Big plans for the food and drink industry

The Food and Drink Federation (FDF) has announced plans to grow the food and drink manufacturing sector by 20% by 2020.

Some sources contacted by Food Manufacture believed this target was achievable, given the momentum underway. However, many industry commentators said the task had been made harder by prime minister David Cameron's decision to veto changes to the EU treaty in Brussels just a few days before the announcement.

Several of those interviewed also supported the views expressed by opposition politicians that the move would isolate the UK in Europe, reducing its ability to influence important EU decisions covering regulation on agriculture, fisheries and food.

Since Cameron's veto, German chancellor Angela Merkel has been notable for saying that, while disappointed, she felt it was important that the UK remained at the centre of Europe. In contrast, French president Nicholas Sarkozy was openly far more hostile.

Commenting on the FDF's vision, business minister Mark Prisk said: "There is huge potential for growth in the food and drink sector. I welcome the industry's ambition to grow the sector by 20% by 2020 and ensure that food and drink manufacturing in Britain has a bright future."

After years in the wilderness as far as the food and drink sector's recognition by the government as an important manufacturing industry was concerned generating both wealth and jobs the FDF now believes things are changing. And while it would still like to see a more coherent food policy adopted by government, it is far less scathing in its criticism than some food policy experts, notably City University London's Tim Lang, who accused the coalition government of "turning the policy clock back 10 years".

The 2020 vision, much of which is predicated on growing the nation's food and drink exports globally, will hinge on the assistance it receives from government. Great store is being placed on what emerges from the new food and drink export forum after it meets early next year. The forum is being co-chaired by food minister Jim Paice and Paul Grimwood, chief executive of Nestlé UK and Ireland.

In a study commissioned from Grant Thornton by the FDF, food manufacturers reported that during the recession, profit margins had been squeezed, especially for small- and medium-sized enterprises.

Firms surveyed called for a "more positive regulatory environment to overcome challenges domestically and improve their competitiveness internationally". In particular, there were calls for greater support for companies to exhibit their wares at overseas food and drink exhibitions something that had been lost since the withdrawal of funding of trade support body Food From Britain in 2009 by the previous Labour administration.

Stressing the importance the government now places on the food and drink manufacturing sector, environment secretary Caroline Spelman said: "There are going to be huge opportunities for Britain's food industry to supply an increasingly hungry world in coming years and sell high-quality products to emerging markets.

"That's why, alongside manufacturers, we're leading a range of strategies, focused on competitiveness, to drive economic growth. 2020 is a welcome project that will fully complement all the ambitious work we're doing."

Spelman also announced that UK Trade & Investment would be providing support for food and drink exporters into emerging overseas markets.