support global food security.
Policy Exchange added that the Foreign Office should make strengthening global food security an increasing focus of the UK’s development spend.
Supporting the report, Labour MP Sharon Hodgson said, “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 urge the Government to carefully take note of the important recommendations contained within this paper.”
Liberal Democrat peer Baroness Bakewell said, “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.”
Tory MP Wendy Morton said, “Against a backdrop of global uncertainties, we must as a country take seriously the need to tackle both the availability and affordability of our food. The report places a welcome emphasis on the way a more holistic prioritisation of the food ecosystem would help to support UK farmers and domestic food production.”
George Weston, chairman of Associated British Foods, said the firm “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, former chairwoman and chief executive of Nestle UK and Ireland, said, “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.”
A Government spokesperson said: “Food security is national security. That is why the new Government will restore stability and confidence in the sector by introducing a new deal for farmers to boost rural economic growth and strengthen food security.
“We will protect farmers from being undercut in trade deals, make the supply chain work more fairly, prevent shock rises in bills by switching on GB Energy, better protect them from flooding through a new Flood Resilience Taskforce and setting a target for half of all food purchased across the public sector to be locally produced or certified to higher environmental standards.
