Local Sourcing Action Plan Food and Drink for Wales. Welsh Assembly Government 2009

Transcription

1 Local Sourcing Action Plan Food and Drink for Wales Welsh Assembly Government 2009

2 Vision: A vibrant, profitable and sustainable local food and drink sector serving a network of locally based food and drink outlets accessible to all people living in or close to Wales. Contents 1 Ministerial Foreword 2 Executive Summary 3 Chapter 1 Local Sourcing of Food and Drink 13 Chapter 2 Challenges and Opportunities 24 Chapter 3 Strategic Aims, Objectives, Actions and Outcomes 30 Chapter 4 Implementation, Monitoring and Evaluation 2 ISBN This document is printed on 100% recycled paper.

3 Ministerial Foreword Local Sourcing of food and drink is one of the priorities of this Welsh Assembly Government, as set out in One Wales. There are clear benefits from increasing the amount of local food and drink purchased in Wales and other countries, where existing production cannot supply the demand of our consumers. Buying locally leads to money being reinvested in our communities. It also reduces the miles food travels, reducing carbon emissions in line with our commitments on climate change. People are now demanding to know where their food comes from and are seeking reassurances on production methods and animal welfare. They are concerned about the negative impact of food distribution systems on the environment and want their money to support producers and growers directly. In Wales we have a range of high quality local produce and I want to support local food and drink producers to be able to take advantage of new opportunities opening up in local markets. The growing demand for local and regional food and drink provides an exciting challenge for our small producers, as well as the larger producers and manufacturers. Markets are available in the major supermarkets, amongst independent shops, the public sector, the food service sector and other outlets, such as farmers markets. This strategic action plan sets out what we will do to meet the challenge and to capitalise on opportunities to increase business for our excellent Welsh food and drink companies whilst ensuring food safety management is of the highest standards. Success will be depend on all of us, including producers, growers, food processors and manufacturers, the retail and food service sector, and the public sector working together in a flexible and determined way. I look forward to working with you to achieve this vision for locally sourced Food and Drink for Wales. Elin Jones Minister for Rural Affairs 1

4 Executive Summary This Local Sourcing of Food and Drink Action Plan is to be delivered as a partnership between key relevant Divisions of the Welsh Assembly Government, the food and drink production and manufacturing sectors, local government in Wales, and the retail and food service sectors. Its overall aims are to support Welsh food and drink companies in accessing local markets and to make it easier for consumers to buy and eat food and drink from Wales, which has been produced within a reasonable distance. The plan is about coherent, sustainable actions. It is about supporting the development of food and drink companies to increase business and, safeguard and create additional jobs, whilst encouraging healthy eating, maintaining high standards in food safety, the development of local food cultures and reducing food miles in order to minimise the effect of food distribution on the environment. One of the key elements of the plan is to lead by example and to encourage the whole public sector to procure more locally sourced products. Chapter 1 sets out the background to local sourcing and its importance in relation to sustainability. It further details the current situation in respect of consumers, retail markets, the food ser vice sector and public sector purchasing. Chapter 2 discusses the challenges and opportunities in local sourcing of food and drink, and highlights some best practice case studies. Chapter 3 details the actions to be pursued in relation to the following strategic objectives: To increase the levels of local sourcing of food and drink. To increase levels of supply of local food and drink to public sector organisations. Chapter 4 covers implementation, monitoring and evaluation arrangements. 2 Local Sourcing Action Plan Food and Drink for Wales

5 Chapter 1 Local Sourcing of Food and Drink Introduction 1. The Welsh Assembly Government s One Wales document includes commitments to introduce an initiative to increase local sourcing of food and drink within Wales and to support the development of farmers markets. These commitments are relevant to the Government s pursuit of sustainable development across all rural and urban communities throughout Wales and its strategy for sustainable food production and rural development. In order to achieve this goal there is a need to foster a climate in which enterprises, in particular small and medium sized businesses, can thrive. In this context, the emphasis is on encouraging farm diversification and the development of Welsh based food and drink companies through supplying mainly, but not exclusively, local markets. 2. The UK retail market for locally sourced food and drink is growing steadily and was last year at 4.8 billion (Mintel 2008). The market includes a wide range of retail outlets, food service and the public sector. Farmers markets and farm shops are currently the fastest growing retail outlet, whilst specialist stores such as butchers, bakers and delicatessens are seeing a revival. The major supermarkets are responding to increasing demand for local food in different ways. For example, Waitrose is piloting a new Market Town store format and giving greater prominence to local food, whilst Morrisons, Tesco and SPAR have introduced major local sourcing initiatives in respect of everyday items such as bread and milk. 3. The local sourcing of food and drink within Wales supports a number of key Welsh Assembly Government policy aims such as those relating to economic development, community regeneration, improving the delivery of public services, supporting the development of rural communities, improving the health of the nation, and environmental and social sustainability. The commitment by the Welsh Assembly Government to sustainable development is paramount in all of its products and services and this action plan not only encourages the principles set out in its sustainable development scheme but highlights some of the benefits it can bring. 4. These aims relate to a number of key strategic documents. These include the new food and drink strategy and its underpinning strategic action plans, which seek to strengthen the supply of food and drink from Wales. Another such document is the Quality of Food For All strategy, which is about improving the diet of people living in Wales. This links to Appetite for Life strategy, which supports work on food and diet within schools and Food for Thought: a new approach to the public sector food procurement. Also of relevance is the Assembly Government s work on climate change, as the actions proposed in this plan contribute to the Sustainable Development Scheme and Action Plan. The Definition of Local Sourcing 5. There is no universally agreed definition of local sourcing or the geographical limits to which it relates. Various organisations apply different criteria depending on their particular business goals and priorities. Amongst multiple retailers Waitrose specifies local as within a 30 mile radius, whilst Tesco tends to equate local with regional and so all Welsh products regardless of where they are produced or processed are regarded as local to Tesco s Welsh stores. Even farmers markets have no agreed definition, although the most commonly used is food and drink from within a 30 mile radius. A recent Food 3

