Food System Impacts of COVID-19

Lead Research Organisation: University of Exeter
Department Name: Sociology, Philosophy, Anthropology

Abstract

From panic buying to shortages, real or perceived, COVID-19 is leaving its mark on the food system. Whilst media attention has been on retail, the shock has also been felt in the food manufacture, processing, packaging and distribution sectors. In the first weeks of lock-down there have been cases of milk companies cancelling contracts with farmers but other companies have experienced increased demand from supermarket outlets. Fishermen have seen the demand for seafood from the restaurant trade in the UK and the EU dry up. Some are seeking to establish new retail outlets such as home delivery, others are reported not to be fishing. We need to know very rapidly how the supply chain for dairy, fish, flour, fruit and vegetables, and meat is adapting. Critically, what steps might be required to ensure food continues to reach shops and that there is fairness for food workers and for consumers? We will work with a panel of experts to gain and share information about food supplies, and we will interview those working in the industry. Our monthly bulletins will highlight both good practice and areas of concern as we work towards a resilient and fair food system in the crisis.

Publications

10 25 50
 
Description Four key research findings:

1. A single series of events, notably the lockdown in response to the first wave of the COVID-19 pandemic, gave rise to radically divergent views of the nature of the impact on the food system. Some commentators argued that the food supply chain had demonstrated a high degree of resilience but others claimed the pandemic had highlighted the fragility and vulnerability of the UK food system. Unpacking further and fully understanding this early finding became a core theme in our research. Many of the fault lines were ideological: for some, the response to COVID demonstrated the logistical successes of the supermarkets and a global 'just-in-time' supply chain. But for others, COVID became a lens through which to examine afresh the perceived ills of the UK food system and to promote potential remedies. There is, in the UK, a well-established narrative that is highly critical of many aspects of the UK food system covering characteristics such as the dominance of a small number of large retailers, the high incidence of diet-related illness, dependence on food imports, a lack of connection between food producers and consumers and unsustainable production methods in farming. All these issues were given prominence during the unfolding pandemic.

2. We found that the complexity of the food system is often under-estimated in the literature. It is not surprising therefore that there were indeed some winners and some losers as the food system adapted to radical market changes, notably the decline of the hospitality sector. What some saw as a supply-side success story has to be carefully segmented to see how some businesses adapted better than others; dependent on market and segment supplied, scale and diversity of operation, geographical location and the ability to find alternative routes to market, such as through home deliveries to online sales.

3. We also found that conventional analyses of the food system have given far too little attention to the 'missing middle' between production and retail, which covers the processing, manufacture, packaging, wholesale and transportation of foods. The performance and adaptability of many businesses in these sectors was vital to adequate food provisioning during lockdown and it is also where many of the pressure points could be identified with regards to labour shortages induced by COVID absences and later the so-called "pingdemic".

4. As our research continued, it became increasingly clear that factors other than the pandemic have greatly influenced the food system and food supply chain since the pandemic hit in early 2020. In particular, the interplay between COVID and Brexit has presented us with analytical challenges, which we continue to grapple with as we develop findings for publication. We embarked on the research project in the midst of a tight lockdown when COVID induced changes dominated the food system. We did not anticipate the changing and episodic nature of the pandemic and the inter-weaving with other factors such as Brexit.
Exploitation Route Too early to say. We are writing a book that we hope will inform a wide public abut the complexities of the food system.
Sectors Agriculture, Food and Drink

URL http://sites.exeter.ac.uk/foodsystemimpactscv19/
 
Description We produce a monthly bulletin and website blogs used by stakeholders.
First Year Of Impact 2020
Sector Agriculture, Food and Drink
Impact Types Policy & public services

 
Description UKRI Covid-19 Projects on the Food System
Amount £24,999 (GBP)
Organisation Biotechnology and Biological Sciences Research Council (BBSRC) 
Sector Public
Country United Kingdom
Start 03/2021 
End 07/2021
 
Title COVID and Brexit Food Business Survey 2021. Collection ID: 855450. 
Description Data submitted 24th Feb 2022 at 09:54 to UK Data Service. SPSS results of food business survey 
Type Of Material Database/Collection of data 
Year Produced 2022 
Provided To Others? Yes  
Impact none to report 
 
Title Covid Food Business Barometer Survey 2020. Data Collection ID: 855453. 
Description Data submitted 24th Feb 2022 at 09:43 to UK Data Service. SPSS field for survey of food businesses. 
Type Of Material Database/Collection of data 
Year Produced 2022 
Provided To Others? Yes  
Impact none to report 
 
Description 5th Expert Panel meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Other audiences
Results and Impact The meeting d focused on the flour sector and food packaging.

