FOB Chief Executive’s Weekly News for 17th May 2021

UK Gross Domestic Product (GDP) Decreased by 1.5% in q1’21

According to estimated data published by the Office for National Statistics (ONS), UK GDP decreased by 1.5% in q1’21, compared to a decrease of 6.1% in q1’20. The level of GDP in q1’21 was 8.7% below the pre-pandemic level in q4’19.

Production output decreased by 0.4% in q1’21, primarily due to a 0.7% decrease in manufacturing. Production output stood 3.6% below the pre-pandemic level in q4’19, while manufacturing output was 3.4% less than the pre-pandemic level. The downturn in manufacturing output was driven by an 8.5% decrease in the manufacturing of transport equipment. However, the manufacturing of pharmaceutical products increased by 5.6% in q1’21.

In q1’21, services output decreased by 2.0% and stood 8.7% below the pre-pandemic level in q4’19. The decrease in output of the education, accommodation & food services, and the wholesale & retail sectors led to the decrease in output in the services sector. meanwhile, construction output increased by 2.6% in q1’21, although it is still 3.4% below q4’19 levels.

UK Total Trade Deficit Decreased by £8.4bn to Reach £1.4bn in q1’21

According to estimated data published by the Office for National Statistics (ONS), total UK trade deficit, excluding precious metals, decreased by £8.4bn to reach a deficit of £1.4bn in q1’21.

Total imports of goods, excluding precious metals decreased by 12.3% to £14.5bn in q1’21 from q4’20. This was the first quarter since jan’97 when the import of goods from non-EU countries was higher than from EU countries.

In q1’21, total exports of goods, excluding precious metals, decreased by 8.7% from q4’20 to reach £7bn. Trade in services imports were £13.4bn (27.9% lower than q1’20), while exports were £10.4bn (14.0% lower than q1’20).

In monthly terms, exports of goods, excluding precious metals, with the EU, increased by £1.0bn (8.6%) in mar’21, while imports increased by £0.8bn (4.5%). The upturn in trade was driven by the trade of cars. Imports of goods from non-EU countries, excluding precious metals, increased by £1.5bn (8.4%) in mar’21, driven by imports of clothing.

UK Businesses Expected to Change Their Practices Post Brexit and Covid-19 Lockdown Restrictions

According to a survey report by MHA, 61% of manufacturing and engineering businesses in the UK have changed their practices as a result of Brexit in terms of additional paperwork.

The report also found that in order to overcome the impact of covid-19, 24% of businesses are planning to increase investment slightly or significantly more than what they had planned before the pandemic, compared to 19% businesses in sep’20. The percentage of businesses making no changes in their supply chains decreased to 45% from 65% in sep’20.

In terms of region, 45% businesses in the north West reported their plans to spend significantly less in the next twelve months as they focus more on working capital to meet expected increases in demand. In the midlands, 45% of businesses reported changes to the product mix, whether by design or due to supply chain issues.

Invitation to join the NI-GB Food Supply Chain Forum

Defra are establishing a new industry forum for all businesses within the agri-food supply chain and moving goods between Great Britain (GB) and Northern Ireland (NI).
The NI-GB Food Supply Chain Forum aims to create a community for open discussion of issues affecting business. It will focus on operational implementation issues in the main and ensure the open communication of relevant policy and delivery developments associated with movements into and from NI.

Please find further details in this document. If you have any questions about the forum in the meantime, please email NIGBFoodSupplyChainForum@defra.gov.uk. You can register your interest in joining the forum online. Please refer to our privacy notice so you know how your personal data will be used.

Calorie labelling on menus to be introduced in cafes, restaurants and takeaways

Regulations were laid in parliament this week that will require large businesses with 250 or more employees in England, including cafes, restaurants and takeaways, to display the calorie information of non-prepacked food and soft drink items that are prepared for customers from April 2022.

