Norfolk and Suffolk Agri-Food Industry Council

1

Welcome from the Chair

Corrienne Peasgood, the Chair, welcomed members and introduced the meeting. Minutes of the last Industry Council meeting (14 December) were approved.

2

State of the nation: Norfolk & Suffolk farming & food update.

• Cath Crowther – CLA & rural business matters

• Ben Turner – machinery & other inputs

• Andrew Francis – crop production & land management

Additional question posed to the Council regarding the impact of the situation in Ukraine

CLA and rural business matters – Cath Crowther

• Supporting CLA members with impacts of the war in Ukraine and those who wish to host Ukrainian families.

• Holding an agricultural transition roadshow this week with events at Writtle College, near Eye and in Lincolnshire. These events will be very practical, looking at how businesses will be impacted now.

• The CLA provides the secretariat for the Rural Powerhouse APPG which launched an inquiry into rural productivity. The report is due to be published in April and will provide recommendations for how the country can level up rural areas to the national average.

• A sustainable villages report was launched a few weeks ago. Lots of CLA members are struggling to access employees as they cannot find homes close enough for them to work. The report provides recommendations to supply a lot more homes in rural areas.

• Pushing for a rural ringfenced fund under the Shared Prosperity Fund.

• New powers are coming in soon around hare coursing, which is positive, so just need to ensure local police are aware of those new powers.

  
  

  Machinery and other inputs – Ben Turner

• Still facing delays with export checks.

• Business has lost c.£1m of orders (normally export c.£12m per annum) in the last month since the start of the war in Ukraine. Examples include a combine harvester which was sold to Ukraine and remains in the yard; another which was put on a lorry, loaded up and the driver refused to take it, with the company having to absorb all costs; and another deal which was for a Polish customer to sell on to Belarus. They are hearing about Russian dealers contacting European dealers for all types of machinery and inputs.

• Component supply is more of an issue than it was. Lacking in products that they would normally expect to be receiving. They have already ordered c.25% of their US tractor requirement for next spring. Whatever combine harvester is being ordered, will likely face delays this year and could cause major disruption.

• Sponsored the recent Nuffield International Farming Scholars visit. Food security was one of the key standout points from discussions.

• There is a conversation to be had around where do we start and stop regarding long-term Net Zero objectives and morals/ethics.

• Mentioned that tractors and low loaders have been pulled over recently and members of staff have been cautioned without an HGV licence, although they have taken advice and they do not need an HGV licence.

  
  

  Crop production & land management – Andrew Francis

• It is quite optimistic out on the fields. Crops came through the winter well.

• Spring work is well advanced with planting going on.

• The last five months have been bizarre, alternating between extremely wet months and extremely dry months. Average is about right, but that does not tell the full story.

• Held numerous customer conversations given inflationary pressures, but these negotiations over fixed price contracts were before the situation in Ukraine. May need to hold follow-up negotiations for future years.

• Nitrogen is currently three times the price that they would normally pay. Expecting it to be at least double for their 2023 price.

• Ammonia is the big shortage from Russia and Ukraine, it impacts a lot of products.

• Expressed concerns that the pressures and volatility of trading could force businesses into making short-term decisions which are no longer parallel to the longer-term needs such as Net Zero and regenerative agriculture policies.

• Focus on the amount of product used on seed treatment. The Rothamsted model is predicting an interesting period for sugar beet growers. Disease pressure from virus yellows.

  
  

  Additional comments

  
  

  Martin Collison:

• The UK is being very complacent about all of this change (seeing biggest changes for 33 years). Everything since the fall of the Berlin Wall has been about purchasing items from around the world. The risk for the commercial sector has changed – it is not just about wheat, fertiliser, or fuel. A third of our supply of fish comes from Russia and this is being cut off.

• The commercial sector has begun to think about its future and a change of policy. All of the talk in the EU is about increasing food output and sustainability, but only sustainability in the UK.

• Labour costs seem very confused. The Home Office said seasonal agricultural workers would be paid over national minimum wage (NMW), but the Secretary of State for Environment, Food and Rural Affairs has said that these workers would be paid around the NMW. Further clarity is needed.

• Global food security challenge with countries in North Africa beginning to ban food exports. Seeing conflict in many parts of the world.

  
  

  Clarke Willis:

• Fertiliser is always priced on what farmers are getting for their end crop.

• If you are on 100% renewables supply for electricity, it should not have gone up. Government needs to do a lot more to understand supply and demand, plus profit taking across the board.

• The 1 April 2022 changes for red diesel will put massive costs on building and construction. It will affect agriculture and construction e.g., diggers working both sectors will stop doing construction.

