Summary

The Northwest Food & Drink Strategy for 2006-11 will enable the Food and Drink sector to turn its vision into reality. The new organisation will lead the development of the Action Plan for the six main priorities in the strategy. It will monitor the delivery of the Strategy and Action Plan and will regularly update and review the Action Plan. In particular this will contribute to the next review of the Northwest RES.

The Northwest Food & Drink Strategy for 2006-11 will need to be replaced by a new strategy no later than 2011. The new organisation should start the process to produce a new strategy no later than mid-2010.

Table 1

NW FOOD & DRINK STRATEGY – LINK TO RES ACTIONS

The key priorities identified in the strategy lead to the following key actions.

	KEY PRIORITY	RES ACTION REF.	RES ACTION
1	To develop value added activities to meet the changing consumer and supplier demands.	TA 8	Undertake cluster programmes in priority sectors to develop higher value activity, improve productivity and identify future growth opportunities from converging markets/technologies.
2	To increase the productivity of food businesses across the region by enhanced collaboration with science and technology, education and training and to meet their future needs by providing a skilled workforce	TA 12 TA 27	Enable businesses to understand and implement business process and product/service innovation, both internally and through their supply chains. Deliver the skills required by the priority sectors.
3	To improve the provision and access to healthier food for all sections of society in the Northwest.	RES 57	Identify, and contribute to minimizing or removing, the major causes of ill-health in the region, including tackling issues around mental ill-health and reducing the level of incapacity benefit claimants.
4	To identify and promote the benefits to business of achieving environmental sustainability	TA 23	Improve Business Resource Efficiency and Waste minimization (BREW) support to business including:- sustainable procurement, overcoming barriers to new energy and waste technologies and reuse and recycling of materials.
5	To promote a prosperous sustainable farming and food sector that contributes to the environment and social well being of the region	TA 56 RES 118	Implement plans to ensure ongoing growth in the rural economy as part of the Regional Rural Delivery Framework. Promote sustainable farming and food production and its role in the management of rural environmental assets.
6	To promote a positive image of the Food and Drink sector and its contribution to the image of the Northwest as a place to be.	RES 95	Develop and implement marketing programmes to promote a positive image of the benefits and diversity of the Northwest as a location for businesses, visitors, investors and as a place to live.

ANNEX 1

Other Facts and Figures

In 2004, the contribution of the food sector to the whole UK economy GVA accounted for £80.3bn, 7.7% of the total. GVA for the food sector grew by 39.5% between 1995 and 2004 compared with the growth of GVA for the whole economy of 63.0% over the same period.

Growth in the agriculture and food processing industries is not keeping pace with that of the whole economy, while the hotels, catering and pubs industry was the sixth fastest growing industry between 1992 and 2004.

Household spending on all food sector products was £173.3bn in 2004, up 74.6% between 1992 and 2004. ONS - UK Input-Output Analyses, 2006

Changes in Consumer Demands

Cultural changes in food consumption, with people eating out more regularly and enjoying a wider range of cuisine, continue to have an impact on the UK economy. Household spending on fresh and processed food and drink products was £85.8bn in 2004, up 53.4% between 1992 and 2004. Over the same period, spending on food and drink products consumed outside the home grew by 102.2%, to £87.5bn in 2004. ONS - UK Input-Output Analyses, 2006

Health Aspects of Food

The health status of people in the Northwest is poor, in contrast with other regions. Poor food and nutrition is a major factor in much of this ill health. Of all Local Authorities in England and Wales, Manchester, Blackpool and Liverpool have the lowest male life expectancy at around 72-73 years compared to the national average (England and Wales) of 76.5 years, whilst Manchester and Liverpool have the lowest female life expectancy at around 78 years compared to the national average of 80.8 years. In 2002-2004, around half of all Northwest Local Authorities were in the worst quintile nationally for male and female life expectancy at birth. (Wood et al, 2006)

Most of the Merseyside and Greater Manchester conurbations, Lancashire towns, and Barrow- in-Furness were shown in the 2001 census to fall in the top category of local authorities where between 11% and 18% of the population rate their health as not good. (Investment for Health, 2003)

The Northwest is one of the most deprived in England and has significant health inequalities, which despite public health initiatives are still widening. Inequalities occur within local authorities, gender, social groups, ethnic groups, age groups, and in different causes of death.

