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FDF to help SMEs play greater role in shaping policy

By Jess Halliday, 05-Sep-2007

Related topics: Financial & Industry

The UK's Food and Drink Federation has launched a SME Forum to provide small and medium enterprises with timely information on matters that could affect competitiveness and help them to play a more active role in the organisation's decision making.

Generally speaking, an SME (small and medium enterprise) is taken to be a company that has a turnover of less than £50m, or less than 250 employees. According to desk research commissioned by the federation, SMEs make up 66.2 per cent of companies in the UK food and beverage sector.

This means that, together, SMEs make up a powerful force in the sector. "Their dynamism and entrepreneurial flair often puts them in the vanguard of new consumer trends," said the federation.

But SMEs find it hard to dedicate resources - especially human resources - to keeping abreast of regulatory and other matters. Bigger companies, on the other hand, do tend to have dedicated personnel and can actually help shape polices.

"We also want [SMEs] to get engaged in the way we work, and to influence the way we deal with regulators," Hunt told FoodNavigator.com.

The SME Forum will provide a number of services to members: tailored industry information; topline briefings on key issues; workshops, briefings and seminars to focus on issues and facilitate networking; an SME advisory group; and a dedicated hotline and email inquiry facility.

The FDF conducted two surveys to find out what assistance or information SMEs would find useful - one amongst its members, and one amongst non-member companies in the south west and the north west of England.

The message from members was that they would value up-to-date information, especially on legislative changes and food safety issues. Policies on scientific evidence were near the top of the agenda.

Non-members were most concerned about matters that can impact their competitiveness and profits, as well as compliance with rules in the area of food safety and labelling compliance.

Although the FDF said regulators are increasingly sensitised to the need to think through the impact of regulation on SMEs, the pace of regulation can be very fast. But unless they are aware of it, it can be hard for companies with a small and very tightly focused management team to ensure their interests are taken into account.

One new piece of legislation that is affecting SMEs is the new health claims directive, which is filtering out to the market and causing companies to change their packs and marketing materials.

Concerns have been raised about the costs of assembling dossiers on health claims, which can extend into six figures. Moreover mooted plans by the European Food Standards Authority to charge companies for dossier review under this, and other pieces of regulation, met with dismay from SMEs.

The impact of such additional expenses could be to curb innovation.

There are also concerns about the media driving agendas at a policy level. For instance, Hunt drew attention to a recent campaign by consumer watchdog and publisher Which?, which hits out at the licensing of cartoon characters on snack food products.

"Small companies are involved in gifting and treat products," said Hunt. "We want the approach to be balanced."

Hunt said that the aim of the forum is not really to extend membership, but to enable closer dialogue.

The aims, he said, are aspirational, to provide products, services and channels to give people information in the right way.

"We will know when it is successful by the feedback we received."

The FDF counts manufacturers of all sizes amongst its members, as well as trade associations and other groups whose interest is focused on specific areas of the industry.