THE NORFOLK AND SUFFOLK AGRI-FOOD INDUSTRY COUNCIL

Tuesday 15 December 2020 09.30 - 11.30

Via Teams

Minutes

Welcome from the Chair; apologies; introductions, minutes of the last meeting; approval and matters

arising

Corrienne Peasgood, the new Chair welcomed members and introduced the meeting.

State of the nation: Norfolk and Suffolk farming and food update

Skills - Corrienne Peasgood

Government has provided a little more clarity around initiatives such as kickstart courses and sector-based

work academies, although they’re unlikely to have an immediate impact. New Anglia Skills Advisory Panel

is to submit a report to government on skills issues within the LEP area. Brexit will bring challenges for

education including around the treatment of EU students as their status changes from ‘home’ students to

international. A government white paper, expected in the New Year, should bring beneficial changes to the

business sector including new initiatives such as networks of colleges working together as business hubs

to benefit businesses.

Agriculture - Andrew Francis

Weather has once again caused difficulties for farming businesses. The loss of certain active ingredients

has had significant yield and income challenges for oilseed rape and sugar beet crops, due to the ravages

of cabbage-stem flea beetle and virus yellows respectively and reinforces the need to transition from

synthetic solutions into integrated and ecological approaches. The market for root crops, especially

potatoes, is currently very low, as are prices, and expected Christmas demand has not yet materialised.

Brexit is expected to have a significant impact on supplies of machinery parts, chemical inputs and

fertilisers and where possible businesses have stocked up.

Rural Business - Nick Sandford

The major concern for many agricultural businesses is the transition away from the basic payment scheme

to the new environmental land management scheme over the coming years. This equates to an average

cut of 25% in farm payments. Many businesses will be hit hard, and some will be lost completely. Coupled

with recent poor yields and low prices this will be particularly damaging for the sector. Furthermore, Covid

restrictions have had a serious impact on diversified businesses, especially those in tourism, although

some of these have seen increased bookings this year when they were able to operate. Concern exists

about the impact of Sizewell C on tourism as well as the impacts on the countryside of the infrastructure

connected with offshore wind farms.

Agricultural Shows - Greg Smith for Philip Ainsworth

Both Suffolk and Norfolk Agriculture Associations have confirmed that their respective shows will not go

ahead in 2021 given the uncertainty regarding Covid. This will have considerable knock-on effects for

supply chains and the small businesses for whom the shows represent major marketing and sales

opportunities. The cancellation of these two shows will represent an estimated loss to Norfolk and Suffolk’s

economy of up to £50m in 2021, on top of similar losses this year.

Food and Retail - Sam Fairs

Significant reductions in food service demand have presented challenges which in some cases have been

mitigated by switching to online retail sales. Farm shops and other food outlets such as pubs have adapted

rapidly to help cope with the restrictions although the sector has still been hit very hard. Uncertainties

around Brexit present the biggest challenges in terms of imports from the Continent and the export of

goods. Turkey sales are reported as being good despite the difficulties that avian influenza has brought.

Processing and malting - Nigel Davies

Exporting conditions are tough, due to a shortage of shipping containers, although demand remains

strong. This problem is also affecting orders of goods and inputs from overseas. During the year brewers

have switched some of their production to pre-packaged for sale in supermarkets while pubs were / are

closed. Distilling demand has, however, remained flat. The uncertainties surrounding Brexit have led to

orders for 2021 coming in early to try and beat the expected disruption at ports, and in response to the lack

of containers. 2020’s poor harvest has been a major problem as it has made it so difficult for the business

to get hold of suitable raw materials.

Machinery and Inputs - Clarke Willis

There’s real concern about the fertiliser market, due to there being only one UK manufacturer of

ammonium nitrate, and the reliance of farm businesses on other, imported materials as well. No UK

suppliers want to commit to buying forward which will present problems especially if we have an early

spring. Current mild weather has meant there have not been problems with fuel and heating oil supplies

although delivery windows are tight as consumers seek deliveries before Christmas. The supply chain for

machinery parts and supplies is very fast-moving and dynamic, with much stock coming in from the EU.

Most businesses have stocked up but it’s impossible to do so for every single part.