6 Standards Agency survey of consumers found that 40% of those interviewed regarded local food as that which is produced within a 10 mile radius, although this is contradicted by IGD research which found that 63% of consumers used the definition of 30 miles. The two key definitions used are: Local Foods as foods retailed within a 30 mile radius of their production. Regional Foods as foods sold in the same region of their production and manufacture. 6. The geography and transport infrastructure of Wales makes it difficult to actually define what is meant by local sourcing as this will clearly differ according to the area of production or manufacture and the place of purchase or consumption. In the less densely populated areas of Wales primary production is often high, so markets have to be found in urban regions which may be well over 30 miles from the place of production. Local sourcing, therefore, means different things to retailers, food service operators, public sector procurers and consumers. 7. The definition of local sourcing employed for this strategic action plan is as follows: The purchasing of food and drink through various parts of the supply chain, that are located as close to the point of consumption as reasonably possible, in the light of the needs, resources and strategic priorities of the sourcing organisation. Sustainable Development Economic Environment Social 8. The Welsh Assembly Government is committed to sustainable development in respect of all its policies and programmes. Encouraging local sourcing of food and drink can contribute to implementing that commitment in a number of ways: Research by the New Economics Foundation has shown how expenditure of around 10 on local food schemes can generate almost 26 for the local economy, whilst spending 10 in a supermarket only results in a contribution of 14 to the local economy. The more localised the food chain, the greater the return for the producer and others in the local area. On a UK basis it is estimated that the energy used for transporting and handling food is between 16-21% of the country s energy bill, thereby making a significant contribution to greenhouse gases and global warming. Local food can potentially reduce the environmental impact of food processing and distribution and take unnecessary costs out of the supply chain. Careful consideration is needed whilst procuring food within Wales border counties. The introduction of local food schemes can give communities more ownership and involvement whilst supporting their development. They have the potential to help people in deprived areas have better access to fresh food and so improve the variety of foods in their diets. In addition, there are 4 Local Sourcing Action Plan Food and Drink for Wales

7 opportunities for some communities to develop food and drink products that are representative of their areas thereby contributing to community identity. Furthermore, the teaching of cooking skills in schools and communities can promote social cohesion and improve quality of life. The introduction of local food and community food projects should be encouraged and supported, through Community First Partnerships in deprived areas. Communities should be encouraged to develop food and drink products that are representative of their areas. Sustainable Food 9. There is no legal definition of sustainable food, although the UK Sustainable Development Commission has developed one which states that sustainable food and drink: Is safe, healthy and nutritious for consumers in shops, restaurants, schools, hospitals etc. Can meet the needs of less well off people. Provides a viable livelihood for farmers, processors and retailers, whose employees enjoy a safe and hygienic working environment whether in the UK or overseas. Respects biophysical and environmental limits in its production and processing, while reducing energy consumption and improving the wider environment. It also respects the highest standards of animal health, compatible with the production of affordable food for all sectors of society. Supports rural economies and the diversity of rural culture, in particular through an emphasis on local products that keep food miles to a minimum. It is understood that there is a fine balance within this area of contribution to sustainable food systems. The monitoring and evaluation team will keep a close brief on current academic and the Sustainable Development Commission s view in this area. This action plan also recognises the key elements of the new Wales Waste Strategy and will support the dissemination of relevant information by the food and drink business networks in the regions. The Wales Waste Strategy supports the reduction of waste, emissions and increased energy efficiency throughout the whole food chain. Food Security Local Food and Health 10. Food security is linked to sustainability. It is about consumers having continual access to enough, nutritious, safe and affordable food in order to have active and healthy lifestyles, and having a reliable supply base that will withstand all sorts of crises. Whilst local authorities in Wales have done limited food planning in the past, they are now intending to bring together various disciplines to improve food security for local populations. 11. The amount and type of food that people eat, as well as the way it is prepared, has significant impact on health. Eating local, fresh and nutritional food can protect individuals health and contribute to their well being. 5

