Food and drink sector has mixed reaction to Government Industrial Strategy

Group of agriculture experts engaged in conversation about crop development in a vertical farming facility. Three researchers using digital tablet and discussing crop development while walking in modern vertical farm.
Agri-tech is one of the areas that is a focus for the Government's Industrial Strategy. (Getty Images)

The Industrial Strategy sets out a 10-year plan to boost investment and create skilled jobs, with the aim of making it easier and simpler for companies to do business.

As part of the initiative the UK Government said it would tackle high industrial electricity costs, promote free and fair trade, expand access to finance, drive innovation and reduce regulatory burdens.

The Government Industrial Strategy targets eight key sectors and technologies including Advanced Manufacturing; Energy Industries; Creative Industries; Defence; Digital and Technologies; Financial Services; Life Sciences and Professional and Business Services.

The NFU (National Farmers’ Union) welcomed the plan claiming it marked a “huge win” for the UK farming industry as it covers agri-tech and precision breeding technology.

The farming body said it lobbied government departments, including the Department for Business and Trade (DBT), to get agriculture included.

The NFU predicted this would help increase job creativity, reduce greenhouse gas emissions, boost productivity and drive investment in sustainable food, fibre and energy production.

NFU deputy president David Exwood said: “The UK agriculture sector is world class with innovative and tech-hungry farm businesses. With the right investment, farming has the potential to be a key driver in future growth and that’s why we have been pushing hard for it to be included in the Industrial Strategy. We already have proposals within our Blueprints for Growth to support the government’s goals and intend to feed these in as part of next steps.”

He added: “This focus on agri-tech should help farming businesses become more productive, sustainable and resilient, and ultimately deliver even more for the British people and the government’s growth ambition.”

Under the Strategy’s Digital and Technologies Sector Plan it promises to build and upgrade pilot and scale-up facilities to boost the potential of the UK’s engineering biology industry.

The Good Food Institute (GFI) Europe has also welcomed the news, claiming it could support UK researchers and scientists developing cultivated meat and ingredients and fermentation-based foods.

“It’s positive to see the government recognise the UK’s many strengths in engineering biology and commit to boost this sector through a new Industrial Strategy,” said Linus Pardoe, senior UK policy manager at GFI Europe.

“The UK has everything it takes to become a world leader in developing and commercialising alternative proteins, and initiatives like the new infrastructure funding promised today could be an excellent way of unlocking new opportunities, boosting our food security, helping grow the economy and creating future-proof jobs.”

However, there were some concerns about the Government’s approach with the Food and Drink Federation (FDF) calling for the Government to improve the business environment for UK Manufacturers.

Balwinder Dhoot, director of Industry Growth and Sustainability, FDF, said: “The Industrial Strategy includes some welcome measures that could benefit food and drink businesses, such as the expansion of the Made Smarter programme, Growth and Skills Levy flexibility, more innovation funding, and reducing regulatory burdens for business. However, questions remain as to whether critical sectors, such as ours, can access the funding and support mechanisms outlined here.”

He added: “Food and drink manufacturing plays a vital role in ensuring the nation’s food security, provides 500,000 high-quality jobs in every UK region, and contributes £37bn to our economy. It’s clear that government has ambitions for Advanced Manufacturing, and we look forward to seeing how this will translate to supporting the growth of the UK’s largest manufacturing sector – food and drink.”

FDF was not the only organisation to raise concerns. The strategy was also criticised for failing to support the hospitality sector and small businesses.

Kate Nicholls, chief executive of UKHospitality, which represents hospitality businesses said: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the Government’s ambition to create jobs and help people into work.”