fresh produce consortium all things markets – operational and policy matters affecting wholesale...
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Fresh Produce Consortium
All Things Markets – operational and policy matters
affecting wholesale markets
Presented by Nigel Jenney Chief Executive
The Fresh Produce Consortium
UK trade association for the fresh produce industry
Recognised as the voice of the UK industry
Provides advice on regulatory and technical issues
Liaison and lobbying with wide range of stakeholders
Business development
Total market volume – fruit & veg
1998 2005 2011 2012 2013 20140
1000
2000
3000
4000
5000
6000
7000
8000
9000
FruitVegTotal
Thousand tonnes Defra
*2014 provisional data
UK Imports – fruit and vegetables
Defra*2014 provisional data
1998 2005 2011 2012 2013 20140
1000
2000
3000
4000
5000
6000
FruitVegTotal
Thousand tonnes
UK Self-sufficiency – exploding myths
Defra
Pre-1750 around 100%1750-1830s 90-100% (except
poor harvests)
1870s around 60%1914 around 40%1930s 30-40%1950s 40-50%1980s 60-70%2000s 60%
2014 (provisional):
11% for fruit58% for vegetables
All fruit & veg = 34%
36% - apples19% - tomatoes101% - carrots
UK economy and food prices
Food prices have risen 18% in real terms since 2007
Prices for fruit and vegetables have fallen in past year
Around 12% of household income is spent on food
Fruit & vegetable consumption is falling
Main food issue of concern remains food prices
UK national statistics
Key UK consumer concerns – food issues
2011 2012 2013 2014 20150
10
20
30
40
50
60
70
Food pricesFood poisoning Food hygiene (eat-ing out)Hygiene at homePesticides
% of respondents
FSA May surveys – prompted & spontaneous responses
Wholesale - opportunities beyond multiple retail
Wholesale and food services = 35% of market share
Fragmented & highly competitive sector
Resilient, buoyant & vibrant – despite anecdotal evidence of decline
Maintains market size and extensive presence
Food service trends
Food service is outpacing grocery in terms of growth
‘Modest resurgence’ in independent retail versus fall in out of town superstores
18,000 independent greengrocers in 2015
Eating out is rising year on year
Londoners eat out more than any other region = 20% of national spend on eating out
Regulatory burden – EU & UK legislation
Rising cost of raw materials and distribution
Exchange rates: £ v € Fierce competition –
discounting on High Street Unpredictable weather
conditions
Key issues affecting wholesale
Distribution - delays at Calais & stowaways
FPC lobbying UK Government: Home Office, transport, food safety, insurance
Providing guidance and advice to FPC members
Raising public awareness of impact on fresh produce industry
Focus on Enforcement: review of charges under EC Regulation 669/2009
Comparison of differences in charging regimes
Assessment of additional costs to importers Assessment of alternative service provision
of inspection Comparison of pesticide residue testing
charges
Report published March 2015 and available at BIS website:http://discuss.bis.gov.uk/focusonenforcement/business-focus-on-enforcement-2/business-focus-on-enforcement-fresh-produce-consortiums-review/
Focus on Enforcement: key findings
Inconsistencies in charges by Port Health Authorities Delays in testing and clearance impose substantial costs
on industry No assessment of alternative provider of inspections No recognition of Assurance Schemes and record of
reputable traders in levels of checks
Ministers require FSA to commit to investigate
EU action on plant health exceedances
Greater EU scrutiny & action on persistently high levels of exceedances
FPC facilitated Defra briefings for UK representatives of key exporting countries
8 countries received warnings in 2014
EU ban on Indian mango lifted but still under scrutiny
Food safety and integrity
Spotlight on food integrity since UK ‘horsemeat’ scandal
Traceability as risk management tool as well as legislative requirement
FPC Produce Integrity Database
www.freshproducedatabase.org
Modern Slavery Act and your business
Affects organisations trading in the UK with annual turnover of £36m+ and their suppliers
Need to make public annual statement
Evidence of measures taken to ensure slavery & human trafficking is not taking place in your business & your supply chain
FPC developing guidance for members
Keep in contact with FPC
Nigel [email protected]: 01733 237117
www.fpc.freshtalkdaily.co.uk
www.freshproduce.org.uk