8 Whilst it is acknowledged that a significant number of those living in Wales have healthy diets, the Assembly Government is concerned about the relatively large number of people who continue to eat unhealthily, resulting in poor quality of life and a strain on the provision of health and social services. To improve the overall health of those living in Wales, the Assembly Government is, therefore, issuing a strategic plan to improve diets in Wales. This is known as Quality of Food for all in Wales and will complement this plan on local sourcing. It will aim to make it easy for people to make healthy, safe and affordable choices about the food they buy, cook and eat. It builds on the work to improve the quality and nutritional value of food available in schools through Appetite for Life and that available within Welsh hospitals. The Food Standards Agency is working with food industry partners in Wales and across the UK to reformulate food to provide healthy choices, and to introduce front of pack labelling so that it is easier for consumers to identify. This increased demand for healthy food and drink is creating a number of business opportunities for Welsh producers. Food producers and processors should be encouraged to develop products to meet the health agenda. 12. Many of the people living in both rural and urban areas of Wales experience food poverty, (the inability to obtain healthy affordable food) because they are on low incomes and have difficulty in accessing shops. Local food schemes and community food projects can provide access to fresh and nutritious food. Community Food Co-operatives have been funded across Wales by the Welsh Assembly Government over the last five years. These supply local and affordable fruit and vegetables through sustainable food distribution networks to disadvantaged communities. There are currently 180 co-operatives in existence supplying 6,000 families, with a turnover of about 1 million annually. Alongside this programme is an initiative to promote the benefits of growing, cooking and eating local food and to provide communities with practical food skills through the Open College Network. The Welsh Assembly Government is also supportive of allotments and the benefits they bring to many communities, groups and individuals. Animal Health and Welfare 13. Looking after the health and welfare of animals is important, not just for ethical reasons, but also because the way in which animals are bred, reared and prepared for consumption affects the quality of the final product. The Welsh Assembly Government is committed to ensuring high standards of health and welfare for livestock on-farm and through to the point of slaughter. The location of abattoirs close to primary producers has the potential to contribute to the processing of better quality products, whilst minimising food miles. The Current Situation (a) Consumers 14. An increasing number of people, estimated at around 40% of the adult population in Great Britain, are prepared to pay more for environmentally friendly products and consumers are keen to support regional and traditional products. Research has shown that price is the main barrier to market 6 Local Sourcing Action Plan Food and Drink for Wales

9 expansion of local foods and so the higher income groups (A, B and C1 classifications) are likely to be the main drivers, with younger shoppers needing specific targeting in order to promote the benefits of purchasing and consuming local food to this group. 15. The term local means different things to different people and organisations. In respect of some food and drink items consumers may regard local as being produced in the United Kingdom and others consider products which originate within the generally agreed definition of 30 miles as being local. Within Wales, the broadest definition of local should be employed and it should not be confined to Wales due to the accessibility of markets within the United Kingdom and further when required, where there is a strong and growing allegiance to Welsh products. 16. Consumers are becoming more concerned about the provenance of their food and are keen to support regional and traditional products, whilst producers are striving to obtain a greater return for their produce. This is within a climate whereby the Government is concerned about the links between food and the health of the nation and the impact of food production, distribution and waste on the environment. Currently, when making their buying decisions, around a third of consumers consider whether food products have been sourced locally. 17. The True Taste branding is used as a means of promoting recognised Welsh, quality food and drink products. The underlying messages of the branding are purity, naturalness, authenticity, pleasure, integrity and quality, representing good food, true taste and real pleasure. A recent survey undertaken in 2007 of awareness of the brand amongst Welsh consumers and their attitudes to buying locally produced food revealed some interesting statistics. For example, although a relatively high number of consumers purchase Welsh products their buying habits are governed more by price and quality rather than localness. The following findings from the survey are relevant to this action plan: 60% of consumers purchase on the basis of price and taste. 27% of consumers buy on the basis of whether the products have been locally produced. Awareness of Welsh brands ranges from 52% for Welsh Lamb, 5% for Rachel s yogur ts to 1% for bacon, chicken, pies and cawl. 76% of consumers bought Welsh food and drink over the last year with red meat and dair y products being the most frequently purchased food items. 46% of consumers buy because they like local produce, 47% because of taste, 30% because of quality and 15% to support the local economy. Tesco and Asda are the most popular outlets for local produce (42% and 25% respectively), whilst direct sales account for around 22%. These statistics indicate that there is a need for action in a number of areas in order to drive up the demand for local food and drink. Consumers need to be informed of the benefits of buying locally produced food and drink, especially when produced to recognised standards. 7

