FOB Chief Executive’s Weekly News for 6th July 2021

Barclays Economic Update: UK Manufacturing PMI Decreased to 63.9 in Jun’21

According to data published by IHS Markit/CIPS, seasonally adjusted UK manufacturing purchasing managers’ index (pmi) decreased to 63.9 in Jun’21 from 65.6 in May’21. The index indicated an improvement for 13 successive months.

The data indicated that the manufacturing sector maintained its growth phase in jun’21, with significant growth reported in output, new orders and employment within the sector. However, the industry is still negatively affected by supply-chain and distribution difficulties, which is causing longer vendor lead times and disruption to production schedules.

The data further highlighted significant growth rates in manufacturing production across the consumer, intermediate and investment goods industries during jun’21, supported by strong intakes of new business.

According to the data, the increase in demand was led by relaxation of covid-19 restrictions, re-opening of the UK economy and improving global market conditions. New export orders increased again in jun’21, reporting an inflow of new work from mainland Europe, the US and Asia.

Call for evidence on driver shortages

Defra is seeking more information on the impact of HGV driver shortages on the food sector. If your business has been impacted by driver shortages, we invite you to complete the attached questionnaire and return it to Cecilia.PassanitiMezzano@defra.gov.uk. Please include as much quantitative data as possible as this information will help guide future policy design.

Workplace testing extended

Free asymptomatic workplace testing has been extended for a month until the end of July. The new final date to order workplace tests is 19 July.

MPs debate value of Vitamin D supplements as a defence against Covid

Jim Shannon opened a Westminster Hall debate in the Commons on 18 June on the value of vitamin D as a defence against Covid-19 infection (the subject of our September 2020 meeting).  Mr Shannon referred to a mixture of anecdotal and academic evidence on vitamin D during his speech. The SNP Spokesperson, David Linden, highlighted the Scottish Government’s action in recognition of the importance of vitamin D to everyone’s health and wellbeing, which predated the pandemic.  The Labour Shadow Public Health Minister, Alex Norris, responded to the debate for the Opposition noting that “there is much still to understand about whether that is a genuinely causal relationship or a correlating one” between low vitamin D status and more severe outcomes from Covid-19. The Health Minister, Nadine Dorris, emphasised that the UK Government’s approach would be based on a “robust view of the data and looking at it in the round”.  She referred to the advice published by the National Institute for Health and Care Excellence, the Scientific Advisory Committee on Nutrition and Public Health England and reminded MPs that it supported existing Government advice and the recommendation for everyone to take 10 mcg of vitamin D supplement throughout the autumn and winter to protect their bone and muscle health; but that there is currently not enough evidence available to support taking vitamin D to prevent or treat Covid-19.  She also assured MPs that the Government will continue to keep evidence on this subject under review.

Nutritional value of breakfast cereals

Sarah Atherton has questioned the Government on the health benefits of consuming breakfast cereal with milk, as opposed to other breakfast products or not consuming breakfast.  In response, the Public Health Minister, Jo Churchill, said that the Government’s advice on a healthy, balanced diet is based on recommendations from the Scientific Advisory Committee on Nutrition and is captured in the Eatwell Guide. The advice includes choosing starchy carbohydrates such as breakfast cereals that are higher-fibre or wholegrain, with less added fat, salt and sugar. Ms Churchill added that “in order to meet nutritional requirements, it is important to consume regular meals throughout the day. Not eating breakfast may make it more difficult to meet recommended intakes of certain nutrients, such as fibre, B vitamins, iron and folate, commonly found in some breakfast cereals, and calcium found in milk.”  Ms Atherton also questioned the Minister on inconsistencies in the application of the nutrient profiling model to breakfast cereals. She heard that the current nutrient profile score for breakfast cereals is calculated on 100 grams of the product as sold, on a dry weight basis.  When the model was reviewed in 2007 this method was retained, rather than adopting a per portion approach, in order to avoid unnecessary complexity given that there are few UK dietary recommendations on portion sizes and inconsistent portion sizes are suggested on product labelling.

Changes to EHCs for exports to the EU from 21 August 2021 The EU is making changes to its laws, which means it is necessary to update the Export Health Certificates (EHCs) and Notes for Guidance used to export goods to the EU. If you are a GB trader that exports certain animals, germinal products and products of animal origin (POAO) to the EU, these changes will affect you. GB traders exporting to the EU will need to use the new EHCs from 21 August 2021. Current EHCs signed before 21 August may be used until October for goods on route to the EU. In April, Defra made available new EHCs for composite products, some POAO and a new private attestation for composite products that are exempt from certification by an Official Vet or a Food Competent Certifying Officer (FCCO). You can find further information here. Defra has shared details of webinars they are hosting on these changes. Details of these are included in the annex. The new certificates represent changes for all commodities, but the most significant changes affect: Composites, Germinal Products, Meat Products, Fish and Animals from Confined Establishments. Defra will provide webinars where there are significant changes for commodities, as well as summary documents for use by traders.