January 2024: Farmer-led Working Group

The first of our bi-monthly Farmer Advisory Board meetings brought together farmers, manufacturers, processors and brands to address critical industry issues and provide a space to discuss the challenges and opportunities in the food industry. 

With only six years to hit the 1.5-degree global warming threshold, the food industry plays a critical role in tackling global warming.  

Shifting mindsets and improving understanding along the supply chain will help ensure resilience both now and in the future, and this session was a place to start.  

The eye-opening conversations centred around topics such as sustainability standards, procurement strategies and contract lengths, policy advocacy, the realities of farming, and the urgent need for collective and practical action to address sustainable food industry change. 

Policy: We must ALL be held to higher standards   

Considering the diverse stakeholders involved in food production, the transfer of information and genuine understanding across different segments of the supply chain is essential to create a unified approach where farmers are not backed into a corner.  

Concerns were expressed around the impact of current market practices, the need for policy frameworks to level the playing field for food and drink businesses, and the urgency of taking action to meet emissions reduction targets.  

It was acknowledged that if we wait for governmental change, we will be waiting a long time – but a unified voice of businesses and farmers could be a powerful way to lobby the government.  

Hyperinflation and Contract Lengths  

Farmers have faced significant challenges, such as hyperinflation, which is particularly damaging due to the way contracts are set up with suppliers. Twelve-month contracts are common in farming, making it difficult to quickly adjust prices. Despite these agricultural companies being financially stable, losses accumulated over time, putting a heavy burden on farmers. The difficulty in recovering losses makes their work unfeasible, forcing them to take difficult decisions, such as breaching contracts. 

Procurement Strategies and Values 

On the flip side, it was acknowledged that to support an accessible regenerative food system and move away from the traditional low-cost model, long term contracts are essential for investor confidence for farmers.  

The group acknowledged the need to re-evaluate procurement strategies, emphasising the significance of upskilling and guiding the transition towards more sustainable procurement practices.  

The farmers emphasised the importance of procurement teams visiting farms to fully understand the impact of weather amongst other factors, which should be bulit into future planning.  

The commitment to driving change within businesses to look at long term benefits over short term financial wins requires a mindset shift. Short termism risks a failure to support British food supply right now, and in the future.  

Farmers and mental wellbeing  

Given the very nature of their work, farmers are intrinsically linked to their businesses, living and breathing it every day. The immense challenges that farmers face, include increased workloads, handling difficulties, and pressure from buyers, which significantly impact their mental well-being. The alarming rate of suicides within the farming community brings to light the critical element of human rights and well-being in sustainability conversations.  

With farmers meeting strict regulations combined with economic pressures, we must reconsider developing a more balanced and humane approach to agricultural sustainability, sharing the risk along the supply chain. 

UK agricultural market pressures 

High UK standards were highlighted as the reason for keeping everything at a basic minimum cost. However, it was brought to light that UK farmers are undercut from competitors outside the UK. Food manufacturers and buyers save hundreds of thousands of pounds from sourcing supplies overseas, demonstrating that currently, profit margins lead the direction of decision making. Farms are closing down each week in the UK, risking our ability to feed ourselves. Profitability will always be a motivator for everyone, and while long-term objectives are discussed, decisions currently are made in the short-term.  

Urgency – 2023 is just 6 harvests away 

The farmers urged the group for a strong call to action, acknowledging the pressing need for a unified approach to tackle the industry’s environmental challenges.  

The urgency of implementing transformative measures was highlighted, with stakeholders urged to move swiftly in achieving ambitious sustainability targets in a collaborative way.  

The timeline available to effect substantial change is short – the critical need for proactive and collaborative efforts to drive meaningful progress by 2030 is just 6 harvests away.