APPENDICES TO THE MINUTES OF EVIDENCE
APPENDIX 1
Memorandum submitted by the Ministry of
Agriculture, Fisheries and Food (C 3)
CONSTITUTION OF
FOOD FROM
BRITAIN
1. Food From Britain (FFB) is an Executive
Non-Departmental Public Body established under the Agricultural
Marketing Act 1983 (as amended) to improve the marketing of food
produced or processed in the United Kingdom. It is the joint responsibility
of the four Agriculture Ministers.
2. The Act defines the functions of FFB
as having the power to organise, develop, promote, encourage and
co-ordinate the marketing in the UK and elsewhere of:
— agricultural and horticultural products
of the UK;
— fish, other than unprocessed seafish;
and
— any other food or drink produced
or processed in the UK.
HISTORICAL OVERVIEW
3. The 1983 Act also transferred to FFB
the functions of the Central Council for Agricultural and Horticultural
Co-operation. In 1992, FFB was additionally designated as the
control body to implement EC legislation on the production or
marketing of organic foodstuffs. FFB was also the implementing
body designed by MAFF for EC Regulations on Specific Character
and Geographical Names.
4. Given the breadth of its role as defined
in the 1983 Act, FFB decided to define its mission as "assisting
the food and drink industry to improve marketing in the UK and
abroad so as to reduce the sector's current account deficit".
FFB's activites covered the following areas:
— UK based export development;
— general promotion in the UK;
— assistance with Group Marketing Grant
and other Agricultural Development Work;
— Quality Work (including the running
of the UK Register of Organic Food Standards).
1993 STEVENSON REVIEW
5. In 1993, Agriculture Ministers appointed
Dennis Stevenson, an independent consultant, to carry out a review
of the work of FFB. The Review examined the role and functions
which FFB undertook on behalf of the food and agriculture industries,
with the aim of making recommendations to Ministers on whether
the range of FFB functions best served the needs of the industry.
6. The Review concluded that, given the
limitations of its budget, FFB should not attempt to be a representative
body for the agri-food chain by carrying out a number of different
activities and bringing the leadership of the industry together.
FFB was neither credible as such, nor did it have anything like
the financial resources to achieve this. It was recommended that
FFB should focus on its export advisory role so as to achieve
greater impact both internally and externally in an area in which
there is general agreement that:
— there is a national need;
— FFB has done a good job;
— the greater amount of its resources
are concentrated.
7. Ministers accepted these recommendations
and agreed that for FFB to effectively re-focus its efforts on
exporting would imply:
— re-directing to exports the considerable
potential savings on central overheads as well as appointing a
Chairman with specialist export experience; and
— finding a way within the constraints
of the Act (which insists on not less than 13 Members of Council)
of giving that Chairman a small dedicated "board" of
people who were not representatives but people who add value.
8. FFB's remit was subsequently narrowed
considerably from the generic promotion of British food and drink
at home and abroad to focus on promoting exports and speciality
food. This reorganisation freed up approximately £1 million
extra to enable FFB to achieve its new aims, which was invested
in overseas office staff, new projects and the opening of two
new overseas offices.
9. At the same time, Geoffrey John was appointed
as FFB's new Chairman and in March 1994 Patrick Davis was appointed
Chief Executive. This change enabled FFB to streamline its management
and provide a more effective service for UK exporters, through
the development of a tight set of objectives and plans for the
business. Both have since left the organisation and were replaced
in January 2000 by Gordon Summerfield as Chairman and David McNair
as Chief Executive.
1998 QUINQUENNIAL
REVIEW
10. FFB was subject to a further review
in 1998. The first stage of the review, known as "Prior Options",
rigorously examined FFB's structure and functions. A copy of this
Review is attached at Annex A [not printed]. The review concluded
that FFB should continue in its present form as it provides value
for money and helps achieve Government objectives. The review
provided strong evidence that the quantity and quality of export
promotion activity has improved considerably since the last review
of FFB took place. The review also concluded that there was a
strong case to continue support for the promotion of speciality
food businesses in rural areas, which contributes to Government
policies on rural development, farm diversification and supporting
small businesses. Its findings were approved by all four Agriculture
Ministers.
