Constrained food affordability to remain predicts EFFP Conference

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“The recession has moved UK consumers from relative prosperity in a period of low food price inflation to a period of enforced frugality,” he said. “EFFP’s prediction is this new era of cost/value focus is one that will remain for some years to come as the affordability of food continues to be constrained.”

Mr Roberts’ opening address set the scene for the conference, Routes out of Recession in which speakers from the length of the food chain debated how the sector needs to position itself for the future.
He suggested that farming and food have a crucial contributory role in helping the UK economy move out of recession and because of this, the interest in the food chain has been heightened from both a political and commercial perspective.
“Growth is more likely to come from food manufacturers and agriculture rather than government or consumer spend,” he added.

On a number of occasions in his address Mr Roberts reiterated that the food industry will continue to be a core part of the UK economy. But he warned that for it to deliver its potential it will need to respond by encouraging investment in core sectors, building whole-chain relationships for the long term as well as delivering innovative short-term tactics to keep consumers engaged and buying.

Asking the question of the chain, Mr Roberts probed why these whole chain initiatives hadn’t happened until now? “In the past the supply of raw materials had been managed by Government intervention; that support has now gone creating more global market exposure”.

 “The innovators in the chain are already responding with strategies for the future,” he said. “We have been working with a number of businesses who are making great progress in this area.

“Price volatility has made food security more of a threat to food companies. It’s great for farmers when cereal prices are high but not for food companies; the opposite is true when cereal prices are low. The innovators have fostered lasting relationships where both ends of the chain work together to iron out the highs and the lows for mutual gain.”

He added that “the UK food chain desperately needs these brokers for change and their resulting innovation. EFFP has been working with businesses across all sectors and, in our experience, the unifying principle that the visionaries all share, is the drive to strengthen food chain relationships to deliver long-term value to all partners.

“In the work that we’ve done with food manufacturers, retailers, processors, food service and farming businesses, the drive for partnership has fallen in to three key areas: provenance, security of supply and supply chain efficiencies.
Irrespective of the goals the essence of all the partnerships is the same; it is no longer them and us, farming or food; the businesses are part of the same chain and the closer the ties between farming and food, the better the rewards will be.  Farming and food are stronger together.”

The other speakers at the EFFP conference included Marc Bolland, Chief Executive of Wm Morrison Supermarkets; Jonathan Warburton, Chairman of Warburtons Ltd, Tim Slater, Managing Director of DHL Supply Chain UK & Ireland and Christopher Mack, Executive Chairman of Fresca, the business behind the visionary Thanet Earth fresh produce facility in Kent.
Full conference proceedings and papers can be accessed at www.effp.com/routes