Memorandum submitted by The Fresh Produce
Consortium (SFS 54)
INTRODUCTION
1. The Fresh Produce Consortium (FPC) is
the UK's trade association representing the complete spectrum
of the fresh fruit and vegetable produce industry: from growers,
importers, wholesalers, retailers, distributors, packers, food
service organisations and other allied organisations. Among our
members are a number of wholesale market tenants' associations,
as well as individual companies trading at markets.
EXECUTIVE SUMMARY
2. FPC welcomes the inquiry by the Environment,
Food and Rural Affairs Committee into securing food supplies up
to 2050. We believe that the fresh produce industry has a pivotal
role in helping the Government deliver its strategy "Food
Matters", and welcome the recognition that long-term food
security, sustainable food production and consumption must be
delivered in a global context.
3. There are a number of actions identified
in the strategy to which FPC and its members can contribute: from
meeting strategic policy objectives to achieving food production
in a low-carbon world, calculating greenhouse gas emissions from
agriculture, reducing excess packaging and increasing re-use and
recycling, to reducing food waste and recovering energy.
4. Until recent price rises last year there
had been an actual long-term decline in real UK food prices, with
the average UK household spending 9.2% of weekly expenditure on
food in 2007 compared to 20% in the 1960s.
5. The UK is more self-sufficient than before
and after the Second World War, with UK production of 60% in all
foods and over 74% in foods which can be produced in the UK.
6. Around 60% of fruit and vegetables are
imported into the UK, providing us with produce outside the UK
season as well as varieties which simply cannot be grown in the
UK.
7. Government investment in research and
development, as well as training, is essential to ensure that
the industry is equipped with the necessary resources to meet
the challenges of delivering food security in 2050.
8. In addition, the fresh produce industry
would welcome further support to remove unnecessary documentary
processes imposed within the UK which put the UK on an unequal
footing with regard to other EU member states and third countries
which apply and interpret the same legislation in a less bureaucratic
manner.
"GLOBAL NOT
LOCAL"
9. Research indicates that about 83% of
greenhouse gases are created in the production phase of food,
with transportation representing only 11% of the life cycle of
greenhouse gases. The Fresh Produce Consortium is working with
the Carbon Trust and others to look at how we can identify sources
of emissions and reduce the carbon footprint of companies and
their products.
10. Sectors of the industry like the wholesale
markets are well placed to provide local supplies of affordable,
good-quality fresh fruit and vegetables. The potential for local
markets to contribute both within local communities and their
economy is significant. Independent retail markets are a key customer
group for wholesale market traders and an important element of
the local economy.
11. According to the Food Climate Research
Network studies have shown that some imported products will have
been grown or manufactured in less greenhouse gas intensive ways
than their UK counterparts, with savings from greater efficiency
outweighing negative impacts of additional transport. It is therefore
essential to balance transport emissions with other factors when
evaluating and fully understanding the environmental impact of
fresh produce, regardless of its origin.
12. Encouraging a healthy diet. The total
quantity of fruit and vegetables marketed in the UK in 2006 was
8.1 million tonnes. Since 1996 the market volume has
grown by 1.2 million tonnes, or 16.8%. The market still has
the potential for further expansion in order to meet consumption
targets of 5-a-day. If the entire UK population were to eat the
recommended 5-a-day, actual consumption would be in the region
of 8.8 million tonnes.
13. In addition, the industry's campaign
"Eat In Colour" is ideally placed to provide consumers
of all ages with advice on how to enjoy eating healthily and to
reach the recommended 5-a-day target. We recently published the
findings of a TNS consumption survey which indicates that on average
consumers are eating 2.5 servings of fruit and vegetable
a day. Without a dramatic change in eating habits it could take
another 25 years for consumers to meet the recommended 5-a-day.
14. With rising obesity levels across Europe
it is essential that we encourage more people to eat fresh fruit
and vegetables and that we can continue to provide a sustainable
supply of fresh produce against the challenges of feeding an increasing
world population, competing pressures on agricultural land and
the impact of climate change.
15. The role of Defra. FPC wishes
to ensure that consistent standards allow businesses to trade
effectively in the UK and across Europe. We are concerned that
the revised Marketing Standards, as stated by EU and UK Government
representatives, are being promoted as a simplification when in
effect, subject to clarification of Defra's interpretation, they
are likely to introduce additional layers of bureaucracy, complexity
and cost to the fresh produce industry.
16. Over and above the specific Marketing
Standards for ten types of produce, the introduction of a new
General Marketing Standard for all fresh produce means that products
which have not been included previously will be covered by the
new Regulations. We assume that this will require the industry
to register details for import notification for a considerably
greater number of products via the online PEACH system which will
certainly increase both workload and cost to the industry.