A boom in home-baking at the start of the first national lockdown led to an estimated five to tenfold increase in retail demand for flour. Whilst this has since dropped off, it appears that there may be a real increase in demand of 10% to 15% in the longer term. However, overall demand for flour was flat. Retail demand was up, as was demand from food manufacturers and bakers, but the loss of the out of home sector was considerable.

A consequence of this increase in retail demand is that some millers have invested in small bagging machinery, and many have thought about how they can sell direct to the consumer. The milling sector faced many of the same challenges that were faced by other sectors (e.g. supply of PPE that is required for mill maintenance) but one particular challenge was due to the fact that many smaller businesses were under particular pressure because one person may have 3 or 4 different roles within that business.

Packaging shortages were felt across all sectors, not just milling. Many of the packaging issues were due to the fact that much packaging is pre-printed and some businesses may not have had the right packaging available for the right product at the right time. This was a big reason behind the reduction in product range in supermarkets - producers concentrated on products they knew they could get packaging for. With much packaging pre-printed with ingredient lists, this meant that if ingredients needed to be substituted due to sourcing issues, your packaging would be illegal and potentially have implications for consumer Health and Safety.

There were also challenges around the minor packaging ingredients, for example adhesives and packaging gases.

There was also a discussion about the almost conflicting position of an increased concern and desire for packaging due to perceived risk of transmission of Covid, but also an increasing awareness of sustainability and the environment. However, the overriding issue was more practical and concerned shelf life, preventing waste and continuation of supply rather than being driven one way or the other by sustainability concerns.
Year(s) Of Engagement Activity 2020
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/AA199167776D3DED2540EF23F30FEDED
 
Description 6th Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact The meeting t focused on the impacts of the more severe tier system in England (December 2020) and the third national lockdown (January 2021), and Tim Wilkinson also presented summary results to the panel of the food barometer survey that was carried out at the end of 2020.

There was much discussion about the pre-Christmas haulage issues, particularly in relation to goods stuck at Dover, following the closure of French borders due to the 'Kent variant' of Covid-19. This was a crisis for the industry, and the effects are ongoing. It was in the main left to the businesses themselves to resolve issues regarding the newly-required Covid-19 tests and the guidance issued by the UK government was criticised on many levels.

On the consumer side of things, the effect of the new restrictions was to bring forward the date people did their big Christmas shop by a few days. This led to uncertainty for retailers, who didn't know if the earlier increased sales were people stocking up, or people doing their actual Christmas shop. As a result, they had to maintain stock levels which ultimately resulted in product wastage. In addition, with the new restrictions on movement within the UK, many people cancelled or amended food orders which again led to food waste.

There was an interesting discussion about the impact of continuing lockdowns on the wholesale sector, which is disproportionately affected by the uncertainty created from last-minute government decisions, including those on Christmas travel and school closures. The short-term impact was the creation of a huge amount of excess stock, some of which was short life. There has been minimal support for this sector and it is the point in the supply chain that has been hit the most throughout the pandemic, particularly for those who principally supply the hospitality industry. Whilst many businesses remain open to supply care homes, hospitals and vulnerable rural communities, many are operating at a loss. For many, reserves have been exhausted and business loans taken out a year ago will start to have to be repaid. In addition, business interruption insurance is largely excluding wholesalers from claiming.

It was also noted the difference in support for the wholesale sector between the UK nations. The Scottish and Welsh governments have managed support packages and claims centrally, whilst in England, support is discretionary and lies with local authorities.

For a summary of the results of the food business barometer survey, please refer to the piece by Tim Wilkinson in last month's bulletin.
Year(s) Of Engagement Activity 2021
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/6BFABE29E1D006332540EF23F30FEDED
 
Description 7th Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact The meeting focused on the impacts of Covid-19 on the UK meat sector. There was also a panel discussion on the open letter on the food emergency that Professors Tim Lang, Erik Millstone and Terry Marsden sent to the Prime Minister and government on 29th January 2021.

