Food and Drink Federation (FDF) director general, Melanie Leech, said a more coherent strategy for the UK food industry was required to help it deal with the major issues facing the globe, and the UK in particular. But, despite recent improvement, the way the government dealt with the sector was still missing a huge opportunity, said Leech.
Different priorities from government departments such as the Department for Environment Food and Rural Affairs (DEFRA), the Department of Health (DoH) and the Department for Business, Innovation and Skills (BIS) were holding manufacturers back from delivering the faster economic growth that they were capable of, she said.
Something missing
“Where is the strategy that will drive [future needs] within the UK as part of the global context? asked Leech, “Because DEFRA can’t do it alone. It has to have real buy-in from other parts of government and that is something that we think is missing – that sort of connectivity across government; that joined up focus.”
If the government’s overarching strategy is rebalancing of the economy, then it makes sense to help food and drink – the UK’s biggest manufacturing sector –to play its part in delivering that, added Jim Moseley, FDF president and md of General Mills UK and Ireland. “I don’t think, as an industry, that is the message we get,” he said. “We are working on so many different areas that don’t necessarily drive growth. And I don’t think we are necessarily incentivised or rewarded to drive growth.”
Leech reported that food and drink was outperforming most other manufacturing sectors in the UK, with Office for National Statistics data showing a 0.5% increase in June 2011 compared with the same period last year. It was also expected to deliver its seventh year of record exports, topping £11bn, she added.
“It would be good if we could see UK food and drink contributing even more to the rebalancing of the economy,” added Moseley. “The FDF has commissioned a ‘lighthouse project’ with Grant Thornton to look at how the food and drink industry can grow faster than it is and have sustainable growth.” The initial results of this work are expected to be published in early December. “Coming out of that project will be an agenda to drive faster growth,” he added. “We could probably expect more from the government in terms of encouraging our export business.”
Smaller firms
Jonathan Bye, md of Vimto Soft Drinks and chairman of the FDF’s small- and medium-sized enterprise (SME) forum also called for more help for smaller firms. SMEs make up the vast majority of the 7,000 UK companies in the sector.
In particular, they needed assistance in accessing finance to help them innovate, automate and grow. “When you are in a smaller business you are sometimes not even aware the funding is out there – never mind the time or ability to get it,” said Bye. They also needed the burden of regulation – such as employment law – to be reduced, he added.
For more information about the opportunities and challenges affecting SME food and beverage manufacturers, book your free place at Food Manufacture’s SME Business Leaders' Round Table. The half-day event will take place at legal specialist Eversheds’ Leeds office on November 29. Click here for more details, telephone 01293 610231 or email foodmanevents@wrbm.com.