Promoting Fair Competition
It is difficult for our farmers to compete with imports from countries where production standards – and therefore costs - are lower. As we continue the process of trade liberalisation, competition will intensify, and it is the job of Government to ensure that our farmers can prosper in truly open markets.
Around £2 billion of public money is spent on food and catering every year. We believe the Government should use their substantial purchasing power to support British producers wherever possible and without increasing overall costs, and in doing so stimulate the rural economy, reduce food miles, and improve nutritional standards.
A 2009 study by Deloitte found no reports of cost increases from those practitioners increasing their procurement of UK and regional produce. Indeed, there were examples of cost decreases when there was an increase inthe procurement of UK, regional, seasonal, farm assured and local supplier produce. However, despite this, official figures indicate that not a single rasher of bacon served to our armed forces is British and in some Government departments the proportion of homegrown food is actually falling.
We will ensure that all food served in Government departments meets British standards of production, wherever this can be delivered without increasing overall costs.
We will work to extend this policy across the public sector and have established an advisory group to encourage sustainable local procurement.
Conservatives are committed to helping our farmers develop and harness growing consumer interest in how food is produced and where it comes from. Under current legislation, meat can be imported into the UK, processed here and then labelled as British. This is unacceptable. It undermines efforts to improve animal welfare, it misleads consumers and it hurts our farmers.
Labour has branded current rules unfair but blocked attempts to improve country of origin labelling at a European level and failed to secure an effective voluntary agreement with retailers. By contrast, the Conservative Honest Food campaign, with strong public support, has won the backing of major supermarkets who are changing their food labels to provide clearer information to consumers.
We will continue to press for a comprehensive voluntary agreement on country of origin labelling but will introduce legislation if this cannot be reached whilst pushing for EU-wide adoption of such rules.
Supermarkets provide consumers with a rich variety of choice and convenience, however the competition authorities have made clear that some aspects of the way retailers deal with their suppliers could, if left unchecked,also harm consumers. We are concerned that some supply chain practices could impact on suppliers’ willingness to invest, which may in turn reduce product quality and ultimately consumer choice. A study by Cardiff Business School suggests that this could lead to higher prices for consumers in the long run.
We will introduce an independent supermarket ombudsman, as a ringfenced unit within the Office of Fair Trading, to enforce the Grocery Supply Code of Practice.
As well as ensuring that supermarket practices are fair and in the longterm interests of consumers, we must enable farmers to work together togive them more clout in the marketplace. There is currently concern that the UK is being disadvantaged by an approach which is preventing necessary consolidation in the supply chain and inhibiting competition with overseas giants, such as Arla and Danish Crown, who enjoy much larger market shares.
The collapse of Dairy Farmers of Britain last year was a blow to a considerable number of farmers but it must not be allowed to undermine the development of co-operatives, which we want to see flourish throughout the economy.
We also recognise the importance of local food groups and farmers’ markets to reconnect people and food. These initiatives support local growers, provide good affordable food, help protect the environment and improvelocal communities.
We will ensure that the legislation relating to co-operatives does not restrict the competitiveness of farmer-owned businesses and will do everything we can to encourage their development.
We will promote the expansion of local food networks for both retailand wholesale trade so that domestic and service sectors such as schools can obtain consistent and sufficient supplies of locally produced food.
In recent years a shortage of agricultural labour has resulted in significant crop losses and there is uncertainty over the future of the Seasonal Agricultural Workers Scheme, which allows farmers and growers in the UK to recruit overseas workers to undertake short-term agricultural work.
We will ensure that arrangements are in place which reflect the importance to the economy of seasonal agricultural labour.