Food Enterprise Park - Clarke Willis

There has been no building work in 2020 but spring 2021 should see the Food Innovation Centre (FIC)

begin to develop. This will comprise 13 units, of various sizes, totalling 35,000 square feet together with a

2000 square foot innovation hub with a sensory laboratory and test kitchens. FIC is supported by

Broadland District Council, UEA, Easton College and Suffolk Rural. It’s expected next spring that the FIC

will host a vertical farm development from an existing UK business which, at three acres, will potentially be

the largest such enterprise in the country. Power supply and capacity at the site are presenting challenges

which are being addressed including through the development of a solar farm. Access onto the site will be

improved with the dualling of the nearby section of the A47 which will be complete in spring 2024.

Brexit: Update and implications

For Council’s information and for feedback to New Anglia LEP

Council was given an update on the current Brexit situation and what it might mean for business in Norfolk

and Suffolk.

• The UK still faces uncertainty over whether a deal will be struck.

• The prediction at the start of 2020 was that if a deal was secured, Norfolk and Suffolk GDP would

fall 4% by 2030, and the UK as a whole would fall by 3.5%. Without a deal, this would be a 6%

reduction for Norfolk and Suffolk, and 5% - 6% for the rest of the UK.

• Over the last few months New Anglia has worked with stakeholders to assist with preparedness for

the end of the transition period.

• Government guidance, including a ‘master transition checklist’ is available online, as are various

sectoral checklists including for the food and drink sector. New Anglia has distributed this widely

both directly and through various channels including the New Anglia Growth Hub.

• The LEP has created a business script for Growth Hub and other business advisors, tailored with

key local information, in particular around funding and skills opportunities locally.

• New Anglia LEP has received additional funding from government to support outreach work with

businesses and to provide in-depth advice to best prepare for the new relationship. This must be

spent before the end of March and the LEP is tendering, via its website, for a contract to provide

specialist business support to around 3,500 businesses.

• New Anglia compiles and sends to central Government a weekly business intelligence report,

covering both COVID and Brexit impacts. This information, coming from businesses, is also vital for

the LEP itself as it develop its recovery plan for the New Year.

• Splits are appearing in business readiness across Norfolk and Suffolk. Some businesses are as

prepared as they can possibly be. Some are simply COVID firefighting. And there are others which

will not make preparations until they have greater clarity and certainty.

• Many firms are increasing capacity to deal with the additional paperwork expected.

• Delays at ports and to shipping are already being seen before the transition period ends.

• The LEP continues to highlight the difficulties that businesses face due to current uncertainty, and

the urgent need for greater clarity.

• The LEP has repeatedly emphasised to government the need for ‘levelling up’ funding for Norfolk

and Suffolk.

• Key for business now is to try to prepare for the unknowns, which is the biggest challenge being

faced. In addition, the LEP would like to hear feedback from business about

o levels of preparedness

o where the pressure points in supply chains and distribution are

o to what extent the proposed tariff regime will affect the sector

o in the event of a no deal, confidence levels regarding workforce availability

Agriculture Act: Update and implications

For Council’s information and consideration of implications for New Anglia LEP

Gary Ford, NFU regional director, updated Council on the new Agriculture Act (see Appendix 1) which will

be hugely significant in shaping farming for many years to come. Of particular concern to the NFU is the

loss of BPS monies which are to be phased out over the next seven years and the ‘funding gap’ between

the phasing out of BPS and the introduction of new schemes including Environmental Land Management

Scheme (ELMS) which will form the cornerstone of the new agricultural policy. These changes will have

profound impacts on farming businesses, and the initiatives announced by Defra for during the transition

phase lack detail, adding to the uncertainty facing farm businesses.

The Act has also established the Trade and Agricultural Commission which will ensure Parliament is made

aware of the implications of trade deals struck by the UK to maintain the level playing field and to avoid

undermining our high animal welfare and environmental standards in the UK.

The Act also requires the government to report on the state of the nation's self-sufficiency every three

years, which is something the NFU fought for. The legislation recognises the importance of encouraging

food production and wants farmers to receive a greater percentage of the price of the food on the shelf.

The NFU hopes this will mean more income returned to farm, helping offset BPS reductions.

Agri-Food Intelligence and Feasibility Project

Discussion of findings and recommendations

The authors of the report, Emily Norton of Savills and Simon Ward of Increment, gave a presentation to

Council (see Appendix 2) detailing their approach to the research, observations and key findings, and what

they see as next steps. This included the following:

• Research included identifying a selection of 200 businesses, which give a real flavour of the

diversity, depth of innovation and potential in the sector.

• A ‘smart specialisation’ approach was used to help identify the area's strengths in order to develop

locally appropriate interventions.