10 Producers and retailers should respond effectively to the increasing demand for local food of the right quality and at an acceptable price. The development of direct sales operations such as farmers markets will be supported. Hospitality establishments should be encouraged to use local food, in particular those items that have been produced to an acknowledged standard, and to promote their businesses on this basis. Research should be undertaken into further understanding consumers needs and wants in relation to the purchasing of local food. Retail Markets 18. In response to increasing consumer demand for fresh, locally produced food and drink, the retail sector has been responding in a number of ways. The retail multiple supermarkets, have each taken different approaches. For example, Tesco has appointed a network of regional buyers and held a series of local Meet the Buyer events. ASDA has local sourcing teams in each of the four UK countries and stocks about 5,000 products from around 500 specialist food producers. Morrisons has developed local partnerships and widely promote the fact that all meat sold is sourced from within the UK. Sainsbury s appointed 12 regional sourcing managers in 2007 and stocks around 3,000 regionally produced products. Waitrose prides itself on supporting local producers and uses this approach in its marketing and advertising material. The Co-operative chain has introduced over 2,000 new stocking points for Welsh food and provided a strong platform for Welsh products through having end of display units in around 50 of its stores. It has also worked on improving and developing its relationships with local suppliers. Although Marks and Spencer stocks 100% own brands, it has shown a commitment to identifying Welsh Lamb in its stores and taken the initiative to gain some insights into the Welsh food sector. SPAR and the convenience sector in Wales are also responding to the trend for local products with their take up from the 100 or so Welsh products listed by one of Blakemore s suppliers alone. 19. There has also been the development over recent years of niche, specialist, local food stores and delicatessens in particular locations to meet consumer demands for more high quality, locally produced goods. 20. Primary producers have also realised the business benefits of selling direct to consumers through outlets such as farmers markets, farm shops, box schemes, web-based selling and consumer shows. In Wales, it is estimated that there are about 50 farmers markets, whilst the number of farm shops is relatively low in comparison with the rest of the UK. Government should engage with supermarkets to encourage more local sourcing of Welsh food and drink. Welsh food and drink companies should be given support on marketing and selling to the retail trade. Primary producers should be given advice and support on direct selling, including internet sales. 8 Local Sourcing Action Plan Food and Drink for Wales

11 SPAR Convenience Store, Aberystwyth The winner of 2008/9 True Taste Award for Local Store Hero, Geoff Garrad, works hard to deliver what his customers want and that means more food and drink products from Wales. He is passionate about selling local products and is continually on the look out for new lines to add to his already extensive range. Geoff maintains regular contact with his local suppliers, meeting them weekly to ensure consistent supplies and effective merchandising. In store sampling sessions are also held to excite and motivate customers to buy tasty Welsh products. The Food Service Sector 21. Restaurants and other hospitality establishments have recognised that using local food and drink has distinct business benefits. Tourists, business people and those eating out as a leisure activity are keen to experience local food on the menu. 22. A survey of 500 food hospitality establishments in Wales during 2005, found that 88% of restaurants and 83% of hotels claimed to serve some Welsh or local food everyday. Around 84% of the sector agreed that highlighting Welsh local food on menus provides business benefits and 61% claimed that they usually highlight local produce on their menus. Although these figures do not present authoritative evidence about the amount of local food being served, they, nevertheless indicate the significance hospitality establishments attach to sourcing and featuring local food. Furthermore, visitors to rural Wales attach considerable importance to experiencing local food and drink, although there remains the perception that Wales generally does not provide a quality and distinctive food experience. 23. The Food Tourism Strategic Action Plan of the Welsh Assembly Government is taking forward a number of measures to promote the use of local food. Its strategic aims are: Improve perceptions of Wales as a destination where high quality and distinctive food is widely available. Provide an exceptional food experience to visitors based on locally sourced and distinctive food. 9

