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Farming

Horticulture sector needs support

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£8 billion: Trade gap with the EU on fruit and veg

£8 billion: Trade gap with the EU on fruit and veg

A NEW REPORT from the inter-university Food Research Collaboration (FRC) shows the weak state of British fruit and vegetable production and urges policy-makers to give more attention to rebuilding UK horticulture.

According to the briefing paper, strengthening the sector would both reduce the food trade gap and benefit public health.

This is a practical issue which cuts across the current Brexit vs Bremain debate, according to Professor Tim Lang, of City University London, and FRC Research Fellow Dr Victoria Schoen.

The pair argue that horticulture ought to be central in the Government’s forthcoming 25- year food and farming plan, which is understood to commit to increasing food exports to pay for the huge £8 billion food import deficit.

In a statement on the report’s release, Co-authors Professor Lang and Dr Schoen said; “We worry that government strategy looks a bit like allowing Europe to feed the UK with good healthy produce – fruit and veg – while our food industry exports less desirable elements – alcohol and overprocessed, sugary, fatty foods.

“Actually, horticulture offers something relatively simple to improve matters. Grow more here, but make it sustainable production only.”

The report, Horticulture in the UK: potential for meeting dietary guideline demands, paints a sober picture of a mismatch between supply and demand in the UK, particularly in light of public health advice to eat more fruit and vegetables. Drawing on official and unpublished data, the report shows that there has been a big decline in the area given to UK horticultural production.

From 1985 to 2014, there has been a decline of 27% for fruit and vegetables combined. The area growing vegetables has declined by 26% and the area growing fruit by 35%. Fruit and vegetables are by far the greatest source of imports in the UK food system. The trade gap in horticulture has risen to £7.8 billion a year, about 37% of the UK’s total food trade gap of £21 billion in 2014.

Although some growers have extensive growing operations in Southern Europe and further afield, this makes sense for them as commercial enterprises but still does not resolve the serious lack of UK horticultural output.

Some imports (e.g. pineapples, avocados) cannot currently be grown in the UK but others which could be UK grown (e.g. brassicas, mushrooms, lettuce, apples, pears) have seen serious drops in production.

The proportion of the adult population (over 16 years) in the UK consuming five or more portions of fruit and vegetables per day peaked in 2006 at 28% of males and 32% of females.

Only 9% of 11-15 year olds achieved an intake of five-a-day or more in the period 2008/09-2011/12, and only 14% of 16-24 year olds.

The Consumer Price Index for food items as a whole has shown a significant increase of 35% in 2007-2013. Within this, the price of vegetables has increased by 27% and fresh fruit by 26%, less than the average for the food sector as a whole.

The researchers noted that horticulture holdings are unevenly distributed across the country, which they said is partly for climatic reasons, but pointed out that areas which used to have sizeable sectors (e.g. the South West) have seen a heavy decline.

They said a ‘re-boot’ of regional strategies is overdue a review of planning and financial regulations and improve resilience in food and farming.

Currently, only 3.5% of the UK’s croppable land is used for horticulture (and only 2% of the farmed area in England), but this land produces £3.7 billion worth of produce and employs 12% of the agricultural labour force and at least 35% of the UK’s casual farm labour force.

The paper’s authors made a number of recommendations for the government, which is set to bring out its 25 year food and farming plan in the spring. They urged the government to apply a ‘health lens’ to its proposed focus on ‘Brand Britain’ and to work with industry and regional groups to give policy and financial support for horticulture.

This funding should include public health and environmental analysis to look at narrowing the gap between supply and demand for home grown fruit and veg, the authors said, as well as funding more research into sustainable production methods.

Professor Tim Lang, Director of the Centre for Food Policy at City University London, and Chair of the FRC, commented on Thursday: “At a time when some politicians are urging the UK to vote to leave the EU, it is somewhat alarming to note the poor state of UK self-reliance in horticulture.