11. The second stage of the review, known
as "Efficiency and Effectiveness" (copy attached at
Annex B [not printed]) demonstrated that FFB showed commendable
levels of efficiency and effectiveness whilst making some recommendations
for further improvement to efficiency. FFB has since actioned
these recommendations.
12. FFB now have a first rate track record
with the small and medium size enterprise (SME) companies who
are their principal target clients. Food exporting is an expanding
part of the UK trade, particularly in the processed foods sector,
where FFB have concentrated their efforts and dozens of businesses
have been introduced to exporting.
13. FFB is developing a national strategy
to promote speciality foods and is helping many small producers
better market their products through, for example, gaining access
to multiple retailers and through the development of e-commerce.
An independent study of the economic importance of the speciality
sector was published last year.
CURRENT ACTIVITIES/OBJECTIVES
14. Full details of FFB's objectives and
range of services are contained in FFB's current Corporate Strategy
1998-2001 (copy attached at Annex C [not printed]). To summarise,
FFB's current range of activities include:
Services provided by the London Office
Develop a pro-active client service function.
Development of exhibitions and seminars.
British Food Export Council (BFEC) Membership,
branded as "FFB Fast Track".
Links with other service organisations to provide
further help to exporters.
Services provided in existing overseas markets
Overseas offices have developed a good range
of services, some of which are unique to individual companies,
to assist UK companies enter markets, but the current emphasis
is to ensure project monies are predominantly invested in new
activities.
Develop new market opportunities
Further development of offices in Europe (new
offices have been opened in Portugal and Poland since the start
of this Corporate Strategy).
Development opportunities and export support
services in growth markets.
Marketing consultancy for exporters in new markets.
Tailor-made trade development visits.
Services provided to Speciality Companies
Support and co-ordinate the activities of the
major regional and county groups and to stabilise the group framework
as a basis for their long term self-sustainability.
Develop a programme of national trade development
activity.
Examine the impact of regional and county trade
shows and look to the feasibility of a national Speciality show.
Develop a national promotional strategy and
brand to raise awareness of the quality and range of British Speciality.
Develop a fitness to compete package to provide
a test for companies wishing to expand their business.
15. MAFF, the lead sponsor Department, together
with the other Agriculture Departments, have a strong monitoring
role over FFB's planning and activities. They have an input into
management decisions and planning within FFB. Quarterly meetings
are held to review FFB's activities and performance against corporate
plan targets which all Agriculture Departments are invited to
attend. FFB have always operated on the basis of providing its
services to companies and organisations throughout the UK, and
with devolution, wish to continue on that basis. The impact of
devolution, however, requires FFB to continue to work with regional
organisations to ensure that companies in the various countries
throughout the UK are fully aware of what they can do to assist
their businesses. FFB will be reporting progress to Parliaments
and Assemblies to demonstrate that FFB is providing an effective
and efficient range of services.
FUNDING (GOVERNMENT/INDUSTRY)
1983-2000
16. FFB received Government funding of £5.6
million in 1998-99. FFB's income in that year was supplemented
by a further £7.3 million (representing 56 per cent of total
income) from industry, who are charged for most of FFB's export
promotion services. A copy of FFB's Annual Report for 1998-99
is attached at Annex D [not printed].
17. Also attached, at Annex E, is a chart
which draws a comparison beween Government and FFB funding from
1983 to date. The 57 per cent rise in income from industry from
1993-94 to date (ie post the Stevenson Review) is indicative of
FFB's growing success.
Future strategy
18. FFB's Corporate Strategy runs from 1998-2001
and is due to be discussed at the next FFB Council meeting on
15 June 2000 with a view to producing a revised Strategy for submission
to Ministers by the end of November 2000.
17 April 2000
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