12 The Public Sector 24. The Food Tourism Strategic Action Plan addresses the need to increase the take up of local food and drink by tourism venues and hospitality establishments and to promote Wales as the home of excellent quality, local produce in a number of ways. Key activities include more joined up marketing and promotional activities between the Welsh Assembly Government s Food, Fisheries and Market Development Division and Visit Wales and encouraging the use of local food in tourism and hospitality establishments. 25. The Welsh Assembly Government s Value Wales aims to help the public sector make the best use of its resources, through improving collaborative working, promoting excellence and achieving sustainability. It works alongside public sector bodies in Wales, in pursuit of efficiency and better value public services, supporting the Assembly Government in the delivery of its One Wales commitments. Value Wales is responsible, amongst other things, for leading the sustainable procurement agenda and has the following strategic aim: For the Welsh public sector to be exemplary in maximising the economic, social and environmental benefits of its procurement activities for the benefit of the people, businesses and environment of Wales, and elsewhere. It has developed a Sustainable Procurement Assessment Framework tool, which was launched in 2004 to enable public sector organisations to benchmark their performance against others in Wales. This was followed in 2006 by the launch of Opening Doors the Charter for SME Friendly Procurement, which sets out the Welsh public sector s commitment together with guidance to SMEs wishing to supply public sector organisations. Value Wales has also developed a Pathfinder project on SME development in the food sector with the following objectives: Identify and address shortfalls in the Welsh supply base and improve the quality of tenders submitted. Improve communication and reduce bureaucracy. Bring suppliers and public sector procurement closer together. Build stronger links between procurement and sustainable development and nutrition policies. Encourage and pilot innovation in procurement. 26. One outcome from the Pathfinder project has been the guidance Food for Thought, which has been accompanied by a series of best practice case studies. The document advises procurers on various aspects concerned with encouraging local supply chains such as how to write contract specifications; appraise suppliers; evaluate tenders; and set conditions for contracts with the aim of contributing to the following goals: Providing nutritious meals. Using quality ingredients. Developing good, reliable suppliers. Minimising process costs. Looking after the environment and natural resources, and avoiding waste. Contributing to the sustainable development agenda. Demonstrating savings. Achieving continuous improvements in public ser vices. 10 Local Sourcing Action Plan Food and Drink for Wales

13 27. In 2004, Value Wales established a Welsh Public Sector Food Procurement Group, with aims focused on the development of SMEs and the sustainable development agenda. This Group reports to the Business Procurement Taskforce, which is concerned with supporting all Welsh businesses in gaining a greater share of public sector spend in Wales. The Food Group consists of procurement managers, catering managers and other key personnel from across the public sector. A smaller Food Sub-Group was established in 2006 with the following terms of reference: Identify the various supply chains that exist within food procurement. Identify the issues to be addressed via each supply chain. Consider the criteria that might be applied in determining the correct level at which contracting for food procurement should be under taken. Consider the impacts that changes elsewhere in the wider public sector may have on food procurement in Wales. 28. The Sub-Group has taken forward a number of key initiatives. These include a Food Hygiene Audit Framework for the Welsh public sector linked into the existing UK NHS contract. The framework helps food businesses satisfy themselves that they are complying with food safety legislation. It is paramount that the public sector ensures the food supplied to its consumers is of the appropriate standard of food safety management. Other work has been concerned with exploring cross-sector collaboration in public sector food procurement in order to identify some of the issues that need to be addressed and the mapping of food supply chains to assess opportunities for collaboration and improving efficiencies. In addition, a study of distribution has been funded, which highlighted the need for increased cross-sector collaboration and the setting up of regional hubs to reduce food miles and facilitate more local deliveries. The study also concluded that there was a need to improve the quality and accessibility of information on buying and deliver y volumes. 29. Value Wales has established the all Wales Sourcing Strategy, which has been a major step forward in collaborative procurement and is unique across the UK. The strategy was launched in December 2007 and supported by representatives of all parts of the public sector in Wales. The document is aimed at maximising Welsh companies shares of the 5 billion Welsh public sector spend, reducing duplication and ensuring the development of skills and knowledge transfer. 30. Tracking studies have been undertaken to assess the levels of take up of Welsh food and drink by the public sector in Wales over the last five years. The latest report indicated that there is still significant scope for increasing the supply of Welsh food and drink to the public sector as it is estimated that of a 66 million spend, the industry could potentially supply around 30 million worth spend of produce. Currently supply from the Welsh food and drink sector amounts to less than 15 million. Bread, milk and meat are the main items purchased by the Welsh public sector, with increasing amounts of local, bottled water being bought. However, it is interesting to note that supplies of Welsh milk purchased by local authorities and the higher education sectors are declining. This has been primarily due to purchasing consortia contracting with companies outside Wales because Welsh based firms have been unable to meet changing demands. However, Value Wales is working with the Welsh dairy companies in order to assist them in meeting new contract requirements. 11

14 The amount of lamb and beef from Wales sourced by the Welsh public sector is 68%. Therefore, there are opportunities to increase supplies together with those of horticultural (31%) dairy products/milk (66%) and added value dairy products (29%). Apart from increasing the supply of these areas, there are further opportunities in relation to ready meals and soft drinks. Food and drink companies should be informed of public sector tendering exercises in sufficient time to prepare an effective tender and advised to register on the Sell2Wales web-site. Food and drink producers should be given support on the public sector tendering process. The public sector should be made aware of food and drink companies in Wales which are able to meet tender requirements and encouraged to prioritise sustainable food procurement. 12 Local Sourcing Action Plan Food and Drink for Wales