Regarding the impacts of Covid-19 on the UK meat sector, the following items were discussed:



1. The carcase balance crisis and how this was experienced differently across the beef, pork and sheep meat sectors and respective supply chains.

Beef carcase unbalance was caused due to a greater demand for mince and diced cuts rather than steak and other prime cuts. Intervention came in the form of the levy boards working together and establishing the 'Make it Steak' campaign, alongside various campaigns to encourage people to cook their own 'restaurant experience' at home.

Most lamb is eaten out of the home in the UK, but the issues were less severe than for beef due to the demand for halal lamb in the UK and the fact that the carcase value of a lamb is lower than that of a cow.

As the UK is not self-sufficient in pork, the issue was not as acute for pork.

Carcase unbalance was initially experienced due to the impacts of Covid-19 in the UK, but were compounded as exports to other markets (EU and China) slowed down or were delayed and/or stopped.



2. The impact of Covid-19 on catering butchers

Many catering butchers moved quite quickly to click and collect and home delivery services and some moved to markets and farmers markets. This kept sales going, but didn't replace what sales had been lost due to smaller order sizes and margins. Meat box sales also took off.

There were also various interventions regarding private storage aid for unsold meat.



3. The impact of Covid-19 on labour

Most businesses have relatively stable and resilient workforces that they have invested in and who are now settled in the UK, so there was little impact here. There was an issue with getting the guidance translated, and into which languages. A rationalisation of SKUs within the meat industry simplified production lines relieving some pressures on labour.



4. Covid-19 in meat processing plants and associated media coverage

The vast majority of incidences of Covid-19 were community-based, not plant-based. Plants made significant capital investment to mitigate these problems, as the impacts for a plant if it had to shut down were significant not only for the plant itself, but for other parts of the supply chain. The incidence was extremely low compared to perception but was compounded by an anti-meat narrative.



5. The financial impacts of Covid-19 on the UK meat sector

2020 turned out to be a good year for a lot of people in the meat sector with a rise in both retail sales and farm gate prices.

Those who haven't fared so well include catering butchers who supply solely pubs, hotels and restaurants. There has been little government support for them beyond the furlough scheme.



6. The ongoing impacts of Covid-19 on the UK meat sector in the light of the impacts associated with Brexit

Covid is fast moving and it is likely that there will be further sporadic outbreaks within the industry. Many businesses have adapted to working with Covid, so its impacts are felt less. In January, Brexit overtook Covid as the immediate issue due to problems with exports, mainly paperwork issues and the additional time that the export process takes.

Over the next few years, the combined effects of Covid, Brexit and the threat from cheaper imports are likely to add up to transformational change for the industry.



The meeting concluded with a discussion of the open letter.
Year(s) Of Engagement Activity 2021
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/EC1FC33BDE0EF00A2540EF23F30FEDED
 
Description 8th Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact The meeting focused on two main discussion points:

The reopening of hospitality
Ongoing impacts of Covid-19 on the seafood sector
1. The Reopening of Hospitality

There is likely to be pent-up consumer demand for out-of-home eating and drinking although this may fluctuate meaning that businesses across the supply chain will need to remain agile. Many wholesalers are proposing limited SKUs (Stock Keeping Units) and hospitality venues shorter menus. Reopening is also dependent on weather, the progression of the route out of lockdown, the vaccine rollout, the impact of any rise in infection levels and staff availability.

All parts of the supply chain have borne the cost of multiple closures and reopenings and are carrying debt, and many won't make a profit until full reopening (currently June 2021). Stock waste in the first quarter of 2021, due to products being close to or past BBE date, has been valued at £30 million. Smaller businesses may be more risk averse than larger businesses, which have more cushion and flexibility.

Cash flow is going to be critical over the next 6 to 12 months. The Trade Credit Insurance scheme is due to finish at the end of June and will expose many wholesalers, and those who supply into wholesale, to additional risk. If the scheme is extended, there's a need for the insurers to use the scheme and underwrite the sector.

