Networking for the food industry in the East of England

FoodEast is about networking and best practice in the food and drink industry in the east of England - especially with regard to skills and innovation. You should carry on reading, and consider joining the FoodEast network, if you have a professional interest in the agri-food and drink industry in the East of England. We have around 500 companies and over 3000 individuals who have joined our network.

In the period 2000-2003, FoodFen was,formed from a pilot network of food companies in north Cambridgeshire and west Norfolk. In early 2004 the pilot was extended to the rest of the East of England Region and began work, as a privately-owned business, under the title of FoodEast. Until 2010/11 the East of England region was defined under the RDA boundaries. Hence, the East of England Development Agency (EEDA) was responsible for the counties of Cambridgeshire, Norfolk, Suffolk, Essex, Bedfordshire and Hertfordshire.

EEDA, and all the other RDAs are being abolished in 2011 and FoodEast is now extending its geographical work area to cover the additional counties of; Lincolnshire, Rutland, Nottinghamshire, Leicestershire, Northamptonshire, and Kent. FoodEast is also able to work in the Greater London area.We call this extended region the East of England.

The East of England's agrifood chain

The original East of England (EEDA) Region had a total population of 5,572,000, out of a total UK population of 60,254,000.Average weekly household income is £560, compared to the national average of £534.

82.4% of those of working age in the EoE are economically active.19.6% of these economically active residents work in the manufacturing sector, 12% of which are involved in food manufacturing.This equates to in excess of 40,000 people employed in food manufacturing in the East of England region.

There are around 500 businesses in the EEDA region concerned with food manufacturing but this does not take into account farmers for whom small-scale food production is a potential component of their business.These 500 businesses occupy about 700 business sites across the region.There are also around 22,000 farming sites in the East of England (EEDA) region.This farming group will have a relatively small proportion of professional farmers and large landowners/estates, and a much larger group of hobby farmers and multi-income or part time farms that depend upon non-farm sources of income from non-food related occupations.

Food and Drink manufacturing in the EEDA region is worth in excess of £7 billion annually.

Almost 67% of the agricultural land within the region is owner occupied, an increase of just under 8% since 1987. However, over the same period the tenanted sector in the region has declined by 5%. These figures are in line with English trend. The local authorities' County Farm Estates (CFE) are significant in terms of let land. The following table shows the area of CFE in the national context, with over one third of the farms being held in the East of England.

Farms of all sizes have shown a decline of 10%, which equates to a loss of 1,955 farms between 1987 and 1997. This is greater than the figure for England which has declined by just over 7% for the same period. The greatest decline is shown in those holdings between 20 and 50 ha in size. Holdings of this size find it difficult to fund improvements, such as the replacement of buildings and equipment, and so become less competitive and eventually no longer viable. It is likely that these farms have changed ownership and become amalgamated with others. The larger holdings benefit from economies of scale and are able to spread their fixed costs.

Within the region there is a higher proportion of farm holdings over 100 ha compared to the national average. The region accounts for 18% of the total farm holdings in England that are over 100 ha in size. The statistics suggest that the trend for fewer, larger holdings in this region is set to continue.

What is a Regional Producer?

A Regional Food Producer (RFP) is any business or individual within this region which produces food or drink. It is not necessary for the producer to be making products which are traditional to this area, nor for the firm to be a small local producer. For example, Saarlander producing German Bratwurst in Essex is just as much a RFP as a small sausage producer in Norfolk using only local ingredients and traditional local recipes.Another example would be G’s Marketing. This company has an annual turnover of c. £350million, with production operations on the region and in Spain . And giant multinationals like Tulip, Smithfield Foods, Del Monte and Nestle, all have the right to be called Regional Food Producers. Without these firms the East of England would not make a significant contribution to the region's and the nation's food economy

All businesses and individuals that produce food and drink, or who supply products and services to food and drink manufacturers, in the EoE Region contribute to the value added of produce in this region.It is important that we view all producers, from the very smallest to the very largest, and including farmers, feed manufacturers, equipment-makers and providers of all services, etc., as significant to the region’s current and future food economy. The food supply chain covers c. 50,000 jobs directly in the region and probably another 50,000 in farming and in sectors that supply goods and services for the manufacture and distribution of food and drink.

Importance of the sector to the region’s economy

The manufacturing sector in the East of England (EEDA) has an annual turnover of just over £39 billion a year, of which just over £7 billion is generated by the food industry. This makes it by far the largest single manufacturing sector in the EEDA region, with only two other sectors (machinery and automobile manufacturing) having over half the turnover of the food and drink industry.