15 Chapter 2 Challenges and Opportunities a) Consumers 1. Local markets provide lucrative business opportunities for a number of companies and save on distribution costs. However, demand for local food and drink is clearly driven by consumers decisions, whether as shoppers, diners, tourists, business visitors or recipients of public services. Consumers motivations for purchasing, demanding or consuming locally produced food and drink items is complex. However, there is evidence to suggest that consumers are becoming increasingly concerned about ethical and environmental issues when purchasing food. Consumer confidence in the quality and freshness of local produce is high, although young consumers are not purchasing as much local food as older consumers. 2. The promotion of Wales as the home of True Taste quality food and drink regionally, nationally and internationally helps create local markets, whilst encouraging tourism and business transactions in Wales. However, there is confusion over interpretations of local, regional, and foods with products claiming other environmental/ethical characteristics, such as organic and being fairly traded. Marketing, branding and labelling, therefore, play an important role in terms of influencing consumer decisions. Marketing, promotion and branding activities should focus on the benefits of buying and consuming locally produced food and drink, produced to recognised quality, environmental, animal welfare and other standards. The use of the True Taste branding by eligible companies will be further encouraged as a means of promoting the purchase and consumption of local food. 3. The True Taste branding acknowledges the best of Welsh food and drink and adds value to the branding, marketing and promotion undertaken by food and drink companies themselves. However, there is limited knowledge within and outside Wales of this brand, what it represents and how it promotes local sourcing. Food and drink companies themselves are engaged in branding, marketing and promotion of their products. Effective marketing and promotion should be undertaken to extol the virtues of buying locally and to recognised standards. The review of the True Taste branding will include an assessment of its value in promoting local sourcing. Efforts will be made to disseminate to the food and drink sector information, advice and guidance on increasing demand in local markets and informing them of potential business benefits. 4. Targeting children and young people is often an effective way of achieving cultural change as it is easier to influence the younger generation in understanding the benefits of buying and cooking local food. Under Appetite for Life, local authorities are encouraged to use locally produced food and drink, where possible. Once aware of the advantages of purchasing, cooking and eating local produce, children and young people are likely to pressurise their parents to alter their consumption habits and embrace change. As part of the revised Design and Technology Order in the new school curriculum, food is a compulsory material at Key Stages 2 and 3. Pupils will have opportunities 13

16 Pembrokeshire County Council s Grow It, Cook It, Eat It Project This annual five day event of fun, interactive workshops for children between the ages of 9 and 11 years old is to make them aware of the farm to fork process and the importance of healthy eating, using local produce, where possible. The project has been running for 6 years and during 2008, 1172 pupils attended from 37 primary schools. It attracts significant private sector sponsorship. At the workshops, children have the opportunity to learn how to grow plants, use local food for cooking, the importance of farming and looking after the countryside, about food labelling together with health, nutrition and food safety. to practise practical food preparation skills and consider current healthy eating messages and nutritional needs. Furthermore, the Framework for Personal and Social Education for 7-19 year olds in Wales has health and emotional well being as one of its five key themes, with a clear emphasis on food and fitness, and the importance of healthy eating. Organisations, such as Face-Cymru (Farming and Countryside Education), play an important role in educating children and young people about food and farming in a sustainable countryside by building links between schools and farmers and providing pupils, students and teachers with high quality curriculum material. Children and young people should be made aware of the positive benefits of producing, buying, cooking and eating local food and drink. 14 Local Sourcing Action Plan Food and Drink for Wales

17 5. Increasingly, people are looking to grow their own food either in their gardens or in allotments. Allotments play a vital role in connecting people to the process of food production and healthy eating, enabling them to produce fresh, cheap food whilst reducing food miles. Allotments are generally owned by local authorities and rented out to individuals and families for growing their own fruit and vegetables and possibly rearing livestock for personal consumption. The activity helps in promoting local food cultures and community cohesion, and improves health through exercise. The Welsh Assembly Government, which has policy and legislative responsibility for allotments, is keen to work with local authorities to encourage more people to grow their own fruit and vegetables. Welsh Assembly Government to develop proposals for action in discussion with the Welsh Local Government Association and the voluntary sector. Aberystwyth University The Head of Hospitality at Aberystwyth, Kevin Downing, is showing the way by introducing a healthy eating regime for students and the local community. Using the University s own commercial farms to supply the institution s restaurants and food outlets, he has quickly gained a reputation for serving healthy food with a focus on sustainability. There are now plans to use the farms to help meet the University s energy and fuel requirements in its quest for self sufficiency.