Some interesting questions to ponder:

Will brands that have started selling in retail space (e.g. Pret) continue to do so?
Will business shift away from food delivery services, which saw such a massive upturn during lockdown?
2. The Seafood Sector

The discussion focused on two periods:

i). Tail end of December 2020:
The panel was referred to the Seafish reports on the impacts of Covid-19 on the sector. In summary, there seemed to be a lot of uncertainty and volatility. The Covid-19 impacts were varied and resulted in mixed fortunes across the sector including geographical variations, produce destination (retail or food service), species, capture fish vs aquaculture, etc. There was a degree of adaptation, but this varied in extent and success, and also in how long it lasted. Some parts of the supply chain have embraced direct selling and see it as a viable part of their business going forward.

In general, short shelf life products, particularly those going into hospitality or food service were heavily impacted. Longer shelf life products and larger scale operations were impacted in a positive way in that demand went up, although there were some supply issues due, in part to disruptions to the global supply chain, particularly container traffic into and out of China.

ii.) January 2021 onwards:
It has been a challenge to unpick the Covid-19 effect on top of trade disruption, however in January 2021 the bulk of the impact on the seafood sector was due to Brexit challenges, in particular for smaller producers using a groupage system. There was an 83% fall in shellfish exports and seafood product exports in general were at about 40% of previous year's level. Competitive advantage has decreased due to produce taking longer to arrive at its destination and costs have gone up by about 10% due to increased administration. It took the first 2-4 weeks to understand what was going on and how it was playing out in reality and it has become clear that these problems are systemic, not just teething problems, with no way of knowing how they will unwind. The combination of bureaucracy, delay, rules of origin, etc. add up to a complex package. Not every business was trying to trade - some quickly stopped (too chaotic); some groupage systems had to temporarily close down. There were issues with products not arriving on time and having to be destroyed; some products didn't leave the UK and had to be diverted into other markets, possibly at a lower price, or frozen (lost value). Some consumers were losing confidence in UK suppliers if they weren't getting the quality and quantity required.

These markets won't be lost indefinitely. Trade will continue, it's just harder, and will come at a cost to UK traders. Some suppliers are setting up distribution companies in the EU: they export directly to their subsidiary who then distributes onwards. This simplifies the paperwork, but it also alters the VAT implications. The bottom line is that it is not as profitable as it has been, and it won't be in the future.

In addition, the Asian market for crab and shellfish has been disrupted since Autumn 2019.

It was noted that we import 65% of the fish and seafood that we eat in the UK and import controls have been phased, so are not a mirror image of exports.
Year(s) Of Engagement Activity 2021
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/C779F1951345A9B22540EF23F30FEDED
 
Description First Meeting of Expert Panel 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact The opening meeting of the Expert Panel covered these topics:
Project Background
Purpose of Expert Panel
Any questions on the Terms of Reference
How the Expert Panel will work
Panel anonymity and confidentiality
Panel round-table discussion
What impacts on your businesses or interest?
How have these been dealt with?
Gaps in Expert Panel representation
Introducing the Website
Looking ahead
Future meetings - suggestions on topics
Year(s) Of Engagement Activity 2020
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/14FED12A9D663B972540EF23F30FEDED
 
Description Fourth Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach Regional
Primary Audience Industry/Business
Results and Impact The meeting focused on the impacts of CV-19 on the fruit and veg sector, and also looked at the business survey the project team planned to send out in late-November.

There were three key questions about the impact of CV-19 on the fruit and veg sector:

1. How, and to what extent, did the impact of CV-19 differ across fruit and veg sub-sectors and scale and location of operation?

In general, the fruit and veg sector performed better than anticipated due to sizeable demand and opportunities for domestic supplies arising from some problems importing produce. There were, inevitably, variations across businesses depending on whether they were packing for retail or destined for food service. For those whose market no longer existed, some began supplying to box schemes, whilst others quickly built their own B2C platforms. There was no targeted government support for this sector, like there was for the dairy industry.


2. To what extent did the impact of CV-19 expose the UK's reliance on both EU imports and migrant labour as a point of acute vulnerability?

Whilst there were glitches in international trade, the supply chain was more resilient than people had thought it would be.

Early news of the pandemic from China meant that many businesses were already looking at stabilising their work force. By the time lockdown came, many had already secured their labour but they were physically unable to get workers into the UK due to borders closing. It became apparent that there was already more seasonal labour in the UK than people had thought (e.g. Daffodil pickers who were looking for ongoing work).

