FOB Chief Executive's Weekly News for 1st February 2021

Barclays Economic Update: UK Flash Composite Output Index Decreased to 40.6 in jan’21

According to data published by IHS Markit⁄CIPS, the UK flash composite output index decreased to 40.6 in jan’21 from 50.4 in dec’20. The downturn was a result of national lockdown restrictions, which impacted trade and consumer spending at the start of 2021.

The seasonally adjusted IHS Markit/Cips Uk flash manufacturing purchasing managers’ index (PMI) decreased to 52.9 in jan’21 from 57.5 in dec’20. Lower levels of new orders, reduced employment and depletion of pre-production inventories were the main factors weighing on the headline PMI.

The report indicated a marginal increase in production volume, while the rate of expansion decreased in dec’20. According to the survey respondents, weaker export orders and short-term supply chain difficulties contributed to the slowdown in output growth.

The seasonally adjusted HIS Markit/CIPS flash UK services PMI business activity index decreased to 38.8 in jan’21 from 49.4 in dec’20 due to a significant decrease in total business activity. Lower levels of activity reflected cutbacks to both business and consumer spending at the start of 2021.

Campden BRI: Follow the link for two good articles. One on bread and one on enzymes https://yourcampdenbri.co.uk/2I5E-1PG8O-BBE6E4103B4E68D197F9689581DDBC30D90CEC/cr.aspx

UK Food and Drink Manufacturers Offer More than 400 Kickstart Jobs

Food and drink manufacturers across the UK achieved their plan to offer c.400 job placements to young people as part of the government’s kickstart scheme.

The plan was jointly led by the National Skills Academy for Food & Drink (NSAFD) and the Food and Drink Federation (FDF), where 400 young people will be provided industry experience and a wage during their six-month job placement.

All participants who complete their placement will be provided with a food and drink manufacturing ‘passport’ confirming their readiness to take up a job in the industry, along with an employability programme delivered by Youth Employment UK.

Parliamentary Update: Scope of restrictions on promotion & advertising of HFSS food products

Greg Smith has questioned the Defra Secretary, George Eustice, on the inclusion of breakfast cereals in proposed restrictions on the promotion of foods high in fat, salt or sugar (HFSS), adding that it is causing real concern to cereal growers in his constituency and the wider breakfast cereal industry, “particularly as there is no allowance for the naturally occurring sugars and fats from the dried fruits and nuts often put with cereals such as granola, porridge and muesli.” Citing the impact on UK farmers of these proposals he asked Mr Eustice “to see more common sense applied to breakfast cereals”. In response George Eustice said that “cereals are an important source of healthy food and breakfast cereals will be captured by DHSC’s policy only if they are classified as HFSS, and the nutrient profiling model used by Public Health England accounts for the nutritional benefits of cereals, fruits and nuts.” Christian Wakeford has also questioned the Government on whether it plans to exempt products that are high in protein and low in sugar from its ban of online advertising for unhealthy foods. In response the Public Health Minister, Jo Churchill, confirmed that the current proposal for what food and drink is classed as in scope of further advertising restrictions online and on TV, is to use the categories originally put forward by Public Health England (PHE) as part of the calorie reduction programme, sugar reduction programme and the soft drinks industry levy overlaying this with the 2004/05 Nutrient Profiling Model. Officials are considering the final list put forward by PHE as well as consultation feedback to come to a final decision on what products are in scope and the Government will publish its full response to the consultation shortly. The Government response to the 2019 consultation on restricting promotions of HFSS foods by location and price confirmed the categories in scope of the restrictions and that the 2004/05 Nutrient Profiling Model will be used to define whether a product in these categories is HFSS. The Nutrient Profiling Model uses a simple scoring system where points allocated for ‘C’ nutrients (fruit, vegetables and nut content, fibre and protein) are subtracted from ‘A’ nutrients (energy, saturated fat, total sugar and sodium). Foods scoring 4 or more points, and drinks scoring 1 or more points, are classified as ‘less healthy’ and will be subject to the restrictions.
Consultation on draft regulations for enforcement of HFSS food promotion restrictions
The Government is consulting on draft regulations to enforce the restrictions on promotions of foods high in fat, salt and sugar (HFSS) which it announced it would introduce in July 2020, following its 2019 consultation on these issues. The planned restrictions will prevent the promotion of HFSS products by volume (such as “buy one get one free”) and location both in store and online in England. The draft regulations cover enforcement powers and penalties for non-compliance. The regulations are expected to come into force on 6 April 2022. This technical consultation does not revisit policy decisions already taken but seeks to ensure that the legislation is clear and unambiguous and can be implemented effectively once enacted. The deadline for responses is 22 February 2021.

Brexit Updates and Reminders:

Export of animals and products of animal origin (POAO) from Great Britain to the European Union guidance

Please find here our latest information regarding the export of animals and products of animal origin (POAO) from Great Britain to the European Union.

Links to Defra’s Exporter Journey GB to EU Webinars

Links to our recorded webinars on the GB to EU Exporter Journey are now available on YouTube. Please share with anyone who may find this information useful. The topics are:

Moving Goods from GB to NI Trader Showcase site

We have created a one-stop shop of key information, documents and assets for traders who move live animals, animal products, plants and plant products from GB to NI. Find it here: https://shwca.se/MovingGoodsGBtoNI. Please make sure your internet browser is up to date in order to access this link.
The type of information available includes process maps, understanding high risk and low risk consignment documents, information on schemes to support traders, and FAQs.

Latest haulier testing guidance
A negative test result remains valid for entry to France for 72 hours, so you have plenty of time to get tested before/at the start of your journey.

Over 30 Information and Advice Sites across the country provide free testing. Get tested at an Information and Advice Site at the start of your journey. Testing sites nearest Kent are busy and you will experience delays. You should not wait to reach Kent to get tested.

You can find a list of Information and Advice Sites here.

Hauliers can also get an authorised negative Covid test from a private testing facility and firms may have their own arrangements.