18 6. Visitors to Wales, whether for tourism or business purposes, present opportunities for promoting the purchase and consumption of local food and drink, as well as giving them a whole food cultural experience. The complementary Food Tourism Action Plan includes a number of activities in this respect such as those aimed at the promotion of food tourism products and the development of food tourism establishments. With the increasing interest in the provenance of food, there are clear advantages in the marketing and promotion within and outside Wales of food with an identified Welsh provenance. Food producers should also be encouraged to seek EU designations as a means of marketing their products widely. Further efforts will be made to encourage and support producers in achieving EU PDO, PGI and TSD, and organic status as a means of marketing and promoting their products for local consumption. 7. Welsh Lamb and Welsh Beef has obtained EU PGI status, which has helped with differentiating the products and their wider promotion. As a result, new markets have been gained that have led to a greater financial return for primary producers and others in the supply chain. The generic, geographical designation covers all lamb and beef produced in Wales and so it is important for all primary producers to utilise this branding, which is now recognised in UK markets and further afield. Hybu Cig Cymru/Meat Promotion Wales is currently considering pursuing such a designation for Welsh pork. Hybu Cig Cymru to investigate the EU quality status for the Welsh pig industr y. The EU PGI branding should be continually used to market Welsh Lamb and Welsh Beef. b) The Retail Sector (i) Supermarkets 8. The decision to source local products to serve local markets is a commercial one for the multiple retailers and not one in which the public sector can intervene. These decisions are primarily driven by consumer demand and profit levels. However, major food retail companies are also well aware of the business benefits of responding to social trends and pressures from the external and political environments, such as the need to minimise waste and limit impact of activities on climate change. The major supermarkets, in particular, are already implementing a number of measures to reduce their carbon footprint. Shortening supply chains through more local sourcing can contribute in this respect. The Welsh Assembly Government can support retailers in sourcing local and regional products, but a number of the smaller food producers and processing companies do not fully understand the implications of supplying supermarkets and are ill-equipped to meet their demands. Small and medium sized companies need developmental support to supply products locally to the major supermarkets. 9. Some, but not all, supermarkets have structures in place to source for and deliver local products to their stores, whilst other have responded to the growing consumer demand of local food in a limited way. Within Wales, through its Growing for Growth Programme, the Welsh Assembly Government is supporting local producers to develop their ranges and achieve listings with the main supermarkets. ASDA in North Wales presents a number of opportunities 16 Local Sourcing Action Plan Food and Drink for Wales

19 for new producers as the stores in the area are being prioritised for local sourcing. Morrisons have been holding meet the buyer events, whilst Tesco in the latter half of 2008 held a workshop for local producers on maximising their sales. Sainsbury s launched 11 new Welsh local lines during 2008 and agreed a further 20 Welsh products for listing. Waitrose is expanding its stores in Wales and following meet the buyer events is progressing with the listing of a number of local products. Under the Going for Growth programme support has also been given to suppliers of the 200 SPAR stores in Wales and other convenience food outlets, such as Londis and Costcutter. Going for Growth in 2007 demonstrated an additional sales of 12 million of Welsh product lines across all the sectors that were associated with the programme. The Welsh Assembly Government will engage with supermarkets to encourage more sourcing of local products to respond to consumer demand and minimise environmental impact. Calon Wen Calon Wen is a farmers co-operative of 20 Welsh organic dairy farmers. The Assembly Government s Going for Growth programme has helped the co-operative identify ways to add value to milk and to learn marketing and branding techniques. Calon Wen has also received support on new product development and developing key account management skills in order to maximise its retail sales. A new eco-milk bag has been developed and launched for the UK retail market and support from the Growing for Growth programme was critical to the success of this venture. As a result of support under the Going for Growth programme, Calon Wen has: Developed a new brand identity and marketing strategy. Increased store distribution of its poly bottle milk to Tesco in North West England. Secured listings for poly bottle milk in Waitrose, Morrisons and Sainsbur y s. Secured national listing in Waitrose for eco pack milk and butter. Increased turnover by 33% in

20 Llwynhelyg Farm Shop Jenny Davies and her husband, Teifi, won the True Taste Retailer of the Year category in 2007 for their commitment to selling fresh, high quality local produce to people living in the vicinity of their farm shop in Sarnau, Ceredigion, and visitors to the area. The farm diversification started over a quarter of a century ago when the couple decided to sell their surplus vegetables direct from the farm. Today, the thriving business stocks an enticing range of Welsh products, including pre-packed salads, home baked cakes and desserts, meats and meat products. Staff have been taken on and the business has been developed to manufacture and sell a range of hand made traditional ready meals. The store stocks around 1000 products, of which 80% are from Wales. 10. One problem identified by a number of relatively small Welsh food and drink companies is that of in store merchandising. Whilst some small and medium sized companies have been successful in achieving a national listing with a number of the retailers, they lack the resources to fund merchandising activity to ensure the product is stocked on the shelves within store and effectively displayed. A supermarket s failure to keep shelves full of particular products can lead to loss of sales and eventually a de-listing the products. Cost effective support for merchandising could be achieved through consortia of companies collaborating on employment and management of in-store merchandising staff. The Welsh Assembly Government will facilitate the setting up of collaborative merchandising projects in response to demand. 18 Local Sourcing Action Plan Food and Drink for Wales

