(1 year, 10 months ago)
Lords ChamberI thank the noble Lord for his questions. There will also be photographs of full shelves in supermarkets in the UK. We have a multiplicity of different companies retailing food in this country, and they all have their own supply chains. If there are also photographs of full shelves in Spain and Morocco, it may be because the supply chains for those companies favour local produce in the way that we hope retailers in this country will always favour homegrown produce where they can get it and where it can be provided for.
I am not entirely sure of the noble Lord’s point, but there is a serious effort being made to understand how each retailer is managing their contractual models and whether government can and should be involved in that. We do not have a command and control economy here; we do not mandate how supply chains work. Where there is market failure, government can step in. That is why we have created a Groceries Code Adjudicator and why we can have very serious conversations with retailers if we think that they are disadvantaging homegrown producers.
On energy costs, the horticultural sector, particularly the glasshouse sector, is able to access our energy support scheme. There will be ongoing discussions about that in the future. As the weather improves and we get into spring and summer, production from UK sources and those closer to home not so dependent on areas like Morocco and Spain which have suffered these one-off—or, we hope, rare—climatic conditions will alleviate these problems.
My Lords, this situation is not exactly an exception. Before Christmas, there were empty supermarket shelves and real public concern, and the head of the NFU, Minette Batters, ended up calling out the Government’s inactivity and lack of responsibility. The Secretary of State is saying that the UK has a highly resilient food supply chain, but just this morning the former head of Sainsbury’s said that the Government’s lack of energy and support for domestic producers means that we did rather bring this problem on ourselves. Does the Minister agree with Justin King’s assessment? With supermarket shelves apparently fully stocked across Europe, is he really standing by his assertion that others are facing similar supply issues and that the current shortages in UK shops are predominantly caused by seasonal weather in the Mediterranean?
I do not quite know what Justin King is suggesting. Is he saying that the Government should tell him as a retailer how to construct his supply chain models? No. I think the Government’s job is to step in where there is market failure, support homegrown producers and ease the burdens of what one hopes are one-off events, such as the impact of the war in Ukraine on gas and electricity prices. It is the Government’s job to resolve those sorts of issues. Where we can create diversity of supply for importation through trade agreements, we should.
I would pick the noble Baroness up on one point: this is not just affecting the United Kingdom. There are similar problems in Ireland, including in Tesco Ireland, Lidl and SuperValu, which say they are experiencing availability issues with certain fruits and vegetables. Other than Ireland, there are cases in Belgium, where there are some minor issues relating to tomatoes—there are no empty shelves as yet, but prices have increased. In Finland, there is some short-term reduction in supply because of the same issues relating to Spain.
I repeat: UK growers are able to access the energy bill relief scheme. A planned reduction of government support for energy costs in the UK’s industrial horticultural sector will challenge domestic production for some of the items in question, with a likelihood that domestic yields will fall. I could, if I had time, give a great long list of how we are supporting our agricultural sector and intervening where Governments can. If noble Lords are suggesting that we should have a command and control economy that mandates supply chains, I would be interested to have a debate on that here in the House.
My Lords, I apologise to the noble Baroness. I have no sight in my right eye, and she was in my blind spot.
These global disruptions to food supply chains would have much less impact if we grew more of own produce in this country, especially if we adopted new technologies. What are the Government doing to support small growers to expand and innovate? I have a question, for my clarification. While the Government want public procurement of food to prioritise good-quality homegrown produce, the current move to creating a monopoly called the Buying Better Food agreement appears to threaten these small growers and therefore works counter to the Government’s own policy. Would the Minister please explain this seeming contradiction?
I absolutely agree with the noble Baroness that we must encourage more homegrown food supply. That is at the heart of our agriculture policy, our food strategy and all our policies supporting, encouraging and incentivising producers. The noble Baroness is also right that technology is our friend here. I have no doubt that in 10 years’ time there will be a very different profile of supply chains. Many of the current ones have been disrupted by such activities as vertical farming, which is already producing an increasing amount of leafy greens and certain fruits for our marketplace. There is really good work happening in that field.
In response to the noble Baroness’s question, and one that I did not respond to from the noble Lord, Lord Krebs, right at the front of the Agriculture Act, it says that:
“In framing any financial assistance scheme, the Secretary of State must have regard to the need to encourage the production of food by producers in England and its production by them in an environmentally sustainable way.”
I entirely take the noble Lord’s point that to do this we must be mindful of natural capital and the very important value of such ecosystems as soils in producing food. It is at the heart of government policy to support the production of food and to iron out these occasional issues through a domestic food production scheme. However, we must be mindful that, while this country produces 61% of the food that we need, we can grow 74% of it, and we must increase that through sensible policies.
(2 years, 7 months ago)
Lords ChamberI am not aware of the details of that last point, but we are working very closely with the sector. Our information is that there are concerns, but it is thought that they are containable and that the fruit and vegetables will be harvested and available for our domestic market. I assure my noble friend that we are monitoring this daily with the industry to make sure that we are getting this right.
My Lords, this is indeed a very weighty and wicked issue. In this House, it behoves us to focus down on the harsh realities of the impact of rising food prices. I do not know whether noble Lords saw this yesterday, but I was shocked to hear the BBC reporting on the shrinking of school meals as food prices rise. Children who are on free meals are, by definition, the poorest in the country. Can the Government guarantee that the inflation of food prices will not see these children suffer even more? They deserve at least one square meal a day.
There are very defined standards on school meals and I would want to know more details about how or why they are nutritionally deteriorating in the cases mentioned in that report—I did not see it myself. I can assure the noble Baroness that, yes, of course, rising food prices have an impact on the public sector. Millions of meals are served every day in the National Health Service, in old people’s homes, in prisons and in the Ministry of Defence, so the Government are feeling this as well. It is important that our most vulnerable people, particularly children on free school meals, are getting not just that meal but also one that is nutritious and health-giving.