  
  

  Sam Fairs:

• Worried that nobody is thinking of long-term employment.

• Costs of bottles, transport and rapeseed have gone from £400 per tonne to £700 per tonne. Their price of oil has gone up 40%.

• The last 20 years has been spent making everything cheaper, there is no fat left to take off.

Tim Place:

• The company uses seasonal workers and is grateful that the seasonal agricultural workers scheme has been reinstated. But the Government has decided that the workers should be paid above NMW, which has come out of the blue.

  
  

  Viv Gillespie:

• Wondered whether there was an opportunity to coordinate effort to attract Ukrainian workers in sectors with skills shortages.

3

Agri-Food Skills Report (Greg Smith, Chair of the Agri-Food Skills Group)

Skills Report attached

• Ongoing labour supply / skills shortage issues.

• Providers continue to evolve offer and report positive demand / interest for courses at different levels.

• Proactive promotion – Norfolk & Suffolk Skills and Careers Festival received over 7,000 visitors with good agri-food sector representation.

• Digital presence through the Food & Farming Discovery Trust remains an ambition.

• ESF Curriculum Development Programme – Agriculture, Land Management and Production T Level roll-out in September 2023.

• New initiatives include skills bootcamps – LEP has bid for 2022-23 funding. Green skills column will provide rapid introduction into the world of agriculture.

• Additionally, Freeport East Full Business Case is being pulled together – will have an impact on trade, inward investment, skills, and innovation with cross-sector opportunities including value-added food processing and agri-tech.

• Mentioned the Agri-Food Skills Report funded by Norfolk County Council, which includes a range of recommendations across the short-term, medium-term, and long-term. The Agri-Food Skills Group can play a central role in monitoring the implementation of recommendations and ensuring that this momentum is not lost.

4

Emerging Water Resources Regional Plan for Eastern England (Rachel Dyson, Water Resources East)

Slides attached

• Final Regional Plan will be published in September 2023 and act as a Regional Plan for Eastern England to 2050 and beyond. Maps future demand for water; environmental ambition; and economic ambition.

• We are going to need double the amount of water we use today by 2050.

• Two reservoirs planned for the Fens and Lincolnshire.

• Working through emerging plan consultation responses. For the agri-food sector, main themes were food security as an emerging theme, and this was prior to the Ukraine crisis; 1–15-year water shortages; financial implications (capital and operational costs); evidence to support environmental needs; more research into helping and financing landowners to form collaborative schemes within catchments; and there will be severe cuts in current licensed abstraction volumes before sufficient alternative options can be developed unless we can act now.

  
  

  Additional comments

  
  

  Tim Place:

  • Asked for access to the data so we can have the amount of water used for the agri-food sector. (Rachel shared her email address in the MS Teams chat for Tim to contact).

5

Road to Net Zero Business Support Programme (Naresh Pandit, UEA)

• Looking at best practice on decarbonisation plans / activities and challenges for businesses across Norfolk and Suffolk.

• Conducting three surveys – focus group, interviews, and online questionnaire.

• Sending out about 600 online questionnaires – will feed into a report and marketing and communications strategy around the best practice element of the Road to Net Zero Business Support Programme as well as some of the challenges being faced by businesses.

  
  

  Additional comments

  
  

  Ben Turner:

• Changed the number of company vehicles so they now have 15 electric vehicles (EVs) rather than diesels. Cost of EVs has gone through the roof.

• Energy usage is now live on an annual basis.

• Each depot has solar cells on the roof where they can. Capped on this though.

• Putting in a new depot in Oakham with an underground tank where they are catching rainwater to use.

• Working with customers on the regenerative agriculture side and capture data to allow them to make data-informed decisions – cuts use of fertilisers. New tech coming which utilises AI to reduce amount of spray on crops.

• Nobody can tell the company what measure they should use to map whether the business is carbon neutral – in the sightline but needs clarity over measurements and costs involved.

• Hearing from some companies / projects asking about their policy.

  
  

  Martin Collison:

• Reducing number of miles in the car/air for meetings and events; capturing rainwater to cover the businesses’ needs; biomass; working with transport – largest businesses not sure whether they should go for EV, hydrogen or biomethane – nobody knows what the right mix is.

• One of the big food businesses they work with has a good understanding of what is in their sight but struggling with the rest of the supply chain – being asked for carbon footprint for the whole supply chain and finding it very difficult indeed to capture data.

• Working with several large farming estates – real concern is how secure the schemes are now and concerned about long-term pricing. Need certainty about the way the market will develop.

  
  

  Clarke Willis:

• Food Enterprise Park has a vision to be the first completely renewable powered food park in the country. 30MW connection to the grid. Linking with 110 acres of solar – will have 60MW of power.