21 (ii) Small Speciality Shops 11. Within a number of towns and villages throughout Wales and elsewhere, there are a number of small speciality grocer shops or delicatessens, many of which stock local produce. However, there is limited information held centrally on the number and location of these outlets. Furthermore, there is some evidence to suggest that food producers and processors could capitalise fur ther on the oppor tunities to increase supply to smaller food retail outlets. A database of speciality grocer shops and delicatessens will be established and arrangements made regionally to keep them informed of the availability of local products. Producers should be informed of the location of local food retail outlets and encouraged to supply these specialist shops. (iii) Direct Sales, including Farmers Markets, Box Schemes and Web Based Selling 12. During recent years there has been a growth in the number of farmers markets, box schemes and direct selling through the internet and other media. These forms of selling are becoming increasingly popular with those who seek quality, fresh local food and present opportunities for the sector. However, support for individual outlets, or schemes, is precluded under EU Regulation, although it is possible to offer generic development support under the current Rural Development Plan s Supply Chain Efficiencies Scheme. Stakeholders are, therefore, being invited to use the funding available under this scheme to establish a not for profit company to provide a range of development services to these outlets. Current figures taken from the Office for National Statistics and EnjoyEngland.com show in England they have one farmer s market for 145,977 people, where in Wales, we have approximately one for every 59,600. Thus demonstrating the greater access to these local foods than our counterparts within the UK. Food festivals and consumer events such as the Royal Welsh Food Hall have supported sales to the value of 14.3 million worth of direct Sales to the producers over the period of 2007 and (Source, Beaufor t Research, Omnibus Sur vey 2008). An independent organisation will be set up to support the growth and development of direct selling outlets such as farmer s markets, internet sales and box schemes. c) Food Service and Tourism Sectors 13. The Food Service sector is worth around 14.5 billion a year (source, IGD 2007), yet few producers specifically target the market. The sector is characterised by the strong role played by major companies such as Brakes, 3663 and within Wales, Castell Howell. The latter, as a Welsh based company, is renowned for it commitment to stocking and distributing Welsh products. Generally food service companies tend to supply the larger and medium sized hotel and restaurant groups, and leisure facilities. There are opportunities to increase the amount of Welsh food and drink products being procured by these companies, although some progress is being made. For example, a number of Welsh products have been short-listed to supply Brakes. However, it is important for producers to find appropriate routes to market through either wholesalers, distributors or establish their own distribution/retail outlets through farmer controlled businesses. Producers also need to ensure product quality and consistency, sufficient volumes, whilst getting their pricing policy right and working on developing relationships with the sector. 19

22 The Welsh Assembly Government s Food, Fisheries and Market Development Division will introduce arrangements for key account management of the food ser vice sector. Support will be made available for the collaborative ventures to set up distribution hubs. 14. A number of independent restaurants and other hospitality providers frequently source Welsh products themselves and feature local, seasonal fayre on their menus. However, there are opportunities to maximise the amount of local food being used in local restaurants and smaller, local hospitality establishments. One of the challenges is knowledge of the produce that is available locally amongst hospitality providers and its channels to market. Producers and processors are also often unaware of the extent of their local markets and how lucrative these could be to their businesses. 15. The Food Tourism Action Plan referred to earlier complements this Local Sourcing Action Plan. Both are key plans under the Welsh Assembly Government s strategy for developing the food and drink industr y in Wales. In respect of the food service sector, the former plan focuses on marketing, promotion and development, whilst the latter is more concerned with data collection and dissemination to encourage greater take up of locally produced food. However, there are several actions common to both plans. Within each region studies will be carried out on the seasonal availability of local products and this should be disseminated to restaurants and other hospitality providers. d) The Public Sector 16. The public sector in Wales spends over 66.5m on food each year of which over 20m is on fresh food. This provides opportunities for local primary producers, which if taken up could result in improved service levels less environmental impact through the development of local supply chains. However, EU procurement Regulations limit the opportunity for supporting the purchase of local food and drink because procurement which gives preference to any supplier on the basis of location is likely to be in breach of the EU Treaty. The EU s public procurement free market principle based on the value for money concept is defined as: The optimum combination of whole life costs and quality (or fitness for purpose) to meet the customer s requirement. Although under the terms of the EU compliance procedures contracts cannot be awarded on a suppliers geographical location, within EU rules buyers can legitimately specify requirements for freshness, delivery frequencies, specific varieties and production standards, such as organic, those covered by the EU Protected Food Names scheme and other quality standards. There is, therefore, scope within EU Regulations for sustainable procurement, which is defined as follows: A process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment. 20 Local Sourcing Action Plan Food and Drink for Wales