New Farming Strategy - What's in it?

Archived

Friday, 13 December 2002

The government's new strategy for food and farming published yesterday contained few surprises and was immediately attacked as long on rhetoric but short on delivery by the opposition and farming and environmental groups.

The prime minister gave his backing to the launch of the strategy - which pulls together packages which have mostly been announced already - at a meeting of farming and food industry leaders in Downing Street and said it represented "transformed thinking". But its failure to tackle the power of the supermarkets, despite Mr Blair's promise during the foot and mouth crisis to break what he called their "armlock" on farmers, was widely criticised.

"This leaves a gaping hole because it gives no proper attention to the role of intermediaries between the farmer and the consumer, in particular to retailers. The percentage of the price we pay that ends up with the farmer has been falling over 10 years as supermarkets have gobbled up more and more of the profits," said Paul Tyler, the Liberal Democrat MP for North Cornwall.

WHAT'S IN THE POLICY?

£500 over three years
The government reiterated its spending review commitment to give £500m over three years to the rescue package recommended by the Curry commission last January.

Who's eating the cake
Much space is given in the strategy to an analysis of the current crisis in farming. Consumers spend £68bn on food and drink to consume at home a year. Farmers and primary producers take £6.5bn, while food manufacturing is worth £19.4bn and retailers' slice is £16.6bn.

£150m for the environment
A £150m agri-environment scheme of subsidies will pay farmers for protecting the environment rather than just for producing food. It will be piloted first in a few areas.

Rebuilding the food chain
The new food chain centre, already announced, and administered by the supermarket-dominated Institute of Grocery Distribution, is to look at how farmers might be allowed to keep more of the price consumers pay for food.

Supermarket monitoring
The office of fair trading will review every six months how the four largest supermarkets are abiding by the voluntary code of practice to prevent abuses of buying power.

Farmers' cooperatives
The government will provide capital grants to set up collaborative boards to give farmers increased muscle when selling to big retailers and manufacturers.

New audits of farms
A new audit system would require farmers to produce whole farm business plans.

Organic plan
The action plan for organic production in England has set aside £5m over five years for research and set targets to increase organic food sales.

Animal welfare bill
Tackling illegal imports will be a priority.

Source: Felicity Lawrence, The Guardian
Friday December 13, 2002. For full article visit: http://www.guardian.co.uk/guardianpolitics/story/0,3605,859154,00.html