“This ought to be the ‘good news’ in food and health. Why is the country producing lots of sugar but not enough fruit and veg?

“We have been genuinely shocked by the mismatch of UK supply and demand in horticulture. Our report points out some weak links in the chain: low wages, reliance on migrant labour, a suspicion of low returns to growers, a waste of land and resources.

“These factors should receive more attention from academics and civil society. And politicians need to look very carefully at the sector. Dairy farmers have been understandably ‘noisy’ about being squeezed by rising costs and powerful supermarkets.

The public needs to be more aware of a not dissimilar situation in fruit and veg. “The public says it wants to eat British. Chefs encourage it. But the Government isn’t listening. Its message is more about exports than about growing more here. We think this risky.”

Dr Victoria Schoen, Research Fellow for the FRC, said: “We frequently hear the five-a-day message – many of us can see the reasoning for this. Why is it then that so few of us take any notice? What would happen to our supermarket fresh produce shelves if we did?

“We are eating slightly less fruit and veg per person than we did ten years ago but this is increasingly fruit and veg that are not grown here.

“It is time policy-makers considered the reasons for this and whether anything can be done to encourage consumption, and production, of British produce.

“British horticulture has contracted partly because of lack of demand for the things we grow here. A more thorough examination of the food systems in place is required to understand why products that should be more expensive – those that are highly processed – are often in greater demand than those that come to us in the fresh-from-the field state.”

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Farming

FUW welcomes new minister

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Minister for the Environment: Hannah Blythyn

THE FARMERS’ UNION OF WALES has welcomed the announcement in continuity in the Welsh Government, following the Cabinet reshuffle (Nov 3), which saw Lesley Griffiths continuing in her role as Cabinet Secretary for Energy, Planning and Rural Affairs, with the addition of a deputy, Hannah Blythyn as Minister for Environment.

Responding to the news, FUW President Glyn Roberts said: “We welcome the continuity of keeping Lesley Griffiths as our Cabinet Secretary. Our working relationship has been a positive one and we look forward to continue working with her.

“With issues such as climate change and water management dominating agendas such as those listed in the Well-being of Future Generations Act, we are pleased to see Mrs Griffiths will be able to continue to fight for the interests of our rural communities – communities for which agriculture is a cornerstone.

“We are also pleased to see that Hannah Blythyn has joined the Cabinet. The addition of a new Minister recognises the complexity of the portfolio and we look forward to working with Hannah in the context of her remit.

“We met with Lesley Griffiths last week and will now seek a meeting with Hannah Blythyn at the earliest opportunity, to discuss those issues which are of concern to farmers and have an impact on all aspects of her portfolio.”

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Farming

Commitment on funding welcomed

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Addressing NFU Cymru conference: Lesley Griffiths

NFU CYMRU has welcomed the Welsh Government reaffirming its commitment to ring-fence funding for Welsh farming post-Brexit.

Last week NFU Cymru met with Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths AM, and in a wide ranging discussion covering a range of topics, Brexit topped the agenda.

Following the meeting, NFU Cymru President Stephen James said: “I am pleased that in our meeting with the Cabinet Secretary, Lesley Griffiths AM, she reaffirmed the commitment from the First Minister that funding for Welsh agriculture from the UK Government to the Welsh Government will be ring-fenced for Welsh farmers post-Brexit.”

The Cabinet Secretary’s commitment follows on from a response that the First Minister gave to Plenary on October 24 and reaffirms the commitment in the Welsh Government / Plaid Cymru Securing Wales’ Future document which stated that it is ‘essential that equivalent or greater resources to those Wales would have received from the Common Agricultural Policy (CAP) are provided from the UK to support Welsh farming’.

Stephen James continued: “NFU Cymru’s message on future funding arrangements has been clear and unequivocal. Governments in Cardiff and Westminster must maintain current levels of investment for farming in Wales, to ensure Welsh farmers remain competitive and can continue to produce food to the highest standards whilst maintaining and enhancing our environment and meeting our climate change obligations.