People living in the more deprived areas and low income families have the worst diets and consume more foods that are high in fat, sugar and salt. On average, men and women in benefit households consume fewer portions of fruit and vegetables per day (2.1 and 1.9 respectively) than those in non-benefit households (2.8 and 3.1 respectively). (National Diet and Nutrition Survey, 2002)

North West Food & Health Action Plan - Supporting Document 2006

Demand for more Premium Food

The visitor economy is worth some £7bn per annum to the region (7% of the economy). 2006 RES

Food Offering Good Value for Money

Polarisation of incomes manifests itself in the widening gap between the affluent and poor, with the middle income “mass” market being squeezed. This will result in demand growing for both premium and economy food products. The economy end of the food market is expected to increase from around 10% in 2000 to around 25 – 30% in 2010. North West Food and Drink Cluster Study – Promar 2002

Globalisation

Foreign direct investment accounts for 16% of the Northwest economy. 2006 RES

Major international gateways in Manchester and Liverpool John Lennon airports (projected to grow to 50 and 12 million passengers per annum respectively). 2006 RES

The Port of Liverpool is a major national deep sea gateway. 2006 RES

Multicultural Society

10% of small and medium sized enterprises in the Northwest are ethnic minority businesses. 2006 RES

Technology Development

The Northwest attracts 12.7% of total business R&D. 2006 RES (Although this is dominated by pharmaceuticals R&D)

Business Innovation

The Northwest has 18% fewer businesses (per 10,000 adults) than the England average. 2006 RES

The foundation of firms in the Northwest needs to rise to 21,000 per annum. 2006 RES

Growth in Food businesses in Merseyside in 2004 was greater than for Merseyside as a whole, 16.8% compared to 12.5%. Betamodel 2004

Businesses in the Food sector in Merseyside last longer on average, than for all businesses in Merseyside. 82% of food businesses were still active after 2 years compared to 75% of all businesses, 65% of food businesses were still active after 5 years compared to 59% of all businesses. Betamodel 2004

There are more micro-enterprises in the food sector than in Merseyside as a whole. 58.8% of food businesses employ 1 to 5 people compared to 51.3% of all businesses. Betamodel 2004

Skilled Workforce

The Northwest employment rate is 73%, 2% behind England. The Northwest would need 80,000 more people in work to bridge the gap. 2006 RES

Population projections show a 12% drop in the number of young people in the region compared to a 7% decline in England. 2006 RES

Graduates are under-represented in the workforce. 26.9% of those active in the labour market are qualified to level 4, compared to 28.3% in England – a gap of 80,000 people. 2006 RES

Employment in the Food sector in Merseyside in 2004 grew faster than for Merseyside as a whole, 8.1% compared to 7.7%. Betamodel 2004

“Food Miles”

The UK food industry accounts for 25% of all HGV vehicle kilometres in the UK. . Sustainable Farming and Food Strategy: Forward Look

CAP Reform

The rural economy accounts for 23% of the region’s GVA and 40% of all firms. 2006 RES

Environment, Sustainability and Legislation

The UK food industry accounts for: about 14% of UK business energy consumption and 7 million tonnes of carbon emissions per year; about 10% of all industrial use of the public water supply; and about 10% of the industrial and commercial waste stream.

The agricultural sector also contributes 7% of the UK’s total Greenhouse Gas emissions (47% of the UK’s methane emissions and 67% of nitrous oxide).

Over 60 % of nitrates, up to 40 % of phosphorus and the majority of silt in UK waters is due to agriculture.

85% of ammonia emissions, which are becoming the main driver of air pollution impacts on remote UK ecosystems, come from farming. Sustainable Farming and Food Strategy: Forward Look

Image

62% of business and opinion leaders from outside the region view the Northwest as a good business location compared to 71% in the region. 2006 RES