Dear All,
The big news this week is the decision to add folic acid to non wholemeal flour. It was not unexpected but was a long time coming. It will take, I suspect, sometime, years to be implemented. Its introduction has to run parallel with the current review of the Bread and Flour Regulations and of course give time for labelling changes.
If you have/anticipate ant CO2 issues please see note below.
Have a good week.
Gordon Polson – Chief Executive
Folic Acid: The UK Government has published its response to the 2019 consultation on the Proposal to add folic acid to flour to help prevent neural tube defects in fetuses via this link: https://www.gov.uk/government/consultations/adding-folic-acid-to-flour/outcome/proposal-to-add-folic-acid-to-flour-consultation-response.
As you are aware this has been a long awaited decision. I have still to get details on dosage, timing and who will pay for it, although I think we can assume industry will be expected to pay.
If you have any questions please get in touch.
CO2 Shortages: I trust you are all aware of the challenges to the availability of CO2. Defra has now requested affected businesses complete the following short questionnaire by replying to Jenn Farrell, via Jennifer.Farrell@defra.gov.uk
I would appreciate it if you could advise Kate.Halliwell@fdf.org.uk if you respond to Defra, and where possible share the information provided, any of which FDF will of course keep in the strictest confidence. This will help FDF to monitor the situation.
If you are an FDF member and are interested in being kept up to date on CO2 shortages please ensure you are signed up to FDF’s Carbon dioxide shortages alerts.
UK Gross Domestic Product (GDP) Increases 0.1% in Jul’21
According to estimated data published by the Office for National Statistics (ONS), UK GDP increased 0.1% in jul’21, compared to an increase of 1% in jun’21. The level of GDP in jul’21 was 2.1% below the pre-pandemic level in feb’20.
Additionally, production output increased 1.2% in jul’21, compared to a 0.7% decrease in jun’21. This was the main contributor to GDP growth and was driven by an increase in mining and quarrying activities by 21.9% in jul’21.
In jul’21, both manufacturing and services output remained flat, compared to an increase of 0.2% and 1.5% respectively in jun’21. The negative contribution to manufacturing was accounted for by a 4.3% decrease in machinery and equipment and a 3.3% decrease in the manufacture of fabricated metal products in jul’21.
In the quarter ending jul’21, GDP increased 3.6%, due to a 4.5% increase in the services sector during the same period. This was driven by the gradual reopening of accommodation, food service activities, non-essential stores and the increase of school attendance.
UK Output Producer Price Inflation Increases to 5.9% y-o-y in Aug’2
According to data published by ONS, output Producer Price Inflation (PPI) increased to 5.9% y-o-y in aug’21 from 5.1% y-o-y in jul’21. In terms of product groups, transport equipment provided the major contribution of 2.07% points. Petroleum products saw the highest annual growth rate of 50.4% in aug’21.
Furthermore, the monthly output PPI stood at 0.7% in aug’21, down from 0.8% jul’21. The monthly input PPI stood at 0.4% in aug’21, down from 1.3% in jul’21. Additionally, the annual rate of imported inputs increased to 4.6% in aug’21, unchanged from jul’21.
Whereas, the annual rate of input inflation increased 11% in aug’21, up from 10.4% in jul’21. This was driven by an increase in the metals and non-metallic minerals growth of 21.1% in aug’21.
UK Total Exports of Goods Decreases 1% in Jul’21
According to estimated data published by ONSs, total exports of goods in the UK, excluding precious metals, decreased by 1% i.e. £0.3bn in jul’21. The downturn was due to a decrease in exports to European Union (EU) by 6.5% (£0.9bn) in jul’21.
In jul’21, total imports of goods, excluding precious metals, decreased 0.3% i.e. £0.1bn, due to a 0.5% decrease in imports from EU countries. While, imports from non-EU countries remained flat.
Additionally, in May’21-jul’21, the total imports of goods, excluding precious metals, increased 5.8% i.e. £6.3bn. While, total exports of goods increased 5.7% i.e. £4.5bn during the same period.
in May’21-Jul’21, the total UK trade deficit, excluding precious metals, increased £1.5bn to £4.9bn. Moreover, the trade in services surplus increased by £0.4bn to £28.5bn during the same period.
UK Government Extends Exports Support for Farmers and the Food and Drink Industry
During the Back British farming day 2021, which was celebrated on 15th sep’21, the UK government announced plans to extend exports support for farmers and the food and drink industry. The UK agri-food sector contributes c.£20bn in exports each year, however, only 20% of companies are engaged in exports.
The plans include appointment of representatives to explore key markets across the world, establishing a drink exports council for strategy expansion and strengthening technical expertise & producers’ understanding of export markets.
Timeframe indicated for UK Government’s response to the National Food Strategy Review
In response to a Parliamentary Question from Stuart Anderson MP on Henry Dimbleby’s independent review of the food system, Victoria Prentis MP responded that the Government will “consider the review carefully, and respond with a White Paper in the next six months” [emphasis added].
FSA Board backs new annual report
The Food Standards Agency (FSA) has announced that an annual report on food standards will be launched in 2022. The report, to be written jointly with Food Standards Scotland (FSS), will provide an opportunity for the FSA and FSS to set out “the state of the nation’s plate”, using a wide range of evidence to examine whether food standards in the UK are being maintained, are falling, or improving.
Carbon footprint and food labelling
DEFRA gave its support (in principle) to a Parliamentary Question from Rachael Maskell MP on the “merits of introducing a carbon rating system on food labelling to indicate to consumers the carbon footprint of their food purchases”. The response stated that measuring the carbon footprint from food is “complex” and that “no single metric can yet capture the full picture”. The Minister noted that work was ongoing in this area and that “the benefits of a standard approach in defining metrics and capturing, calculating, and recording data for greenhouse gas emissions reduction” were recognised.
The UK has been chosen by the World Health Organisation to lead a new Sugar and Calorie Reduction Network to take global action on sugar and calorie reduction. Read more here.
Up to 50,000 more HGV driving tests will be made available each year due to Government actions streamlining the testing process and tackling the worldwide lorry driver shortage. Read more here
The Government has set out a new timetable for introducing full import controls for sanitary and phytosanitary (SPS) goods being imported from the EU to the UK.
The controls will now be phased in across 2022:
From 1 January 2022
From 1 July 2022
All current controls for live animals, POAO under safeguard measures and high priority plants and plant products remain unchanged.
In addition, the following customs controls will be phased in:
The new timeline allows importers, exporters and EU certifiers more time to prepare for the requirements and controls. It will ensure we reduce any anticipated disruption when these measures are introduced.
Read more here. The full ministerial statement can be found online
We recently hosted three webinars on “new requirements from October 2021 for importing goods from the European Union into Great Britain.”
You can also find all our resources on our microsite to which we will regularly add guidance and information documents.