“At Plenary, the First Minister mentioned that he would consider looking at alternate ways of working and we would absolutely agree with that. This is an opportunity for us in Wales to work collectively to create a new agricultural policy framework that helps to achieve our vision of a productive, progressive and profitable farming industry that delivers jobs, growth and investment for Wales.

“We see the development of a new policy framework as an evolution over a period of time, with the timeframe for change very much determined by our future trading relationship with the EU.

“With the UK Government having committed to the same cash total in funds for farm support until the end of this Parliament, the next step is for the UK Government to clarify how these funds will be allocated amongst the home nations. This allocation should be based on the current formula for distributing CAP funds within the UK.

“Farming is a long term business and we need clarity and certainty on a range of issues including funding, trade and future agricultural policy. Developing agricultural policy and budgetary frameworks should be developed in partnership between the governments of the UK, so that a common policy framework can be agreed. A common policy, but a policy which allows flexibility for each country to take account of the pattern and practice of farming within their country.”

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Farming

Family farms on the brink

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Under threat: Over 80% of small farms are struggling

FEWER than one in five family farms are making a profit from their farming activity, according to research undertaken by the Andersons Centre on behalf of The Prince’s Countryside Fund.

Analysis of data from 172 participants in the first year of The Prince’s Farm Resilience Programme has shown that the average farm made more than £20,000 loss from farming activities, and instead is reliant on other income streams to make a profit.

The shortfall was made up by income from non-farming activity, such as tourism enterprises, renewables, direct selling of products to the consumer, or income from working off farm as well as farm payments.

According to the report, broadly speaking, farmers face two business choices in order to cope with declining economic fortunes: either to focus on a farming solution or to redeploy resources away from agricultural production. In reality, it may be a combination of the two or farmers may vacillate between the two courses of action with periods of off-farm work generating income interspersed with a focus on the farm.

There are, of course, two further options open to farmers. First, they may cease farming, either entirely through selling up the farm or by letting their land. Or secondly, they might tighten the belt and continue business as usual.

Worryingly, many operators of small farms, believe the near future will see them retiring or otherwise leaving agriculture altogether.

Lord Curry of Kirkharle, chairman of The Prince’s Countryside Fund said: “Although the initial figure is startling, the research from the Andersons Centre shows that farmers are increasingly looking at their farms as a business, and are proactively looking for how they can generate an income from diversified sources to remain profitable.

“This is more crucial now than ever. Farmers must develop their skills and improve their business confidence to survive. If they do not, the risk of extinction for the family farm is very real; farmers must act now to both strengthen their core farming business and to spread the risk.

“The Prince’s Farm Resilience Programme is vital, because it equips farmers with the tools they need to remain financially stable. Maintaining diversity of farm size is essential to protect the British countryside and our rural communities.”

The Andersons Centre developed a bespoke and easy to use Business Health Check Tool for The Prince’s Farm Resilience Programme, allowing farmers on the programme to benchmark their performance, identify their strengths and weaknesses, and make informed business decisions as a result. Data from this tool was analysed to identify trends and performance in the farm businesses involved in the initiative.

The Prince’s Farm Resilience Programme aims to help 300 family farms, across 15 locations, each year. It brings together like minded family farm enterprises in local networks, to review their current activity and identify improvements and opportunities that can be made on-farm to build resilience, effectively helping farmers to take control of their businesses. Farmers who took part in the first year have confirmed they have higher levels of confidence in their business, better business management, and stronger communication within their family.

The Prince’s Farm Resilience Programme directly addresses some of the issues raised in a report commissioned by the Fund from the University of Exeter, ‘Is there a future for the small family farm in the UK?’

The report detailed how the loss of small family farms would have devastating effects for the British countryside, leading to loss of employment, breakdown of rural communities, and potential negative environmental consequences. The report concluded that it was essential to maintain a diverse range of farm sizes, but that this was in significant jeopardy.

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