#JSRandD

Competitiveness in a Global Food System

Ian Noble

Mondelez

Building our Sector’s Competitiveness in a Global Food System

AgriFood employs 3.9 million people or 13.5% of UK Employment

The AgriFood sector contributes £109bn or 6.8% of total UK GVA

The AgriFood sector is the biggest industrial sector in the UK, employing almost 4 million people

Agriculture and

Land Use

Food and Drink

Manufacturing

and Processing

Supply Chain

and Logistics

(Wholesale)

Retail

OperationsConsumption

£9.8 Bn £26.5 Bn £10.7 Bn £29.1 Bn £26.9 Bn

450k 420k 250k 1.1m 1.68m

High fragmentation to high consolidation

Value of exports £18.9bn (6% of UK exports)

Value of imports £39bn (9% of UK imports)

AgriFood value chain and key statistics

Value

Employment

Trade

AgriTech specifically contributes £4bn GVA

Global market size potential of £277bn

Employing 65k people

Trade Balance

UK

The UK AgriFood sector is facing several challenges in global competitiveness…

Food Feed and Drink Exports 1984-2014

Top 10 EU Food and Drink Exporters, (2014)Labour Productivity in Agriculture (1993=100)

Global Export Index 1980-2015 (2000 = 100)

• Global food exports increased by

90% in real terms (2000-14) and

continue to grow at high rates,

faster than the average of all

exports

but

• UK productivity is lagging behind

the rest of the world

• The trade balance has widened by

26%, in the wrong direction (2005 –

2014)

• The UK sector lags in

competitiveness against

comparable EU countries

Commentarya

b

c

d

a

b

c

d

Sources: World Trade Organization, Defra data, Agriculture in the UK 2015, International Trade Centre (Trade Map)

• 120 projects funded to bring ideas to market, worth over £90 million (industry and HMG) – BEIS round 5 has just been completed

• Over 200 businesses and research organisations, £60m government and industry investment to date and £22m projects with SMEs

The AgriTech Strategy was launched in July 2013 with a set of key objectives that have mostly been achieved

2013 Objectives Key Achievements to Date

• £80 million Centres established to create capacity in the UK to translate agricultural innovation into commercial opportunities, stimulate inward investment and improve farming practice.

• This also includes a £11.7m “big data” Centre announced - Agrimetrics• Will leverage up to £12m funding from industry over several years, to build a more

intelligent, productive, and sustainable food system

• £3.6m employer-led skills programme in place• Agri-Tech skills group’s influence secured apprenticeship trailblazers• Plans under development for a professional framework and to more effectively join up

wider agricultural skills agendas • Formed the Agri-tech (and now AgriFoodTech) Leadership Council that has provided a

strong and coherent voice for the sector across Government

• 2013 exports £13.6bn / 2013 imports £32.5bn• UKTI ‘Agri-Tech Organisation’ established 2014.• Secured 20 investment wins with total value over £375m in 2013-14• Build out engagement with Industrial Strategy Challenge Fund

Import / Export

Skills

Centres for Agricultural Innovation

Catalyst

Technological

Innovation,

Commercializati

on and Big Data

Build Skills and

Leadership

• Provide stronger leadership for the sector

• Build a stronger skills base to attract and retain a workforce that is expert in developing and applying technologies from the laboratory to the farm

Improve Funding

and Investment

Performance

• Align industry research funding with public sector spend

• Increase UK export and inward investment performance

• Increase support to develop, adopt and exploit new technologies and processes

• Help UK exploit the potential of big data and informatics and become a global centre of excellence

• Improve the translation of research into practice

Example

In Jan 2016 the AgriFoodTech Council was expanded to drive efficiencies across the entire AgriFood System

Goal

Role

What

does this

include

Securing the global AgriFood growth opportunities for the UK through technological innovation

Trusted expert advice to

government and industry

Promote a joined up network of

stakeholders

Oversight of the activities within

the scope of the Council remit,

and ensuring their connectivity

- Consulting with key industry

stakeholders

- Scenario development for

assessment

- Making recommendations to

government

- Dissemination of information

- Facilitating a cohesive approach in

crowded “spaces”

- Strategically focussed key

stakeholders around a common

goal

- Ensuring an “enabling environment”

to deliver progress

- Embedding sustainable and new

ways of working

- Ongoing support of catalyst funded

projects and their successful

completion

- Oversight of the Centres for

Agricultural Excellence

- Linking in the Food Innovation

Network to the AgriFoodTech

The Council will help drive efficiencies, effectiveness, productivity, overall sustainability and interdisciplinary thinking.

…and its unique advantages place it in a good position to grow and attract investment

A trusted brand• We have global and trusted brands; with a strong reputation for high standards of quality, safety, animal welfare,

sustainability and traceability

World class research & science

centres

• We have world-class research and education in many relevant disciplines, with world-renowned institutes, including University of Birmingham, Imperial College, JIC, Quadrum Institute, Rothamsted, Roslin Institute and Nottingham University

• The UK’s academic and corporate research institutes conduct research on almost every aspect of the sector’s key challenges

Strong performancein trade & exports

• Food and drink exports for H1 2016 reached £6.6bn, growth of 8.7% on H1 2015.

