FOB Chief Executive’s Weekly News for 19th April 2021

Barclays Economic Update: UK Gross Domestic Product (GDP) Increased by 0.4% in feb’21

According to estimated data published by the Office for National Statistics (ONS), monthly UK GDP increased by 0.4% in feb’21 compared to a decrease of 2.2% in jan’21. In feb’21, GDP stood 7.8% below the pre-covid-19 levels in feb’20 and 3.1% below oct’20, when the initial recovery peak was recorded.

Monthly output in the service sector increased by 0.2% in feb’21 compared to jan’21, although output remains 8.8% lower than in feb’20 and 3.9% in oct’20. Monthly output in the production sector increased by 1.0% in feb’21 compared to jan’21, a decrease of 3.5% from feb’20. Meanwhile, monthly output in the construction sector increased by 1.6% in feb’21, compared to jan’21.

Monthly output in the manufacturing sector increased by 1.3% in feb’21, the first increase since nov’20. Output increased in 7 out of the 13 manufacturing sub-sectors. The computer, electronic and optical products sub-sector recorded an increase of 9.0% and the transport equipment sub-sector recorded an increase of 5.4%.

 

UK Total Trade Deficit Increased by £0.5bn to reach £1.4bn in feb’21

According to estimated data published by the Office for National Statistics (ONS), the total UK trade deficit, excluding non-monetary gold and other precious metals, increased by £0.5bn to reach a deficit of £1.4bn in feb’21.

In feb’21, the import of goods, excluding non-monetary gold and other precious metals, increased by 8.8% (£2.8bn). The upturn was driven by a 10.2% (£1.7bn) increase in imports from non-european union (EU) countries. The import of goods from the EU increased by 7.3% (£1.2bn) in feb’21, compared to a decrease of 29.7% in jan’21. The upturn in imports from the EU was driven by an increase in the import of machinery & transport equipment and chemicals.

The export of goods, excluding non-monetary gold and other precious metals, increased by 9.9% (£2.2bn) in feb’21. The upturn was driven by a 46.6% (£3.7bn) increase in exports to the EU.

 

Industrial Production in the Euro Area Decreased by 1% in feb’21

According to a report published by eurostat, the seasonally adjusted industrial production in feb’21 decreased by 1% in the euro area and by 0.9% in the EU compared to jan’21.

In the euro area, in terms of industrial sectors, production of capital goods decreased by 1.9%, energy by 1.2%, durable consumer goods by 1.1%, intermediate goods by 0.7% and non-durable consumer goods by 0.1% in feb’21 compared to jan’21.

In the EU, production of capital goods decreased by 1.9%, durable consumer goods by 1.0%, energy by 0.7%, intermediate goods by 0.6% and non-durable consumer goods by 0.1% in feb’21 compared to jan’21.

In terms of region, the largest decreases in industrial production were registered in France at 4.8%, Malta at 3.8% and Greece at 2.5%. Meanwhile, the largest increases were reported in Hungary at 4.8%, Ireland at 4.2% and Croatia at 3.4%.

 

UK Export of Food and Live Animals to the EU Increased by 77.4% to £700m in feb’21

According to estimated data published by the Office for National Statistics (ONS), the UK export of food and live animals to the EU increased by 77.4% to £700m in feb’21 compared to jan’21.

The data highlighted an upturn in the shipments of fish and shellfish as exporters overcome the disruptions caused due to the new regulations related to Brexit. Exporters experienced delays at borders due to additional paper work and checks introduced in jan’21.

According to a spokesperson for the British Meat Processors Association, fresh food exports are not recovering at the same pace as other goods, as barriers to trade remain unresolved. The spokesperson also stated that British meat exporters are becoming less competitive due to substantial time delays and extra costs incurred in attaining export health certification.

 

Office for Health Promotion: The DHSC has announced that the new Office for Health Promotion will lead national efforts to improve and level up the public’s health. The Office, due to launch in the Autumn of 2021 will combine PHE’s health improvement expertise with existing DHSC health policy capabilities. It will sit within the DHSC and the Office’s expert lead will report jointly into the Health Secretary and the Chief Medical Officer. The office will aim to reduce the top preventable risk factors causing death and ill health in the UK by tackling obesity, improving mental health, and promoting physical activity.

