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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (George Eustice)
It is a pleasure to serve under your chairmanship, Mr Hood. I congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing the debate. I also congratulate the members of the Environment, Food and Rural Affairs Committee on a comprehensive, rounded report that covers a wide range of issues, including self-sufficiency, whether we can improve and increase our exports, the role of the common agricultural policy, the impact of climate change, the importance of technology in agriculture and, finally, the role that reducing food waste can play in meeting our food security needs.
I will briefly set out the nature of the challenge that we face. As the shadow Minister pointed out, the Foresight report examined the issue of food security and concluded that by 2050 there will be a large increase in the world population. Some projections suggest that it could go to 9 billion. Projections suggest that that could lead to an increase in food demand of between 60% and 70%. Coupled with that is the impact of climate change, which means that parts of the world that can currently produce food may be restrained by water resources. Water could become a limiting resource, which would compromise the ability of those areas to produce food.
The Foresight report concluded in 2011 that we have a good level of food security in the UK. It also highlighted the fact that the issue is not just about self-sufficiency. In fact, self-sufficiency is in many ways—I will come on to them—the wrong measure to use for food security. Global food security depends on free trade as much as it does on sustainable production. The UK Government’s position is clear: we want a successful, vibrant farming industry and a sustainable increase in food production. We are doing a huge amount to promote exports and to try to open new markets for our products. We are also keen to deliver import substitution, particularly in dairy, where there is a great deal more potential for this country to manufacture and process more cheese. There are also export opportunities for sectors such as beef and lamb.
If we deliver that and achieve that sustainable increase in production, displace imports and grow our exports, we will of course increase our self-sufficiency. For reasons I have made clear, however, the production-to-supply ratio is the wrong measure for food security, because we could be completely food sufficient one year, but then have a dire harvest and find that we are not sufficient the next year. Part of global food security is therefore about having open markets and free trade.
It is also worth putting our level of self-sufficiency in context. Between the wars, in the 1920s and 1930s, our food security was only some 30% to 40%. At the start of the second world war and when in dire need, the country managed to switch production sharply to crops such as potatoes and got close to self-sufficiency. We can therefore change such things when we need to. As my hon. Friend the Member for Thirsk and Malton said, our overall self-sufficiency is at 60%, but our self-sufficiency in indigenous foods is still around 73%. That has stabilised in recent years, but it is down, as my hon. Friend said, from the peaks of the late 1980s and early 1990s. We must recognise, however, that a distorting common agricultural policy was driving unsustainable production at that time, and we do not want to return to that.
My hon. Friend also highlighted climate change, which is important in the context of global food security. It is clear that water will become a limiting resource in many countries, which is why some of the research that we are funding through our agricultural technologies strategy is on developing drought-resistant strains of wheat that will still be able to be grown in such countries.
We are also promoting the sustainable intensification of agriculture. Several hon. Members mentioned the green food project, which the Government took forward and published. A number of industry road maps also deal with carbon reduction. My hon. Friend also mentioned soya and its impact on the environment. It is worth noting that the pig sector has made quite good progress in reducing the amount of imported soya used for pig feed, which has contributed to a reduction in their carbon emissions. DEFRA also has greenhouse gas action plans, and we are working with industry to achieve cost-effective reductions in emissions of some 3 million tonnes of carbon dioxide by 2022. We are therefore doing several things to deal with the environmental impact.
Several hon. Members mentioned the report’s recommendation that DEFRA should lead on food security. The Government response made it clear that we agree with that, and that DEFRA should and does lead on food security. The Government were asked whether someone should be designated to deal with the issue. Well, I am standing here, which usually means that I am the Minister who has been designated to look after this matter.
Miss McIntosh
The Minister is being gracious in his response, which is most welcome. We want a co-ordination role and a cohesive, comprehensive approach, which he is well qualified to provide. He steps up and says that he is responsible for food security, but we want someone to co-ordinate policy across the three Departments.
George Eustice
I understand that. I think that we do have that co-ordination, but I lead on food security. We also need co-ordination on science, because science will have many of the answers to the challenges we face.
Several hon. Members mentioned the Global Food Security programme, which was set up to co-ordinate food-related research. It is led by Tim Benton, whom the shadow Minister mentioned, and deals with joining up research in a number of areas, looking at how to improve resilience and the sustainable production and supply of food. It also considers nutrition, health and well-being. That programme is co-ordinating and joining up much of the specific, tailored research in this area. DEFRA is also looking more generally at whether we can co-ordinate more effectively all the various research bodies to reduce duplication and increase focus on research and its effectiveness.
My hon. Friend the Member for Thirsk and Malton mentioned the importance of waste, an issue that the second part of the Committee’s food security report considers. The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for North Cornwall (Dan Rogerson), is present for the next debate and waste is generally an issue that he covers, but it is important to recognise that, through the Courtauld commitment and the work of organisations such as the Waste and Resources Action Programme, we have already made good progress on reducing food waste. Household waste is down by some 15%, and we have reduced waste in the supply chain by some 8% and aim to reduce that further.
