The opposition party has vowed to place tighter restrictions on the usage of the Union Flag label on food packaging if they come into power.
Under the present rules, food products can display a Union Flag or ‘Made in the UK’ label even if key ingredients are sourced overseas. The product only needs to be packaged or processed in the UK for origin to be implied.
But according to the Tories, the current labelling rules are misleading. They believe a change would stamp out existing ‘loopholes’ and help to give British consumers greater clarity about the origins of the food they buy.
If passed, their plans would mandate that single-ingredient products such as meat, eggs, dairy and fresh produce must be entirely born, raised, grown, slaughtered and processed in the UK before such labelling can be displayed.
But would this proposed change just give food producers yet another headache to deal with; and do customers actually care when push comes to shove?
Do manufacturers want the change?
The post-Brexit era has brought a seemingly incessant wave of bureaucratic challenges to British businesses of all shapes and sizes, with food manufacturers and farmers who trade with EU nations significantly affected.
The intentions behind the Conservative proposals sound reasonable; after all, encouraging more home-grown produce is is generally good for the economy, would reduce food miles, and help to drive more jobs for local people. But is now really the time to change things, when manufacturers are already grappling with so much instability and change?
For Charles Baughan, owner and MD of Devon-based Westaway Sausages, the answer is a resounding no: “I do not see this move as constructive. As a sausage maker, we can declare British Pork in the ingredients, this shows provenance.
“Currently manufacturers often make statements like ‘Proudly made in the UK with Pork from the UK and the EU’. This surely tells customers what they want to know. I cannot see this change creating extra jobs in food manufacture.”
Analysing the potential regulatory quicksand that manufacturers would have to navigate if changes did ensue, Duncan Reed, partner in the regulatory and corporate defence team at Birketts LLP added: “Misleading labelling, whether through images, brand names or inaccurate product provenance claims could risk significant financial regulatory penalties and adverse PR for producers and retailers.
“However, food producers would need to take care to make sure the use of British food labelling can be justified for each product it is applied to.”
Positive or prohibitive?
Far from the potential regulatory pressures that such measures might engender, one should also ask if they are economically viable.
British manufacturers have now largely adapted to post-Brexit trade flows and have been able to craft some sense of normality in their day-to-day operations.
While these proposals would see UK-based sourcing and production going into overdrive - which would probably help the economy in the long-term and build food resilience - can businesses realistically absorb the cost of changing how they operate so drastically in the short-term? And might it just put them off bothering to pursue the Made in Britain labelling in the first place?
Baughan, who is also the spokesman for Taste of the West which represents some 400 food and drink businesses in the south west of the UK, is clear: “Food manufacturers already face a bureaucratic nightmare of paperwork to show that they comply with legislation.
“The thought of yet another audit to gain accreditation and the ensuing cost or tariff on goods that are accredited is not attractive.”
Striking a much more nuanced tone, however, CEO of Prof Consulting Group, Mark Field said: “At a macro level the proposed changes could be good for industry and drive demand through regional sourcing policies; however, the risk is it could also reduce competitiveness and drive-up finished product costs. Initially I don’t see it as a job creation strategy, although should demand build there could be that upside later.
“Operational downtime, clean downs, and product changeovers are significant challenges within the food sector, this will be a key consideration as we look at industry’s willingness to be involved in complex product groups and how retailers respond. Products with this certification would need to demand a premium which then comes back to consumers’ willingness or ability to pay more.”
Does the average shopper even care?
The answer to this one is perhaps rather self-evident. Do British customers want to consume British goods? Of course they do. But will they still prioritise British goods if the pricing becomes less competitive? For the vast majority, no.
Woolly ideas around home-based production and job creation stop at the till. And Britain is not in a good place economically right now - and hasn’t been for quite a long time.
According to the latest government figures, around 7.5 million (11%) of the UK population lives in a household experiencing food poverty.
In an even clearer indictment of the reality of the situation – the Trussel Trust estimates that there were around 61,000 food banks nationwide in 2010. This number now stands at roughly 2.9 million.
In theory, if manufacturers are somehow able to adhere to the proposed changes without passing on too much of the cost to consumers, they could stand to benefit significantly; but in practice, this may prove far too difficult, or even impossible for many.
Baughan said: “I do not see the label as likely to be valued by consumers to justify an increase in prices.”
Whoever leads after the next general election, Baughan wants them to focus on “sorting out the SPS agreement and trade with the EU; sorting out the legislation and compliance with Extended Producer Responsibility, and sorting out compliance with the public sector procurement”, perhaps solidifying where the areas of real importance lie for food manufacturers right now.
He is also calling on Downing Street to drive job creation and food security through “cost effective schemes to support the very large percentage of SMEs in the food and drink sector”.
In short it would appear that neither manufacturers nor their customers are particularly concerned with a labelling change right now.
Although in theory - and in more stable economic climes - the policy would be very nice to implement, it’s probably not the most viable plan for now.
