A World of Change
UK food and drink manufacturers are facing a period of unprecedented change.
Public concern about how best to address the diet, health and lifestyle issues
facing our society today has led to increasing pressure on the industry from the
government, regulators and other bodies. At the same time, concerns about the
health
of the planet are growing in importance.
We can be proud of the positive
actions
our industry is taking to meet these
challenges. When it comes to health
and
wellbeing, for example, UK
manufacturers have led the world in terms of
reformulating
products; extending consumer
choice; and introducing significantly
improved
nutrition labelling; and will
continue to do so.
The issues of climate change and sustainability are now also at the forefront of
the social and political agenda. We already have a good track record in this
area. Between 1990 and 2005 the industry cut its carbon footprint by over 15%, for
instance. But we recognise that we have an important role to play in the
sustainability debate going forward and understand we need to reduce our environmental
impact yet further. This is why we have published our five-fold Environmental
Ambition, containing pledges to cut greenhouse gas emissions; send less waste to
landfill; minimise packaging; reduce water use; and achieve fewer and friendlier
food
transport miles. We will constantly measure progress towards meeting these
targets
and make public the results of our efforts.
There is much to be positive about in the food and drink industry, and FDF
members will continue to respond to changing consumer trends. However, the spectre
of
rising raw material prices hangs over us all. Wheat prices, for example,
have
risen sharply in recent times due to droughts and floods, increasing demand
from
developing nations, falling global stocks and producers of biofuels.
Government
figures show that food factories are now having to pay 16.4% more for food
ingredients than a year ago.
Although food and drink manufacturers will continue to work hard to keep their
costs down by creating efficiencies, it is important that regulators play their
part to ensure food prices do not continue to rise so rapidly. For example,
further
reform of the Common Agricultural Policy, which guarantees farmers in the
European Union a minimum price for their produce, should be a priority to allow
manufacturers greater access to raw materials at competitive prices.
The UK and EU governments must also consider carefully their plans to increase
the proportion of transport fuel we source from biofuels generated from crops, to
ensure this does not take place at the expense of food supplies.
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Last reviewed: 15 Apr 2008