Welcome to FoodEast    

Networking for the food industry in the East of England

In the period 2000-2003, FoodFen, a private/public cluster initiative, built a pilot network of contacts in Cambridgeshire and west Norfolk. From the 1^st April 2004 the pilot has been extended to the rest of the East of England Region and works under the title of FoodEast Ltd.

The  East of England's agrifood chain

The East of England (EoE) Region has 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 510 businesses in the EoE concerned with food manufacturing in the strictest sense, but this does not take into account farmers for whom small-scale food production is a potential component of their business.  These 510 businesses occupy 735 business sites across the region.  There are also 22,307 farming sites in the East of England Region.  This farming group is understood to include 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 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.

Within the southern parts of the region, farms are often sold to the incoming residential population. The incomers may farm on a contract basis or maintain only amenity land around the farmhouse. This has the effect of increasing the extent of 'horseyculture' which has a negative impact on farmland habitats and the landscape.

The implications of amalgamation and fragmentation and the trend towards an increase in the number of larger units will have to be taken into account in any Rural Development measures. This restructuring will influence the extent to which opportunities will exist to develop viable units in the future.

What is a Regional Producer?

It can be argued that 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. £250million, with production operations on the EoE and in Spain .  Without these firms the EoE will not make a significant contribution to the nations food economy

All businesses and individuals that produce food and drink 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, as significant to the region’s current and future food economy.

There are many cogent arguments for supporting RFPs – social as well as economic. This proposal is designed to offer a sustainable model and support framework that will assist those wishing to develop local food chains market development and those seeking greater economic growth by accessing the national and international food and drink retailers and wholesalers.

 Micro-businesses within the food industry

If a micro-business is considered as having fewer than 5 full time staff, then 250 (34%) of the food and drink manufacturers in the region can be considered as micro-businesses.  The significance of micro-businesses varies between sectors within the food and drink industry, as illustrated by Figure 1.2. It is clear from this that micro-businesses have a role in the food and drink industry in the East of England. However it is also important to consider that 66% of businesses in the food and drink industry in the EoE Region are not micro-businesses and are responsible for 98% of employment within the sector and 1.5% of the total employment within the East of England[1]. Co-ordination of the region’s food sector must appreciate this structure.

  Figure 1.1 Percentage of Businesses per sector which are micro-businesses in the EoE

  Distribution of size of businesses

 The breakdown in the sizes of business sites in the food and drink industry is outlined in Figure 1.2. 

 Figure 1.2 Number of employees per business site, 2006, in the EoE  

 The largest 45 businesses, each with over 250 employees, are from the following sectors;

 Figure 1.3 Sectors in the EoE in which firms have over 250 employees

  Importance of the sector to the Region’s economy

The manufacturing sector in the East of England 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 EoE Region, with only two other sectors (machinery and automobile manufacturing) having over half the turnover of the food and drink industry.

Key Dates in FoodEast's Development

Winter 1997 - Spring 1998	scoping study carried out for FoodFen
Summer 1998	scoping study report launch Andrew Charlton from the Regional Supply Network (East) appointed as FoodFen project manager Issue 1 of the FoodFen Flyer published First breakfast meeting held
Autumn 1998	private sector sponsors sign up as FoodFen founder members.
Spring 1999	FoodFen begins operating as a limited company Richard Turner is appointed as FoodFen Project Director
January 2001	GPCCTE/EEDA funding to kick start FoodFen's operations
March 2001	Website launched at www.foodfen.org.uk
April 2003	Innovations Applications funding to extend FoodFen's reach
April 2004	Launch of FoodEast across six counties of the east of England