However, workers needed to be reassured, as did the local communities in which they lived. There were some schemes to encourage people to sign up to 'pick for Britain', however the bulk of labour was not required until June, and by then migrant labour had begun to arrive in the UK. There were some success stories in terms of employing UK people - e.g. diverting from construction industry to picking.


3. Do you think the crisis will result in any long-term shifts in consumer behaviour and attitudes to fruit and veg consumption and production?

Whilst sales of fruit and veg increased massively, so did waste, and it is not certain how much of what was bought was actually consumed. There was a boom in scratch-cooking as people focused on their health, but the drive to 'cook your own' has since tailed off and it remains to be seen to what extent this habit will be retained long-term.

Regarding new business models that were introduced, these appear to be more permanent in the fruit and veg sector than in some other sectors and whilst some will return to their traditional wholesale and food service markets, others now have new business models that they will retain.

The increase in sales and demand may not however translate into more produce being grown in the UK. This is mainly down to margins at producer level and the weather-related challenges of variable growing conditions and subsequent yield.
Year(s) Of Engagement Activity 2020
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/E2D76408FDEBDD942540EF23F30FEDED/...
 
Description Lecture to MA Food Studies students 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Postgraduate students
Results and Impact Overview of the project, methods, plus case studies of impact on dairy and fish sectors.
Year(s) Of Engagement Activity 2021
 
Description Monthly Bulletins Nos 1-13 
Form Of Engagement Activity A magazine, newsletter or online publication
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact CONTENTS
1. THE IMPACT OF COVID-19 ON THE FOOD SYSYTEM \ ABOUT THE PROJECT \ MEET THE PROJECT TEAM \ INTRODUCING THE EXPERT PANEL \ COVID-19 AND THE FOOD SYSTEM: 12 INTERESTING ARTICLES \ SIGNPOSTS \ FIND OUT MORE

2. THE NATIONAL FOOD STRATEGY: PART ONE - AN INITIAL ASSESSMENT \ EXPERT PANEL MEETING 1 - SUMMARY \ MEDIA WATCH \ PROJECT NEWS BITES \ SIGNPOSTS \ FIND OUT MORE

3. PIONEERING PACKAGING FOR SAUSAGES + WILD VENISON CONSUMPTION AND WOODLAND MANAGEMENT \ EXPERT PANEL MEETING 2: SUMMARY \ MEDIA WATCH: COVID PANIC BUYING 2.0? \ A DEGREE OF HUNGER: COVID, FOOD INSECURITY + HIGHER EDUCATION \ SIGNPOSTS \ FIND OUT MORE

4. SURVEY DESIGN AS LOCKDOWN RULES CHANGE \ MEAT AGAIN! \ EXPERT PANEL MEETING 3: SUMMARY \ BAKING FOR STRESS-RELIEF DURING A PANDEMIC \ ECONOMIC IMPACTS, BUSINESS CONFIDENCE AND LOCAL LOCKDOWNS \ MEDIA WATCH: IT'S NOT JUST ABOUT COVID - FOOD IN THE NEWS \ SIGNPOSTS \ FIND OUT MORE

5. ONLINE FOOD BUSINESS BAROMETER SURVEY LAUNCHED \ MAPPING THE UK FOOD SYSTEM - A REVIEW \ EXPERT PANEL MEETING 4 - SUMMARY \ LOCKDOWN 2.0 \ THE IMPACT OF COVID-19 ON THE UK FRESH FOOD SUPPLY CHAIN \ SIGNPOSTS \ FIND OUT MORE

6. ONLINE FOOD BUSINESS BAROMETER SURVEY UPDATE \ A NEW CONSUMER WORLD VIEW? \ EXPERT PANEL MEETING 5 - SUMMARY \ SIGNPOSTS \ FIND OUT MORE

7. COVID FOOD BUSINESS BAROMETER - SUMMARY OF RESULTS FROM A SHORT SURVEY IN LATE 2020 \ THE PLIGHT OF WHOLESALERS \ THE FOOTBALLER AND FOOD \ HOW CAN WE BUILD BACK BETTER AND WHAT'S THE ROLE OF PLANT-BASED DIETS? \ SIGNPOSTS \ FIND OUT MORE