17. The Regulations are due to come into
force on 1 July 2009 and we are still awaiting the start
of a full consultation with the fresh produce industry. Our concern
currently is that we will not have enough details or sufficient
time in which to make a meaningful contribution to assist with
the effective implementation of these new Regulations.
ENSURING HORTICULTURE
CAN MEET
THE CHALLENGE
OF INCREASING
GLOBAL FOOD
PRODUCTION
18. The European Parliament's recent vote
in favour of removing key products which are vital for controlling
pests, weeds and diseases will jeopardise the ability of European
horticulture to supply good quality affordable produce in a safe
sustainable manner. Critically, this decision has been made with
no full assessment of the wider impact on food supply.
19. Growers already have a limited range
of products to protect horticultural crops, and in some instances
there will be no viable alternatives for treating common pests
which reduce yields and damage fresh produce. It may become uneconomic
to grow some crops such as sprouts and carrots, and lower yields
will mean hard-pressed consumers will have to pay higher prices
for their fruit and vegetables, including apples, pears, raspberries,
leeks, peas and beans.
20. Around 1.9 million less well off
people in the UK are eating less than one serving of fruit and
vegetables a day. Increasing food prices would deter them further
from enjoying a healthy diet, adding to concerns about rising
obesity levels and poor health.
21. In addition, it could become harder
to manage pests and diseases globally. A limited range of crop
protection products could lead to the intensive use of surviving
active substances, increasing the risk of spreading resistant
strains of pests and diseases.
22. International trade could be affected.
A substance banned in the EU could still be used on produce imported
from third countries. In theory the Commission should allow an
import tolerance if supported by appropriate data, however this
would allow produce to be imported which may contain residues
of substances not approved in the EU. Refusing to grant an import
tolerance despite risk-based evidence of safety being presented
by a non-EU country could lead to a challenge by the World Trade
Organisation.
23. The horticulture industry already leads
in the adoption of integrated pest management systems and we will
continue to press the UK Government and others to ensure that
the industry has the necessary tools to provide a sustainable
supply of fresh produce.
INTEGRATING SYSTEMS
AND USING
ELECTRONIC PROCESSES
24. A report by SITPRO ("The cost of
paper in the supply chain" 2008) found that the current documentary
systems cost the perishable food supply chain more than £1 billion
annually.
25. UK perishable food imports for 2005 were
valued at £25,960 million (flowers: 3.4%—£876 million;
vegetables and vegetable products: 98%—£2,535.1 million;
fruit and fruit processes: 11.9%—£3,097 million).
Exports from the UK totalled £10,761 million (flowers:
0.5%—£48.6 million; vegetables and vegetable products:
2.9%—£313.6 million; fruit and fruit processes:
8.3%—£892.8 million).
26. The cost of document-related administration
in the sector is estimated to be around 11% of the supply chain
value per annum, with the generation of paper-related documentation
estimated at £126 million a year. Nearly 13 million
man hours in 2005 were estimated to have been taken up with
entering data, chasing late or missing documents or preparing
claims for deferment monies deposited with HMRC, equating to over
£354 million a year.
27. A single consignment transaction, from
grower to retailer, can comprise up to 150 documents (or
up to 225 pieces of paper) which results in duplicate elements
of information being entered up to 42 times.
28. There is enormous scope to simplify
procedures between importers, exporters and authorities, and to
integrate electronic systems to reduce these costs to the fresh
produce industry. According to the SITPRO report, with the introduction
of e-documentation and shared data through a "single window"
the chilled food industry could save at least £700 million,
around 70% of the costs, and benefit from fewer inspections of
consignments, and reduced clearance processing time. The fresh
produce industry represents about 25% of the chilled food industry,
and therefore could save around £175 million according
to SITPRO's estimates.
29. There is evidence that several Government
departments and agencies often require the same documentation,
leading to duplication of resources by the industry. Improved
sharing of data, transfer of documentation and better integration
of Government departments and agencies would also reduce unnecessary
bureaucracy.
GOVERNMENT INVESTMENT—RESEARCH
AND DEVELOPMENT,
AND TRAINING
FOR FUTURE
WORKFORCE
30. There is a need for Government to invest
further in research and development to support the industry. It
is vital that the industry continues to make advances and develops
the necessary tools to meet the challenges of increasing food
production.
31. Government support is needed to encourage
young people to develop careers in food production and to provide
the necessary training. The fresh produce industry has to compete
with other industries which have greater investment in this area
and which are perceived as more attractive by a younger generation.
January 2009
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