Dear All,
Detailed below is the Weekly News for 26th April.
Going forward it is likely the Weekly News will appear on a Tuesday rather than a Monday.
Have a good week.
Gordon Polson
Chief Executive – Federation of Bakers Ltd
FOB Chief Executive’s Weekly News for 26th April 2021
UK Output Producer Price Inflation Stood at 1.9% During the 12-Months to Mar’21
According to data published by the Office for National Statistics (ONS), output producer price inflation (ppi) stood at 1.9% during the 12-months to mar’21, up from 0.9% during the 12-months to feb’21. Mar’21 reported the third consecutive month of a positive rate and the highest annual rate since apr’19. Meanwhile, monthly output ppi stood at 0.5% in mar’21, compared to 0.7% in feb’21.
In terms of product groups, 5 out of 10 groups provided a positive contribution to output ppi. Transport equipment provided the largest upward contribution of 1.79% and reported positive annual price growth of 0.4% in mar’21. Metals, machinery and equipment provided the second-largest upward contribution of 0.68%.
Meanwhile, input ppi i.e. inflation for materials and fuels purchased by manufacturers, stood at 5.9% during the 12-months to mar’21, compared to 3.3% during the 12-months to feb’21. Metals and non-metallic minerals provided the largest upward contribution of 2.7% to the input ppi during the same period. The monthly input ppi rate in mar’21 stood at 1.3%, compared to 0.9% in feb’21
Manufacturing Output Remained Unchanged in the Quarter to Apr’21
According to the Confederation of British Industry (CBI) quarterly industrial trends survey, manufacturing output remained unchanged in the quarter to apr’21. business sentiment increased by 38%, recording the quickest increase since apr’73. The survey was conducted with 288 manufacturers.
The survey indicated output growth in 11 out of 17 sectors. The growth in the electronic engineering and aerospace sub-sectors was majorly offset by declines in the food, drink & tobacco and motor vehicles subsectors.
Total new orders increased by 5% in the quarter to apr’21, recording the quickest growth since apr’19. Domestic orders increased by 6%, reporting the fastest rate since jul’18, while export orders remained unchanged in the quarter to apr’21. The survey also reported a rebound in investment intentions, with manufacturers expected to increase spending on buildings, plant & machinery, product & process innovation, and training & retraining in 2021 compared to 2020.
Collaboration Between Food & Drink and Machine Manufacturers Needed to Improve Efficiency
According to a research paper from Siemens, better collaboration between food and drink and machine manufacturers is needed to improve productivity and efficiency. Siemens interviewed more than 25 UK food and beverage manufacturers, along with machine manufacturers, who provide the former with the machines for production and packaging.
The research highlighted that food manufacturers need to accept that digital transformation and the use of data are pivotal in overcoming the challenges related with productivity and efficiency. Meanwhile, machine manufacturers need to identify their role in digital transformation by supporting end users with better machinery. The research also highlighted five areas for collaboration for food & drink manufacturers, machine manufacturers and technology providers. These areas include data-driven innovation, combining people, process and data, finance, joint vision for sustainability and sharing best practice from other heavy heat and energy users.
UK Government to Set its New Climate Change Target into Law to Reduce Emissions by 78% by 2035
The UK government announced that it will set its new climate change target into law to reduce emissions by 78% by 2035 compared to 1990 base levels. The new target will become law by the end of jun’21.
The government also published its sixth carbon budget, wherein, it will limit the volume of greenhouse gases that can be emitted over a 5-year period from 2033 to 2037. The sixth carbon budget, for the first time, will incorporate the UK’s share of international aviation and shipping emissions. This forms an important part of the government’s decarbonisation efforts that will allow for these emissions to be accounted for consistently.