I want to touch on the importance of technology. Together with the Department for Business, Innovation and Skills, we have an agri-tech strategy and a £160 million fund, £90 million of which is a catalyst fund to support projects in order to accelerate the transfer of knowledge into farms. Another part of the fund is designed to create centres of excellence in science and food technology.
On long-range weather forecasts, I chair a farm resilience group that meets every six months and will be meeting again in the new year. The Met Office is represented in the group, and we regularly discuss how to improve weather forecasting for farmers. DEFRA has also funded a project to examine our flood resilience on the east coast, and, in addition to some other international collaboration, we are doing some work with the Foreign and Commonwealth Office and the US Government to understand the impact that extreme weather can have on global security. We are conscious of the weather’s impact and want to improve our forecasting.
My hon. Friend the Member for Thirsk and Malton and others mentioned the soft fruit industry’s success in extending its season. Our production-to-supply ratio for strawberries has increased from some 60% to 70% just in the past decade or so. I was in the soft fruit industry myself some 20 years ago, and some of these things are not as new as some people say. In Cornwall 20 years ago, I was producing strawberries in heated glasshouses from the end of March right through until Christmas. We used to pride ourselves on having strawberries from Easter to Christmas. The advent of Spanish and French-style polytunnels has given more protection to such crops and has enabled a more widespread extension of the season. My hon. Friend also mentioned apricots, which are indeed now grown in the UK under temporary polythene structures.
I agree with my hon. Friend on the importance of reforming the common agricultural policy. The Government argued against the greening measures in pillar one and were clear that it should be kept as simple as possible, and that the best way to deliver for the environment was through our highly successful agri-environment schemes and pillar two. I can confirm that the Secretary of State for Energy and Climate Change has written to new Commissioner Hogan, with whom I spoke last week. The European Commission is certainly open to the idea of reconsidering some of the greening requirements, and possibly even reconsidering in the mid-term review the idea of the three-crop rule or how it is applied. We have worked with our allies in the Stockholm group of countries, which argue for reform of the CAP and the European Union, to reach a common position to argue for the simplification of the CAP. We hope to make some progress on that next year.
My hon. Friend the Member for Thirsk and Malton mentioned soya beans, and I have already touched on the fact that the pig industry has been particularly successful in reducing the amount of soya bean that it uses. The other thing to note is that one possible impact of the greening of pillar one—of which, I repeat, we were critical—is that in order to reach the three-crop rule some arable farmers may grow leguminous crops such as broad beans to count towards both their third crop and their ecological focus areas. Potentially, we could see an increase in the production of broad beans and other leguminous crops, which might then displace soya imports.
My hon. Friend also mentioned soil protection. Under our cross-compliance regime, we will scrap the need for a soil protection review, which is only a paper-based exercise that people go through and tick boxes. It does not mean much and is simply an administrative task, and we are replacing it with something much more meaningful. Where we know about soil management challenges on farms or inappropriate management of the soil having an impact on water courses, for example, we want to put in place meaningful measures to deal with that. We are completely overhauling cross-compliance in that area.
Huw Irranca-Davies
The Minister is giving a comprehensive report,. Will he give us more idea of what “meaningful measures” might be? It is only one point in his overall plans, but this different approach is interesting—to say, “We are not doing a tick-box scheme, but we will target instead.” What might such measures be? Does he have any early indications?
George Eustice
Yes. We will shortly be publishing the detailed guidance on the cross-compliance, and the hon. Gentleman will be able to look at it then. In essence, it means farmers ensuring that they have vegetative cover on fields for the maximum possible amount of time; that they only plough when they need to, just ahead of sowing; or that, for example, if they have a problem with water running off their fields, they might consider ploughing them in a different way so that the water does not tunnel down the furrowed ploughed land. We can do a number of different things, and that is the kind of sensible measure that we will have in cross-compliance, rather than having a simple paper-based exercise.
On the groceries code adjudicator, my hon. Friend the Member for Thirsk and Malton mentioned third-party complaints. I was on the Bill Committee that scrutinised the introduction of that adjudicator. Third parties may complain on behalf of other people, but she made a moot point about whether the adjudicator should be able to instigate investigations itself, without a complaint. In a year or two, a review by the Department for Business, Innovation and Skills, which is the sponsoring Department, might consider that, but at the moment it is too early to make such a judgment.
My hon. Friend also mentioned new entrants. I confirm that we are working on a plan to support new entrants into the industry through the rural development programme. It is a delight to be in the Chamber today, but were it not for this debate, I would have been speaking at the Farmers Weekly “Fertile Minds” conference in Cumbria, which is all about trying to engage new people into the industry. That is something that we are looking at, and I am working on a project about encouraging the use, for instance, of share farm or contract farm agreements to create alternative routes for new people into the industry.