• Exports to non-EU markets (+12.6%) continued to outperform exports to the EU (+7.2%) raising the non-EU share of exports to 28.5%

Safe & traceablefood

• The Elliott Review into the Integrity and Assurance of Food Supply networks confirmed that our food is some of the safest food in the world

Dynamic businessenvironment &

supply chain

• The UK has a progressive food and farming supply chain worth £109bn annually

• IT has world-class businesses in food and farming

• Innovative food manufacturing & retail sectors to address the challenges of our current lifestyle

• UK farming industry is well placed to grasp opportunities for economic growth and to help build a green economy that supplies healthy food to global consumers

Industrial strategy • The UK’s new focus on industrial strategy presents a clear opportunity for investment within the AgriFoodTech sector

Industrial Strategy Challenge Fund

Specific challenge areas:

• Bioscience and biotechnology;

• Leading edge healthcare and medicine;

• Manufacturing processes and materials of the future;

• New energy technologies including battery storage and grid technologies;

• Quantum technologies;

• Robotics and artificial intelligence (including driverless cars and drones);

• Satellites and space technologies; and

• Transformative digital technologies including supercomputing, advanced modelling, and 5G.

Additional exploration themes:

• Integrated and Sustainable Cities

• Technologies for the Creative Industries

Brexit also presents challenges and opportunities for the AgriFoodsector that mean it should be a priority for Government

• Public research funding attracts private and international investment and EU resources and collaborators and ~50% of research articles published by UK researchers have international co-authors; it will be important to protect both funding and access to international talent.

• Brexit provides an opportunity for Government to reduce red tape around research, allowing sound science to support appropriate regulation for new technologies.

R&D

• Key farming sectors are reliant on subsidies, a lot of them from the EU, and self sufficiency has reduced from 78% in the eighties to 62% today.

• AgriFood is a high volume/low margin sector so even small changes can have a large impact.• Outside the EU, the UK has the opportunity to replace CAP and increase inward investment and self-

sufficiency throughout the sector through an innovative and internationally-facing industrial strategy.

Resilience

• Retail is the biggest consumer facing sector and will feel any loss in consumer confidence first.• The UK has among the world’s safest food and highest standards of animal welfare, and can protect and

improve on these standards and consumer trust in them.

Consumer confidence

Complexity

• The AgriFood value chain is complex, with traceability and transparency often being a challenge—leaving the EU will risk increasing this complexity if different standards or recognition criteria emerge.

• Brexit provides the opportunity to reform the regulatory landscape and create a truly integrated food system, reducing complexity and red-tape throughout the AgriFood sector and in AgriFoodTechdevelopment.

What

Competitiveness

Food System

Sustainability

Skills

Regulation

Big business

How

Enabling

environment

There is room for the UK to improve its competitiveness in AgriFood

The UK needs to protect and secure our high quality food system

Sustainability is key to ensure the environment continues to deliver the vital ecosystem

Knowledge and data Translating R&D and innovation into practical intervention is key

R&DWe must leverage our world leading research and innovation capabilities to address the

grand challenges

We need to create an AgriFood system with skills and capacity that are fit for the future

We must maintain a robust regulatory framework that facilitates innovation

We must ensure UK PLC remains as the place to do big business in AgriFood

In this context, the Council has identified 8 strategic priorities to 2020

1

2

3

4

5

6

7

8

Helping innovators to

building winning

partnerships

UK Food System approach

Innovations connected across Food and Farming landscape: from ‘Field

to Fork’

Importance of technological innovation

Enabling productivity & competitive advantage at every stage of the Food

System

Maximising successful collaborative R&D between industry & academia

Leveraging the UK’s academic capabilities to create new

possibilities

Three overarching themes to strengthen our global competitiveness:

Innovation is born at the overlaps

Connecting to a world of possibilities

Food Innovation Network to date…

Updated Lambert Agreement - sharedUniversity & business collaboration agreementsLambert Toolkit: NDAs, MTA, Consultancy, Heads of Terms, 7 Research Contracts, 4 Consortium Agreements &…

* www.gov.uk/guidance/university-and-business-collaboration-agreements-lambert-toolkit

Konfer search systemUniversity capability search tool, support to identify potential research partners

FIN web portalAccess resources, events, ask for assistance

http://ktn-fin.starbit.co.uk/

SME EngagementSupport 20+ SMEs in finding & building connections

Connecting for growth

FERA connection event 200+ attendees

Robust testing doesn’t need to be expensiveMalton – Campden BRI – AprilWeston-Super-Mare, FoodworksSW – 6th July

Crowd fundingHarrogate 23rd May

NPD, allergens & analytical approachesReading - RSSL 15th June & 26th July

Packaging eventYork - Nestle 12th June

Innovation tbcSheffield – SHU & Sheffield Innovation Project

…beyond the day job!