The report highlights areas that require significant investment

The report highlights areas that require significant investment

September 7, 2024

The report, which also included five recommendations that could bring the food industry under a single government taskforce (see below), urged policymakers to invest in the future of food technology and adopt “advanced production strategies” to make food and drink manufacturing a sector of choice.

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Food manufacturing is the largest manufacturing sector and is integral to food security, according to the Strengthening UK Food Security report from Policy Exchange.The UK should extend its agri-tech strategy to a food security strategy, which includes food and drink manufacturing as well as retail, logistics and other aspects of the food ecosystem.

Food and Beverage Sustainability

The Department for Energy Security and Net Zero must include the sector to ensure its sustainability. This will make the UK's journey to net zero a key part of it.

A clear investment strategy was also important. The report recommended that the British Business Bank establish a Food Security Transformation Fund, which would focus on investing in technology across the food ecosystem to reduce the risks associated with costly capital investments.

The report goes on to say that such a fund could promote innovative solutions across the food ecosystem and contribute to food security “from agriculture to manufacturing, logistics, wholesale and retail, and hospitality.”

This would help accelerate the adoption of digital and robotic technologies, as well as automate food production. It would also unlock private sector investment.

The Ministry of Trade and Commerce should focus more on investment in technology and machinery, and should also target software companies that supply food and beverage manufacturers, as well as producers of machinery and equipment.

Innovation in the UK food and drink sector: four ways to boost it

He said: "Significant inward investment from these companies will strengthen the UK's food manufacturing base and help move away from primary production."

The report made four recommendations to boost innovation. These included converting the government's existing food production strategy into one focused on food ecosystem research, expanding the newly established agritech centre to become a food security centre to further support research and innovation, establishing a new food security research centre at a leading university and more targeted funding.

Karen Betts said the report revealed the challenges facing the UK's food and drink sector. She said it was important not to take for granted the country's current capacity to produce safe and sophisticated food and drink.

Betts said there are many challenges ahead that require investment to secure the future of our food system. These include the need to innovate to combat climate change, increase productivity, invest in new products and maintain reasonable prices for consumers and suppliers.

The Policy Exchange report makes five key recommendations for food and drink manufacturing in the UK.

The government should create a national food security strategy that encompasses all aspects of the food ecosystem. The national food security strategy should address all aspects of the food industry, such as manufacturing, logistics and wholesale. A Cabinet committee, or ministerial task force, should oversee the development of the national food security strategy, working with departments and agencies within government, as well as devolved authorities, to resolve policy conflicts between different departments.

  1. The government should develop a long-term vision that reduces regulatory uncertainty in the food system and provides confidence to invest. Uncertainty and short-termism hold the sector back, and it needs stability to invest. The inter-ministerial task force should lead this effort and integrate it into the national food security strategy to help create a climate that is resilient to shocks and provides healthy, affordable and sustainable food.
  2. Future industrial strategies and advanced manufacturing strategies must explicitly identify food and drink manufacturing as a priority sector. The food manufacturing industry is the largest manufacturing sector in the UK economy, accounting for almost 20 per cent of total manufacturing turnover. The sector provides good jobs in every region of the UK, employing 472,000 people. Food and drink manufacturing should be at the heart of any future industrial strategy to ensure the sustainability of the UK’s economic growth in the long term.
  3. UKRI Transforming Food Production should be expanded to Transforming Food Security. The UKRI Transforming Food Production challenge should be relaunched as Transforming Food Security. This would fund research across the entire food system, including investment in storage, logistics and retail.
  4. The Government should take a holistic view of trade policy and food security. Export promotion remains a key element of UK trade policy. However, taking into account imports from intermediate suppliers and the importance of their role will help to increase the resilience and sustainability of the UK’s food supply and system.
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