We are already delivering on our commitment to increase exports. Through UK Trade & Investment, we have already helped 2,500 food and drink companies and, so far this year, we have opened more than 100 new international markets to animals and animal products. That includes countries such as the Cayman Islands, the Dominican Republic, Mongolia and, for dairy products, Cuba. We are leaving no stone unturned when it comes to opening new markets.
A number of hon. Members, including the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) and the shadow Minister, the hon. Member for Ogmore (Huw Irranca-Davies), mentioned the previous Government’s “Food 2030”. People can, however, get too hung up on particular reports. I have read the report and, where it talks about the importance of agricultural technology, I would argue that we have taken things forward in our agri-tech strategy and other things. The report mentions the importance of sustainable intensification—we have had our own green food project with various route maps. It talks about new entrants—I have just explained what we hope to do on that. There is a consistency of themes between what we are doing and what was identified in the report as a challenge.
In addition, we have asked the Agriculture and Horticulture Development Board and its new chair, Peter Kendall, to put in place a plan for British agriculture and for how we can make it more competitive. That is a priority for that levy organisation.
Jim Fitzpatrick
I take on board what the Minister is saying about consistency in Government policy. It was probably too naive of me to expect that the branding would have stayed the same; as long as the policy stays the same, that is the consistency that the industry is looking for.
George Eustice
There we go, we have an outbreak of consensus. As I said, we are taking forward many of the points.
The hon. Gentleman also mentioned the existing precarious condition of the dairy industry, which has seen sharp falls in prices. I will have the pleasure of appearing before the Environment, Food and Rural Affairs Committee next week to discuss such issues in more detail. For now, I point out that last week we had a meeting of the dairy supply chain forum, which I chair. We looked at the issue of price volatility and at whether the industry can do more, or whether we can support it, to develop financial instruments that might help them to manage volatility in future. We have also had a review by Alex Fergusson MSP of how the dairy supply chain code is working.
On GM foods, which a number of hon. Members mentioned, our position is consistent. We believe in a science-based approach; if we get the regulation right, there could be a role for such crops. That remains our position. We have always sought allies to argue that case in the European Union.
The hon. Member for South Shields (Mrs Lewell-Buck) talked about food security and, in the context of food banks, people’s ability to afford food. I will not stray into areas that are the responsibility of the Department for Work and Pensions, which might be outside the scope of the debate, but I want to say that although there was a big spike in food prices in 2008, in the past year we have seen food prices fall for the first time since 2002. I chair AMIS, the Agricultural Market Information System, which monitors agricultural commodity markets, and most of the projections at the moment are that for the next couple of years there will be relative stability in cereal prices.
The hon. Member for Ogmore mentioned animal feeds. I want to touch on that, because animal feed costs are lower. Although prices are in some cases just as low for dairy farmers as they were two years ago, the fact that animal feed prices are lower means that farmers’ financial viability is not as compromised as it might have been. He also talked about local food networks, and we are keen to encourage and promote local food production. That is why we asked Peter Bonfield to put in place our new Government plan for procurement, which is all about encouraging the public sector locally—schools and hospitals—to buy and source its food locally, from local suppliers.
The hon. Member for Ogmore also mentioned the role of health. Public Health England regularly runs campaigns to encourage healthy eating, in particular the “eatwell plate”, through which people are encouraged to have their five a day, to moderate their meat consumption and so on.
The final thing that I wanted to mention was the point about meat production made by the hon. Gentleman. We are not going to lecture people on what they should or should not eat, but one of the things that emerged from an informal session that we had at the European Council recently was what might happen if we want to reduce our carbon footprint in meat production, which is perhaps a bit of a trend towards less intensive systems, predominantly using grassland production, the environmental impact of which is lower. The lamb and beef systems of production in this country have less impact on the environment than those of many other countries.
Huw Irranca-Davies
My intention is to come back only on that point, because a lot of good stuff is going on and there is a lot of continuity, which is great and which people want to see. The Minister mentioned procurement and diet, health and well-being, but with so many such areas involved, does he sit down with other Ministers and talk about the effect of X, Y and Z on the food industry, jobs, average earnings, food banks or the response to food aid, telling them what he would like them all to do?
George Eustice
The hon. Gentleman has been in government, and he knows that Ministers have regular meetings with other Ministers on a range of issues. I regularly meet the Health Minister with responsibility for those matters to discuss issues such as nutrition.
Huw Irranca-Davies
I am trying to enhance the Minister’s position. I would like him to sit down in a cross-departmental way and say, “Health, you are doing great things. BIS, you are doing great things. All of you are doing great things, but it is within a context. We will deal with things, such as access to food within the UK, and we will do it in this manner, coherently.” I want him to do that. Will he do it?
George Eustice
As we said in our response to the report, DEFRA leads on food security. Ministers have many meetings with ministerial colleagues, and we have many cross-Government committees, some of which are chaired by Ian Boyd, DEFRA’s chief scientist, and some of which are chaired by officials. This is an important debate on a wide-ranging report that makes an important contribution to the debate on food security. Again, I congratulate the members of the Environment, Food and Rural Affairs Committee on their work.