8. SO HAS DIET CHANGED AS A RESULT OF COVID-19? \ THE SOUTH WEST FARM SURVEY 2020 \ EXPERT PANEL MEETING 6 - SUMMARY \ HOW CAN WE UNDERSTAND THE COMPLEXITY OF THE FOOD SYSTEM? \ SIGNPOSTS \ FIND OUT MORE

9. HOW SHOULD THE MEAT FOOD CHAIN BE REGULATED? \ GOVERNMENT SUPPORT FOR FOOD WHOLESALERS \ A PROMISING CAREER IN \ TRADE AND AGRICULTURE COMMISSION REPORT: 'BOLD VISION' OR 'HOLLOW' PROMISES \ SIGNPOSTS \ FIND OUT MORE

10. REOPENING OF HOSPITALITY \ ENVIRONMENT, FOOD AND RURAL AFFAIRS SELECT COMMITTEE REPORT \ UN FOOD SYSTEMS SUMMIT 2021 \ SIGNPOSTS \ FIND OUT MORE

11. A BIT LATE, BUT SOME MORE THOUGHTS ON THE LABOUR QUESTION \ EXPERT PANEL MEETING 7 - SUMMARY \ EXPERIENCES OF GOING OUT TO EAT \ CONSUMER TRENDS IN THE POST-COVID WORLD \ SIGNPOSTS \ FIND OUT MORE

12. LABOUR SHORTAGES IN THE FOOD CHAINS: COVID, BREXIT OR BOTH? \ EXPERT PANEL MEETING 9 - SUMMARY \ SOUTH WEST FARM SURVEY 2020: SELECTED RESULTS \ FURTHER CONSIDERATIONS AROUND LABOUR IN AGRICULTURE: EXAMINING LABOUR ISSUES AND WORKFORCE SOLUTIONS \ GOOD FOOD ENTERPRISES: ADAPTING TO THE PANDEMIC, ONE YEAR - A SUMMARY/COMMENTARY \ THE NATIONAL FOOD STRATEGY: RURAL COMMUNITIES, URBAN FOOD AND GOOD FOOD JOBS. WHAT CAN BE DONE? - A NOTE \ SIGNPOSTS \ FIND OUT MORE

13. NATIONAL FOOD STRATEGY 2021: A QUICK OUTLINE \ BROWN CRAB AND THE TRIPLE CHALLENGE OF CADMIUM, COVID, AND BREXIT \ DARK KITCHENS \ SIGNPOSTS \ FIND OUT MORE
Year(s) Of Engagement Activity 2020,2021
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/525AE9DCAD8AE4232540EF23F30FEDED
 
Description Second Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact Main discussion points:

Dairy Supply Chain
There was significant short-term disruption to the dairy supply chain and it was estimated that 1 million litres of milk were poured away between 6th and 20th April. However, producers quickly found alternative uses for milk thanks to resilience, cooperation and collaboration within the industry. The relaxation of competition law, whilst useful, came too late. The dairy response fund was equally appreciated, but some of the worst affected farmers weren't eligible for the scheme. Although the market has recovered volumes, Covid-19 has taken the value out of the market.

In-home Eating and Home-baking
Whilst too early to draw conclusions on the future direction of consumer trends with regard to in-home eating, it appeared that people are now shifting away from home-baking (note also the impact of the NFS focus on obesity) however the emphasis on home-, or scratch-, cooking is starting to look like a permanent trend. Consumer confidence about eating out of home is nowhere near previous levels and eating out is very much a discretionary expenditure in times of economic uncertainty for many.

New Routes to Market
Traditional sit-down restaurants experimented with food delivery and some food producers and processors also started to sell direct to customers in an attempt to think of other ways to capture the market. This crisis has brought innovation to sectors that wouldn't have previously moved in this direction. There was a mixed motive here - not only to find a route to market, but also to dispose of stock that would otherwise have gone to waste.

Online Grocery Ordering
The shift to online ordering of groceries saw a shift to people purchasing basic items rather than luxury or impulse purchases. Sales of block and pre-pack cheeses rose hugely whereas sales of artisan cheese dropped off. Whilst the switch to online shopping was an enforced switch for many people, it is not yet clear if this will become a permanent switch. This raises some interesting questions for retailers - there is a smaller margin on food delivery due to increased costs and there are also new entrants such as Amazon and QVC stepping into the online grocery delivery market.

