Sainsbury’s boss warns that new government policies to make farming more sustainable may harm Britain’s food supply and cause more imports.
Simon Roberts is the chief executive of Britain’s second largest supermarket chain. He said that the UK food system was “at a crossroads”, because environmental issues like climate change, biodiversity loss, and inconsistent government policies are creating an ideal storm.
The supermarket boss stated that “concerns over the direction of the policy coupled with the system for farm payments post-Brexit has discouraged producers from making investments,” and that there are “real concerns in farming communities regarding the unintended effects on the future of UK Food Production”.
Roberts’s warning was issued at the same time as the Food and Drink Federation (the industry trade body) claimed that a new government policy – the introduction of the “not for EU labeling” – will also hinder production and exports.
Last year, UK producers exported £24.3billion worth of food and drinks, 2% less than they did in 2022. This was due to a slight increase in sales in the European Union, but this wasn’t enough to compensate for a decline in non-EU exports.
The federation anticipates that exports will drop this year, as producers must include labels “not for EU”, on all meat and milk products bound for Northern Ireland. The industry fears that the cost of new labelling will reduce British producers’ competitiveness. This is estimated to be up to £250million per year.
Balwinder Dhoot of the Federation said, “It is baffling that the government would implement something so harmful, which will reduce investment and push up prices for consumers, while delivering a serious blow to our exports at a time when our business needs more support.”
Farmers are worried about the impact that new legislation and regulations will have on their businesses and personal lives. Many people have questioned if the UK pushes environmental regulations on farmers to an excessive level.
The farming industry in England has expressed concerns over the new Environmental Land Management Scheme, which replaces basic payments and pays for farming that reduces climate change and improves the environment.
Many farmers, while welcoming the increased payments, have complained that the scheme is complicated. They have found it difficult to understand what the changes mean for their business and are therefore less confident about investing in the future.
Roberts stated that the industry recognizes the “need to make our food systems more sustainable but the current approach may inadvertently reduce the level of UK Production.” This will reduce capacity in the UK and result in more food being imported, which is of course less sustainable.
A spokesman from the Department for Environment, Food and Rural Affairs (Defra), said that the government was “committed to support farmers and strengthen food security”, as well as making a record £427,000,000 in farming grants this year.
Our farming schemes are based on sustainability, profitability and food production, as well as helping farmers protect the environment.
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