Memorandum submitted by Unilever (SFS
58)
INTRODUCTION
1. In December 2008 Unilever was contacted
to provide written and oral evidence to the EFRA Select Committee
inquiry on "Securing Food Supplies up to 2050: The Challenges
for the UK".
2. We are pleased to provide evidence to the
Select Committee and present our views on a number of questions
which have been raised. Our main focus is on the question of how
well placed the UK is to make the most of its opportunities to
respond to the challenge of increasing global food production
by 50% by 2030 (and doubling it by 2050) while ensuring that
such production is "sustainable".
3. It should be noted that Unilever has also
provided input to the written submission made by the UK Food and
Drink Federation (FDF). We therefore limit our responses to a
number of key questions in addition to the evidence provided by
FDF.
How to use the UK potential to increase production
in a sustainable way?
4. In 2006 the UK imports of food and
drink products amounted to £25 billion with exports
of some £10.5 billion. The difference between imports
and exports has doubled between 1995 and 2005. Depending
on the definition used the UK now imports between 40% and 50%
of its food supply. The UK is therefore increasingly dependent
on food imports.
5. For the period 2010-2030 it is expected
that the UK population (now 60 million) will increase with
another 10 million people. For the same period we may expect
certain changes in the diets and additional demand of healthy
foods.
6. We believe that the development at global
level and in the UK would merit a strong focus on the potential
to increase domestic production in a sustainable way. This may
require action at the level of individual sectors (including fruit
and vegetables).
7. The issue of food security has received
a substantial amount of political attention recently. This, together
with an active participation of key stakeholders, could result
in the necessary improvements in future food production capacity.
This could answer the question whether it will be possible to
increase food/feed production by 50% in the UK in a sustainable
way and whether the UK would be in a position to contribute in
a proportional way to the additional global food production.
8. In this context it can be argued that
Europe and the UK will not be constrained dramatically by climate
change compared to Africa. Agricultural production, however, will
have to meet sustainability requirements including water and energy
use, climate change emission objectives while respecting biodiversity
and eco-systems. You can find the Unilever Sustainable Agriculture
programme via the link:
(http://www.unilever.com/Images/es_Growing_for_the_Future_3rd_Ed_tcm181-27805.pdf).
9. The possibilities for production and
yield increases will have to be assessed on a crop-by-crop basis.
As Unilever we are interested in a number of crops including oilseed
rape for food production and fruit and vegetables. We would like
to see a specific emphasis on the quality of the production. This
should take into account the future demand for healthy foods.
10. Targeted investments in infrastructure,
research and innovation would facilitate the expansion of agricultural
production and productivity improvement. This should include water
management, transport infrastructure as well as food storage.
Food Security versus Energy Security?
11. Unilever remains concerned that certain
national policy measures to promote the use of biofuels are distorting
commodity markets and increase pressure on the available food
supply. In our view we need to develop alternative sources for
renewable energy for electricity and transport fuels in the UK
and the EU which do not compete with the required food supply.
How to manage the transition process in the UK?
12. We expect the UK Government to facilitate
investments in agricultural production with the objective to increase
yields and production for food in the period 2010-30. The use
of EU funds and national supplements could be organised in a way
to obtain a successful transition. The criteria need to include
the respective sustainability criteria with a specific focus on
production/yield increase.
13. Concerning the science-base and the provision
of training, it would be adequate to review the role of public
and private organisations in this area. We believe that public-private
partnerships could be an effective way forward to stimulate increased
production of specific crops in specific regions. A specific focus
on added value produce could serve the future demand as well as
the revenues for primary producers.
14. A specific area of attention would be
risk management. Investments to mitigate the risks associated
with agricultural production will strengthen the financial capacity
to invest in agricultural production. Insurance against droughts
and floods as well as monetary and commodity market instruments
all play a role in this context.
15. Considering the age profile of the agricultural
labour force in the UK (average age: 58 with 30% over 65 and
only 3% under 35), it is recommended to reassess the consequences
of this for the future of agricultural production. Measures applied
elsewhere in the EU could be considered in order to improve the
training, recruitment and retention of talent in the UK.
How to engage with European and international
bodies on food policy?
16. In recent years the UK Government played
an important role in putting food security on the international
agenda. Further activities in the UN including FAO would merit
from active UK involvement. Within the EU we will be engaged in
a policy debate about the Common Agricultural Policy post 2013.
A well functioning internal market and the elimination of trade
barriers with third countries would allow for an efficient trade
regime which reduces costs in the different supply chains.
17. In developing countries we need more partnerships
to reduce inefficiencies in the supply chain between the farm
and the plate. The question of supporting innovation will raise
the issue of biotechnology in order to produce more drought and
resistant crops and increase productivity.
18. At the same time we need to examine
and develop recommendations to engage smallholder farmers to increase
agricultural productivity as well as poverty alleviation. Smallholder
farms have an important role to play in meeting domestic food
security objectives in developing and emerging economies. Access
to credits and access to inputs and consumer markets are critical
issues in this context.
January 2009
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