In-store Grocery Purchasing
Farm shops appeared to fare reasonably well - whether a question of consumer psychology, an increase in holidaymakers buying from farm shops in order to treat themselves in their holiday accommodation rather than going out to eat in restaurants and cafes, or a combination of both. There remains a question about the long-term future of supermarket deli counters which are less profitable than pre-pack sales
Year(s) Of Engagement Activity 2020
URL https://centreforruralpolicyresearch.createsend1.com/t/ViewEmail/r/B2179F4C8D4D99FB2540EF23F30FEDED
 
Description Talk to Campden BRI 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Industry/Business
Results and Impact Campden BRI has over 2,400 member food companies in 75 countries, for whom Campden provides a wide range of analysis and testing services and operational support underpinned by a vigorous programme of
research and innovation and promoted through extensive knowledge management activities.

The talk to one of their regular meetings for members covered project aims, methods and an overview of some of the findings on the meat sector.
Year(s) Of Engagement Activity 2020
 
Description Talk to Cornwall & Isles of Scilly LEP Rural Sub Group 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach Regional
Primary Audience Industry/Business
Results and Impact Presentation covering overview of project, objectives, and methods.
Year(s) Of Engagement Activity 2020
 
Description Talk to NFU local branch meeting 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach Local
Primary Audience Industry/Business
Results and Impact Talk to farmers in Devon on the project in the wider context of Brexit agricultural reforms.
Year(s) Of Engagement Activity 2021
 
Description Third Expert Panel Meeting 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact The meeting covered two main topics: the seafood sector and food security.

The focus of the seafood discussion boiled down to the following key questions:

1. How, and to what extent, did the impact of CV-19 differ across seafood sub-sectors and scale and location of operation?
It was clear that there were extreme regional disparities depending on both species landed and population density around ports. Species destined for the export market were affected first and there are still ongoing effects on price and volume. As the UK hospitality sector closed down, the impact on white fish was felt more widely; however once permitted to reopen, fish and chip shops have reported a boom. Retail sales in fishmongers and on supermarket fish counters that remained open initially spiked and have subsequently held their own, despite traditional supply routes not functioning correctly. Larger processors continued as 'super usual' and sales of frozen and canned produce went up substantially.

2. Following the collapse of established export and hospitality markets how would you characterise industry efforts to re-orientate the market and increase supply and consumption of locally caught seafood?
The initial issue was the risk of excess supply. Some fleets staggered their landings to address this and after a short while businesses started to think about selling locally and domestically. There was initially a novelty element with local sales initiatives (quayside selling, fish vans, etc.), but many of these have now scaled back as the other markets have reopened and produce reroutes back to these. Seafish alongside Defra, launched a marketing campaign (initially designed with Brexit in mind) to get people to engage with UK-landed seafood.

3. To what extent did consumers respond by buying more locally caught/landed seafood and trying more 'unusual' species? And do you think the crisis will result in any long-term shifts to shorter seafood supply chains and wider consumer palettes?
There is still strong demand for seafood. Fishmongers are still doing well and the retail trade is holding its own. Continuity of supply with regard to UK-landed seafood could pose a risk to UK consumption of it as not all species are available year round. Also, as households return to work, the time available for preparation is likely to decrease, which again may affect how willing consumers are to buy and try local seafood. We are seeing shorter supply chains and some online initiatives are growing and expanding.

Regarding food security and the National Food Strategy it was felt that there is a disconnect between the sequencing of the food strategy report and an eventual government response. Decisions, notably about the UK's future trading relationships and future support systems for UK agriculture, are likely to be taken before the strategy is in place. The report has been pushed by the Covid agenda, which wasn't part of its original purpose, and both nutritional security and environmental standards are important considerations that should not be neglected in light of this.

There was also a comparison between the UK approach to food security and that of other countries where food security is taken seriously with the government leading, helping and supporting. Whilst the UK will never be self-sufficient, we need to understand how other nations operate, and if we're going to operate on a world stage outside of Europe, we need to play by the same rules, capability and seriousness that other countries and operators stand by.
Year(s) Of Engagement Activity 2020
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