• Planning road network to be on a bus route with cycle paths through the park.

• Phase two of the development looks at large artic vehicles that cannot enter Norwich and are replaced by smaller EVs.

  
  

  Rosie Begg:

• Fruit farmer that is beginning to understand where they are on their Net Zero journey.

• Working with UEA on their soil.

• Reduced fertiliser on the farm by 30% last year, will further reduce by 15%.

• Stopping inputs on certain parts of the farm altogether.

  
  

  Belinda Clarke:

• Eliminating plastic for events and meetings to ensure they are as low-carbon as possible, and many of them are virtual. Looking at offsetting the additional computing power.

  
  

  Sam Fairs:

• Have a chicken farm, arable farm, and press rapeseed oil. Reducing fertiliser usage. Only harvest once each year, so a slow burn in terms of the learning process. Somebody still has to

pay for this – an investment for the future. They have put a lot of money into a ground source

heat pump at the chicken farm. Invested in solar too. Run the business as well and need to ensure they meet their margins.

Cath Crowther:

• CLA has been providing various case studies for members to show what others are doing in moving towards Net Zero and the nuances around climate change and that it is not a 'one size fits all'.

• They also have a variety of guidance notes on carbon accounting.

  
  

  Andrew Francis:

• Big ticket items have been touched on by Martin. Access to capital, affordability and payback are barriers. At the granular level, on the edge of capturing in-field data. Field-based efficiencies is where the big gains can come from.

6

Inward Investment Updates (Stuart Catchpole, New Anglia LEP)

High Potential Opportunity slides attached

• High Potential Opportunities (HPOs) are part of DIT’s global programme of marketing specific commercial opportunities. Forms part of a suite of promotional tools.

• Have two in the region – one at Adastral Park and this one around Norwich Research Park.

• Plant Science for Nutrition HPO slides arrived in its final form yesterday – James can share this. All about utilising plant science expertise across Norfolk and Suffolk.

• Holding morning and afternoon sessions on 20 April with DIT international posts to give them insights into this opportunity. As part of inward investment delivery plan, need to develop a supporting campaign plan.

• The other thing we have been working on recently is mapping the UK’s capability in agri-tech. This will go on DIT’s Innovation is Great website (called the Atlas) for international promotion. Will include key facts around agricultural sector, skills, and training, and where the opportunities might be. www.great.gov.uk/international/investment/

7

Additional Cross-Sectoral Opportunities (James Allen, New Anglia LEP)

• The Space Sector Plan for Norfolk and Suffolk is currently being developed, with AstroAgency leading on the development of the Sector Plan. There will be a strong focus on the downstream application of satellite applications technologies and present opportunities for the agri-food sector. The LEP would be happy to set up introductions with AstroAgency if anyone would welcome a conversation to support this work.

• The Freeport East Full Business Case is being pulled together with key chapters around innovation, skills, and inward investment. It will have a strong link with the agri-food sector, including value-added food processing and agri-tech.

Additional comments

Martin Collison:

• Would be interested in engaging with the work to develop a Space Sector Plan for Norfolk and Suffolk.

8

Any Other Business (Chair)

• We would like to invite Council members to volunteer to lead on / support one of the following sections of the Economic Strategy’s agri-food priorities (p.18). Ideally, this will lead to targeted interventions / actions underneath those priorities set out where local partners will work together to:

  
  

  1. Deliver a regional innovation support programme at the Broadland Food Innovation Centre and establish a regional Food and Drink innovation cluster

1. Maximise the potential of the Food Enterprise Zones in Norfolk and Suffolk

2. Develop collaborative investments

3. Collaborate across the region to develop new projects that harness research strengths

4. Develop a world-leading hub for plant and microbial research at the John Innes Centre with the Sainsbury Laboratory

5. Work with farmers, land managers and environmental specialists to target environmental land management initiatives, maximising natural capital and enabling productivity.

6. Grow skills provision for the agri-food sector

The following members volunteered, but we would welcome more support to either lead or support:

• Clarke Willis – happy to lead/support with workstreams 1&2.

• Belinda Clarke – happy to lead/support with workstream 4

• Mike Edwards – happy to support with workstream 6

• Sam Fairs - happy to support with workstream 6

• Rosie Begg - happy to support with workstream 6

• Greg Smith – happy to lead on workstream 7

• Viv Gillespie - happy to support with workstream 7

This will not be an onerous request, but James is happy to set up a 30-minute call for these priorities. Please do contact [email protected] if you would like to be involved by 31 March.

• Request came in to invite UEA along to a future meeting to talk about the Smart Emerging Technologies Institute (SETI).