Implementing the proposed restrictions on HFSS food promotions
Ben Bradley has asked the Government if it will consider non-regulatory options for implementing its proposed restrictions on foods high in fat, salt and sugar (HFSS). In response the Public Health Minister, Jo Churchill, said that “non-regulatory options have been considered as insufficient to reduce the excess purchasing and therefore overconsumption of products high in fat, salt and sugar (HFSS). Previous voluntary actions by retailers, including through measures such as the public health responsibility deal, had limited impact. Businesses have also stated that voluntary action on promotions is not feasible.” She added that the Government wants “to create a level playing field in which stores that make voluntary progress are no longer penalised.” The response to the consultation on restricting promotions of HFSS food and drink made clear the Government’s intention to use powers in the Food Safety Act (FSA) 1990 to lay secondary legislation before Parliament by mid-2021. [Source: Parliament website 20 April 2021]
EFSA guidance on food information for consumers
The European Food Safety Authority (EFSA) has published guidance for business to help food suppliers decide what information to give consumers about storing food and time limits for consumption. Setting a time limit for consumption is complex, but the guidance developed by EFSA’s experts is intended to assist food suppliers in deciding whether it is appropriate to give consumers other instructions in addition to the “use by” or “best before” dates. For those products where opening the packaging may lead to a growth of harmful bacteria, the tool indicates that the time limit for consumption is shorter than the initial “use by” or “best before” date. The guidance also includes advice on good practices for defrosting food safely. [Source: EFSA website 22 April
Reminder of new EU Animal Health Regulation
The new EU Animal Health Regulation (AHR) and composite rules came into force from 21 April 2021. A compilation of supporting documents and guidance were shared earlier this week. Read more here.
Traffic management measures in Kent stood down as trade returns to normal
Hauliers no longer need a Kent Access Permit to travel between the UK and the EU. Read more here.
Campaign urges public to get tested twice a week
Everyone in England is eligible for free rapid COVID-19 tests, twice a week. Read more here.
Digital assets for food and drink businesses
We publish digital assets on our Food and Drink Dropbox Paper page. These include a webinar talking through guidance on Rules of Origin for agri-food businesses and FAQs covering key information on Rules of Origin and food labelling. There will be further updates to the products hosted on the Dropbox Paper page over the next few weeks, so please do return to the page to ensure you are viewing the latest content.
Moving Goods Trader Showcase migration
The online Trader Showcase site that you’ve been using to find out about the new rules for moving goods to Northern Ireland and exporting to the EU has been migrated to two new locations, which you can access by using the links below:
- Moving goods from Great Britain to Northern Ireland
- Exporting goods from Great Britain to the European Union
The new Trader Showcase has been developed using Dropbox Paper, which usually requires users to have an account to access content. We recommend opening a free account – which involves a basic registration process – if you don’t already have one.
The new Trader Showcase site works with most modern browsers, but is best viewed using Chrome, Firefox, Safari and the latest two versions of Edge.
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:
- Exporting Live Animals
- Exporting Products of Animal Origin
- Exporting Equines
- Exporting Composite Goods
- Exporting Fish and Fishery Products for Human Consumption
- Export Health Certificates.
EU Settlement Scheme
Free movement ended at 23:00 on 31 December 2020. To remain in the UK after 31 December 2020, non-EU and EU citizens will need to have a UK immigration status.
EU citizens, and relevant family members, resident here before the end of 2020, will be eligible for the EU Settlement Scheme. We encourage EU citizens in the UK to apply to the EU Settlement Scheme if they have not already done so, there’s still plenty of time. The deadline for applications to the EU Settlement Scheme, for those resident here before the end of 2020, is 30 June 2021. Please visit the gov.uk page for more information: https://www.gov.uk/settled-status-eu-citizens-families.
A leaflet on EU, EEA and Swiss citizens’ right to work in the UK is also available on gov.uk.
For those arriving from January 2021, they can apply under the new arrangements of the UK’s points-based immigration system.
Points-based Immigration system
On 1 January 2021 the government introduced the new points-based immigration system, under which EU and non-EU citizens are treated equally.
Phase 2 of the Home Office’s communication campaign, to ensure businesses are ready for the new points-based immigration system, is now underway and will run until the end of March 2021. The nationwide marketing campaign will continue to use a wide range of channels to reach employers, including radio, social media, digital, and outdoor advertising.
Phase 2 will build on activity to date, continuing to raise awareness and understanding that there is a new immigration system. The key messages to communicate to businesses are that free movement has now ended and there are new requirements with which audiences must comply. The way UK businesses hire from the EU is changing, and to recruit from outside the UK they will need to be a licensed sponsor.
Please visit the campaign page for more information: GOV.UK/HiringFromTheEU.
Translated information for EU nationals is available here – https://www.gov.uk/guidance/the-uks-points-based-immigration-system-information-for-eu-citizens
The Home Office has also launched a podcast for businesses which explains the new immigration system and how employers can prepare. The podcast is available to listen via:
Acast , Apple or Spotify
Webinar: An Update on Extended Producer Responsibility Legislation
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