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Food and drink

Help with marketing

Defra encourages the primary and food processing industries to improve their marketing, performance and overall competitiveness, and has links with the agriculture, horticulture, manufacturing, processing, retail and catering sectors. It has launched various initiatives to improve opportunities for British food suppliers.

In 2004 Defra's remit included the administration of national and EU marketing and processing grant schemes; ongoing work to encourage all parts of the food chain to work together constructively on issues of mutual interest and concern (in particular competitiveness issue) and working to encourage collaborative marketing.


Food chain

The food chain represents the production and delivery of our food from farm to fork. In the UK this is big business. Here are some statistics to give you an idea:

  • It employs about 12.5% of our workers
  • It represents 8% of our economy
  • Farmers manage 70% of the land.

It is a complex industry with world class organisations set alongside individual farmers and growers. There are a range of pressures at work on the sector, and to survive all businesses in the chain have to respond to what consumers care about and want. This can extend beyond simply the price of the products. Now more than ever before, quality, safety, nutrition, animal welfare and environment are all factors which influence consumer decisions. The whole chain is faced with a constant need to adapt to these changing circumstances, whilst at the same time maintaining profitability. In addition, many businesses are competing in global markets and have to deal with competition from imports as well as marketing their products abroad.

Defra is aware of the many and varied pressures faced by each part of the food chain. We are aware that farm incomes are near their lowest levels, whilst pricing and competition has never been more fierce. We hope that they will work together to understand the problems faced at all levels in the chain, and work constructively to overcome them. We also hope that they will take advantage of the various support measures available.

Defra fully supports the work of the Food Chain Centre (FCC). Facilitated by IGD, and with membership being drawn from all sectors of the food chain, the FCC is testing and promoting various approaches to business improvement. For example the FCC has just launched a benchmarking starter pack which aims to help all farmers and growers compare performance, cut costs and improve profits. The FCC has also been awarded three grants under the Agricultural Development Scheme (ADS), the details of which can be found on the ADS projects page. Many more interesting initiatives are planned for the future.

 

Co-operation and collaborative marketing

Defra acknowledges that many smaller primary producers are not able to offer the scale and continuity of supply sought by their customers, gain efficiencies of scale and introduce more professional approaches to their businesses. Working together provides one obvious solution. Many farmers and growers are already members of co-operatives or other groupings, however, far fewer are members of co-operatives that in many competitor nations.

Improving both formal and informal co-operation between farmers and farmers and the food chain was highlighted in Sir Don Curry's Policy Commission Report as being a key to improving the competitiveness of the sector. The report recommended the establishment of a new industry led body, the English Farming & Food Partnerships (EFFP), which would champion the promotion and development co-operation at a national level.

Defra welcomes the establishment of the EFFP and will work closely with it on issues of mutual concern. We will continue target projects aimed at improving co-operation between primary producers under the Agriculture Development Scheme or measures contained within the England Rural Development Plan.

 

Agriculture Development Scheme (ADS)

Originally launched on 11 October 1999, as part of the aid package for farmers announced by the Minister on 20 September 1999, the ADS is a non-capital business support scheme to provide match-funding (ie, 50 percent grant) for industry-led projects. Three rounds of the ADS were held to address particular priorities

Following a public consultation, a new ADS scheme was officially announced on 23 July 2002 (news release 301/02) that awarded grants of up to £0.5m quarterly. £5m per year was available for projects to improve marketing performance and competition. Projects were selected for their industry-wide effect and priority was given to those which involved co-operation benefiting primary producers, benchmarking, spread of best practice, assurance schemes and opening up new markets. More detailed information on successful projects can be found on the ADS Projects page.  ADS Panel meetings were held quarterly, the last being on 28 September 2007.

  • ADS 1: succesful applicant's claim for payment of grant aid

For futher enquiries:

Defra
Delivery Chain Core Function
Area 4C, Nobel House
17 Smith Square
London SW1P 3JR

Tel: 020 7238 1205
Fax: 020 7238 5728
Email: ads.mailbox@defra.gsi.gov.uk

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Food Assurance Schemes

Assurance schemes are helping to re-establish consumer confidence in British food. They can assure that the safety, animal welfare, environment and other standards to which food has been produced, and in many cases help traceability. Producers too can benefit from assurance. It offers them a means of demonstrating the integrity of their products, which may in turn give their produce an advantage in the marketplace.

The Policy Commission recommended that the Red Tractor should be a baseline standard, and that the standards underpinning it need to be owned by the whole chain and managed by Assured Food Standards on their behalf. The Government agrees with the Policy Commission's views, and will work with Assured Food Standards to ensure that all schemes covered by the Red Tractor logo develop a considered and 'whole farm' approach to assuring produce. The Government is also targeting food assurance schemes under the Agriculture Development Scheme (ADS) grant and has awarded AFS grant aid under this scheme.

 

Industry Forum Adaptation

The Government's 1998 Competitiveness White Paper " Our Competitive Future - Building the Knowledge Driven Economy", included a commitment to fund projects to introduce the concept of the Society of Motor Manufacturers and Traders (SMMT) Industry Forum initiative in up to ten other sectors. £15m of government support was made available. The core aim of the programme is practical transfer of world class best practice skills or expertise - in the workplace - into UK companies. Three types of project are envisaged - feasibility studies, pilot schemes, and full proposals.

For further information on any of the above initiatives contact Food Chain Competitiveness & Organic Division at:

Food Chain Competitiveness & Organic Division
Defra
Area 4C, Nobel House
17 Smith Square
London SW1P 3JR

Tel: 020 7238 5972/ 5389/ 6025
Fax: 020 7238 5728

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Page last modified: 16 October 2007

Department for Environment, Food and Rural Affairs