 

Public Health in England: The DHSC has published a paper setting out reforms to the public health system in England. The reforms include the health protection capabilities of PHE and NHS Test and Trace being combined into a new UK Health Security Agency, previously called the National Institute for Health Protection (NIHP). A new Office for Health Promotion will also be created and NHS England’s focus on prevention and population health will be strengthened. As these changes are implemented, PHE will close. The paper sets out the next steps and a timetable of changes, as well as inviting feedback on three questions. All comments must be submitted by 26 April 2021. The CIEH has welcomed creation of the new Office for Health Promotion and UK Health Security Agency, to strengthen and improve public health in the UK.

 

Pesticide residues in food: The European Food Safety Authority (EFSA) has published its latest report on pesticide residues in food in the EU.  Over 96,000 samples were analysed in 2019 and in 96% of them pesticide residues fell within legally permitted levels.  The project analysed samples randomly collected from 12 food products – apples, head cabbages, lettuce, peaches, spinach, strawberries, tomatoes, oat grain, barley grain, wine (red and white), cow’s milk and swine fat. Of those samples analysed 53% were found to be free of quantifiable levels of residues; 45% contained one or more residues in concentrations below or equal to permitted levels; and 2% contained residues exceeding the legal maximum, of which 1% led to legal actions. EFSA carried out a dietary risk assessment as part of its analysis of the results. This suggested that the food commodities analysed in 2019 are unlikely to pose a concern for consumer health. However, EFSA made a number of recommendations intended to increase the efficiency of European control systems.

UK Updates Guidance on Moving High Risk Food & Feed to N. Ireland: The UK government has updated its guidance on exporting or moving high risk food and feed of non-animal origin from Great Britain to the  or Northern Ireland.  The updated guidance provides new information on some categories of high risk food and feed of non-animal origin now included in the movement assistance scheme.

 

EC Consults on Organic Labelling Requirements: The European Commission (EC) is consulting until 11 May on a draft act requiring organic producers to keep records to demonstrate their compliance with EU rules set out in the new organic production and labelling regulation.
Government’s proposals to restrict marketing of HFSS foods: MPs exchanged views this week on the government’s plans for ending the advertising of high fat, salt and sugar (HFSS) products on television before 9pm.   We recently held a short consultation on how to introduce advertising restrictions for online and we will publish our response soon. a level playing field, however, is important. i want to make it easy for everyone to be healthy. Craig Whittaker highlighted the importance of a level playing field between online and mainstream broadcasters.  The public health minister, Jo Churchill, agreed a level playing field is important and said she wanted to “make it easy for everyone to be healthy.”  She also agreed with Andrew Selous’ comment that “ending junk food marketing online is hardly an outrageous assault on our freedoms, would remove 12.5 billion calories a year from children’s diets, and would allow advertisers and food companies to make plenty of money from producing and marketing healthy food”.  Jo Churchill said that “it is very important that we make the environment right to ensure that people can make the healthy choice as a default option and enjoy a healthy balanced diet where they have the full knowledge and understanding of what they are purchasing. I think this is actually a great opportunity for companies.” Craig Whittaker noted reports that the government may drop its proposed ban on online advertising of HFSS food products, adding that half of 10-year-olds and 83% of 12 to 15-year-olds own a smartphone, with 86% of those children using video on demand. He suggested that if there is no online ban “it would be absolute nonsense to ban advertising on mainstream broadcast tv where children watch very little.”  Jo Churchill reiterated the importance of a level playing field and reiterated that the government will respond to its consultation on online advertising restrictions shortly.

 

FDF Events: Thank you to all who entered the FDF awards 2021! the entry deadline has been extended to Friday 23 April for the following three categories only; digital transformation; education initiative; and emerging business. The FDF awards 2021 will be our biggest yet. We have seen a huge response to this year’s event with a record numbers of entries received, so far. So don’t miss out on this year’s opportunity.  enter now. entry has now closed for all other categories. keep an eye out for the shortlist announcement in summer!

Join us on Thursday 20 May for our virtual FDF Convention, offering a unique perspective into the key challenges and opportunities facing our sector. This year’s convention will explore the following key topics facing our industry – how the UK’s independent trade policy can give UK food and drink manufacturers the edge; we explore the role of UK food and drink manufacturing in working towards net zero; looking at the challenges for SMES and how to grow; and, we look at the next big thing in food innovation. keynote speakers include Luke Pollard MP and Emily Miles, Chief Executive, Food Standards Agency (FSA). Free for fdf members. find out more >>