UK trade body calls for more support on environment
In particular, organisations with common interest could work together to help food and drink manufacturers with eco-friendly initiatives, Kuyk told FoodNavigator. “There is also a need for investment in collaborative research and development, where the benefits may be to the supply chain as a whole, but the returns are not sufficient to justify investment by individual operators.
“More could be done through agencies such as the Technology Strategy Board and the Green Investment Bank to promote partnership working and provide pump-priming or underpinning funding.”
Kuyk said it was vital to offer processors additional streams of cash in view of the persistent demand for short term return on investment within the industry. “Although resource efficiency will often yield bottom line savings (good environmental practice makes good business sense) it is often a case of ‘spend to save’ in terms of capital investment. In current economic circumstances it can be difficult to finance such initiatives, particularly against short pay-back criteria.”
More favourable regulatory climate
The food and drink industry could also benefit from having a more favourable regulatory climate, he said. “FDF is also lobbying for more coherent and consistent energy and emissions policies which do not put UK businesses at a competitive disadvantage in international supply chains and which incentivise improved performance rather than imposing additional cost burdens on everyone.”
Kuyk also argued equal accountability across the entire food and drink supply chain would help improve green performance. “One potential hurdle is the lack of a genuine level playing field in international supply chains, where those working to less demanding environmental standards can gain commercial advantage and undercut those who trying to improve their sustainability.”
Right frameworks
Governments needed to set the right strategic and competitive frameworks within which businesses could deliver, he said. “For food security, we need joined-up policy making (at UK, EU and international levels) which makes increasing food production sustainably a priority in its own right, recognising also that food security cannot be achieved without water and energy security. We also need to ensure there are no perverse incentives or market distorting subsidies.
“A key point to note is that production has increased during this period, so we are successfully decoupling environmental impact from growth, which is key to a sustainable, green economy."