• A focus on innovation and adaptation formed the basis of interviews with stakeholders, in view of

the massive structural changes the industry faces over the coming years.

• Norfolk and Suffolk food business strengths include expertise, sustainability and resilience, which

should be championed and developed as the foundation for future growth.

• Creating an enabling environment is essential for businesses to survive. In particular, partnerships

within the private sector and with the public sector, to help foster this enabling environment.

• Norfolk and Suffolk businesses have high agricultural productivity but suffer from relatively poor

connectivity to the big population centres. This has led to the sector focussing on the production of

bulk, lower value exports.

• There’s a perceived gap between work undertaken at our research institutions, in particular on

NRP, and the area’s primary producers, and the report contained suggestions for addressing this,

including bringing in specialists from a range of backgrounds, manufacturing and IT, for example,

as well as food and crop specialists.

• This presents opportunities to improve alignment between agri-food production and the science

and innovation economy, coalescing around improved nutrition, human and planetary health.

• Our farm businesses are well-placed to capitalise on emerging food trends, particularly in

alternative proteins and alternative materials (e.g. hemp)

• The coronavirus pandemic has shaped these trends and increased interest in local food and the

availability of food and security of supply, which influenced development of the Agriculture Act.

• In terms of creating a new regional food brand, the report concluded that this would be difficult due

to the lack of both an existing cohesive regional identity and a regional food group.

• The report presents opportunities for the sector in Norfolk and Suffolk, under four key themes,

which will be explored further by Council in the coming months : 1) novel crops, 2) environmental

services, 3) value retention at farm gate and automation / data collection and analysis

Transformational Projects

Update - for Council’s information

The Council has established a Transformational Projects sub-group to identify and screen potential

ideas/activities that could benefit the sector. A subgroup met in October to review the ten proposed project

ideas, which was whittled down to a shortlist of five. A number of these projects link directly with current

Council activities and priorities, including what has been discussed at today's meeting. The work that's

been done provides a helpful framework against which projects can be screened, and a more effective

mechanism to identify future potential projects is also required. Future work will focus on exploring new

ideas, developing and supporting projects, identifying appropriate funding where relevant.

Agri-Food Governance and structure review

For Council’s information

Madeleine Coupe from New Anglia explained that the Council has now been in place for a year, and that in

view of the unusual challenges and opportunities the sector is facing it is right to develop the Council’s

current structure to help it meet these challenges. It’s expected that additional individuals will be invited to

sit on the Council to ensure that the wider industry is fully represented. Roles and responsibilities of the

Council subgroups will also be formalised, and these groups will seek input and expertise from outside of

the Council where necessary.

Any Other Business and dates of future meetings

It was Madeleine Coupe’s last meeting supporting the Council, as she was leaving the LEP. She was

thanked by the Council for her hard work.

Consideration will be given to holding an additional Brexit-focussed meeting in the New Year

Dates of 2021 meetings: (Note timings)

Tuesday March 23

0930 - 1130

Tuesday June 22

1400 - 1600

Tuesday September 21

0930 - 1130

Tuesday December 14

1030 - 1230

Outlook meeting invitations will be circulated in the New Year

In Attendance

Briony Tuthill, Anglian Water; Jonathan Clarke, JIC; Madeleine Coupe, New Anglia LEP; Jo

Middleton, Norfolk County Council; Alex Dinsdale, Agri-TechE; Sam Fairs, Hillfairs Farming Ltd; Gary

Ford, NFU; Viv Gillespie, Suffolk New College; Robert Gooch, The Wild Meat Co; Jasmine Joolia,

Suffolk County Council; Corrienne Peasgood, (Chair) City College Norwich; Greg Smith, Royal Norfolk

Agric Assoc; Emma Taylor, New Anglia LEP; Clarke Willis, Food Enterprise Park, Belinda Clarke, Agri-

TechE; Nigel Davies, Muntons; Andrew Fearne, UEA; Andrew Francis, Elveden Estate; Nick

Sandford, CLA; Barry Chevallier Guild, Aspalls; Ian Gregory, New Anglia LEP;

By invitation

James Allen, New Anglia LEP; Emily Norton, Savills; Simon Ward, Increment;

Apologies for absence

Philip Ainsworth, Suffolk Ag Assoc; Martin Collison, Collison and Associates; Sarah Lucas, Brown and

Co; Ben Turner, Ben Burgess and Co Ltd;