HSE and Pesticide MRLs Update: HSE have set up pages on our website confirming new GB MRLs (including import tolerance based MRLs) and review-based GB MRLs that either have been, or are proposed to be, set. These include documentation further detailing the decisions.

Please see the following links:

https://www.hse.gov.uk/pesticides/mrls/new-mrls.htm  This includes a link to an excel spreadsheet with information (at the bottom of the page under the section ‘Search for evaluation reports, reasoned opinions and decision documents’).

https://www.hse.gov.uk/pesticides/mrls/mrl-reviews.htm  Again, this includes a link to an excel spreadsheet detailing proposals (at the bottom under the section ‘ Updates on MRL reviews’ allowing you to search for relevant draft and final reasoned opinions, decision documents, SPS notifications and status updates). Please note we are yet to publish specific information in the excel document but will do so shortly, when we publish our first review-based proposals/decisions.

With respect to review-based MRLs  can confirm that we are in the process of developing a GB review programme for active substances and will do so for MRLs.  However in the meantime we will carry out specific reactive review exercises if information comes to light calling into question the consumer safety of existing GB MRLs. The review spreadsheet above will contain information on those exercises as well as some legacy-based reviews that are following through on EU assessments to which we were a party prior to exit.

Attached is a presentation setting out basic information on the new GB pesticides regime and how it applies with respect to MRLs: National pesticides regimes going forward

Waste – Guide on Maximising Food Surplus Redistribution – GB The IGD published on 5 May 2021 a guide to help manufacturers increase their redistribution of surplus food, entitled: ‘Maximising food surplus redistribution: a guide for food manufacturing businesses’. Companies are invited to share their feedback on the guide, launched in connection with the Government Food Waste Champion Ben Elliot and WRAP, together with examples of what works, so that other organisations can benefit. This guide is the first step in a new programme of work on redistribution from IGD. The next phase will be the launch of an online redistribution hub, expected in June this year. The hub will host resources to help businesses in accelerating food surplus redistribution.

Occupational Health – Occupational Safety and Health Strategic Review – UK The Institution of Occupational Safety and Health (IOSH) announced on 28 April 2021 that it would take on the Occupational Safety and Health Consultants Register Ltd (OSHCR) as one of its companies. This follows a strategic review by HSE which found that UK-based SMEs are still in need of OSHCR and its brand reputation is still strong. The new OSHCR structure is focused on setting new standards of health and safety advice, robustly guaranteeing the quality of service given by all consultants on the register and service improvements are planned over the next year. The CIEH, which sits on the advisory body for OSHCR has welcomed this outcome. It has highlighted that it will continue to work together with the other organisations and professional bodies to help strengthen the role of this Register going forward.

EFSA Guidance on Date Marking and Related Food Information – EU The EFSA published on 22 April 2021, Guidance on date marking and related food information: part 2 (food information). This guidance forms the second part of the EFSA Scientific Opinion, with part 1 on date marking having been published on 2 December 2020. Part 2 focuses on information given to consumers on storage conditions, time limits for consumption after opening and thawing practices (so called “secondary shelf-life”). A decision tree is included to help food business operators in deciding whether additional information about storage conditions and time limit for consumption after opening the package is appropriate. Advice on good practices for defrosting food safely are also included.

GMOs – Study on New Genomic Techniques Published – EU The European Commission published on 29 April 2021 a study regarding the status of New Genomic Techniques (NGTs) under EU law. The study shows that NGTs have the potential to contribute to a more sustainable food system as part of the objectives of the European Green Deal and the Farm to Fork Strategy, thereby benefitting many sectors. Concerns were highlighted on the possible safety and environmental impact on biodiversity, the coexistence with organic and GM-free agriculture, as well as labelling. It also finds that the current GMO legislation, adopted in 2001 is not fit for purpose for these technologies. The European Commission will therefore launch an impact assessment and consultation to explore policy options concerning the regulation of plants derived from certain NGTs.