1. Fresh Produce Consortium All Things Markets – operational and policy matters affecting wholesale markets

2. The Fresh Produce Consortium  UK trade association for the fresh produce industry  Recognised as the voice of the UK industry  Provides advice on regulatory and technical issues  Liaison and lobbying with wide range of stakeholders  Business development

3. Total market volume – fruit & veg Thousand tonnes Defra *2014 provisional data

4. UK Imports – fruit and vegetables Defra *2014 provisional data Thousand tonnes

5. UK Self-sufficiency – exploding myths Defra Pre-1750around 100% 1750-1830s90-100% (except poor harvests) 1870saround 60% 1914around 40% 1930s30-40% 1950s40-50% 1980s60-70% 2000s60% 2014 (provisional): 11% for fruit 58% for vegetables All fruit & veg = 34% 36% - apples 19% - tomatoes 101% - carrots

6. UK economy and food prices  Food prices have risen 18% in real terms since 2007  Prices for fruit and vegetables have fallen in past year  Around 12% of household income is spent on food  Fruit & vegetable consumption is falling  Main food issue of concern remains food prices UK national statistics

7. Key UK consumer concerns – food issues % of respondents FSA May surveys – prompted & spontaneous responses

8. Wholesale - opportunities beyond multiple retail  Wholesale and food services = 35% of market share  Fragmented & highly competitive sector  Resilient, buoyant & vibrant – despite anecdotal evidence of decline  Maintains market size and extensive presence

9. Food service trends  Food service is outpacing grocery in terms of growth  ‘Modest resurgence’ in independent retail versus fall in out of town superstores  18,000 independent greengrocers in 2015  Eating out is rising year on year  Londoners eat out more than any other region = 20% of national spend on eating out

10.  Regulatory burden – EU & UK legislation  Rising cost of raw materials and distribution  Exchange rates: £ v €  Fierce competition – discounting on High Street  Unpredictable weather conditions Key issues affecting wholesale

11. Distribution - delays at Calais & stowaways  FPC lobbying UK Government: Home Office, transport, food safety, insurance  Providing guidance and advice to FPC members  Raising public awareness of impact on fresh produce industry

12. Focus on Enforcement: review of charges under EC Regulation 669/2009  Comparison of differences in charging regimes  Assessment of additional costs to importers  Assessment of alternative service provision of inspection  Comparison of pesticide residue testing charges Report published March 2015 and available at BIS website: http://discuss.bis.gov.uk/focusonenforcement/business-focus-on- enforcement-2/business-focus-on-enforcement-fresh-produce-consortiums- review/

13. Focus on Enforcement: key findings  Inconsistencies in charges by Port Health Authorities  Delays in testing and clearance impose substantial costs on industry  No assessment of alternative provider of inspections  No recognition of Assurance Schemes and record of reputable traders in levels of checks  Ministers require FSA to commit to investigate

14. EU action on plant health exceedances  Greater EU scrutiny & action on persistently high levels of exceedances  FPC facilitated Defra briefings for UK representatives of key exporting countries  8 countries received warnings in 2014  EU ban on Indian mango lifted but still under scrutiny

15. Food safety and integrity  Spotlight on food integrity since UK ‘horsemeat’ scandal  Traceability as risk management tool as well as legislative requirement  FPC Produce Integrity Database www.freshproducedatabase.org

16. Modern Slavery Act and your business  Affects organisations trading in the UK with annual turnover of £36m+ and their suppliers  Need to make public annual statement  Evidence of measures taken to ensure slavery & human trafficking is not taking place in your business & your supply chain  FPC developing guidance for members

17. Keep in contact with FPC Nigel Jenney nigel@freshproduce.org.uk Tel: 01733 237117 www.fpc.freshtalkdaily.co.uk www.freshproduce.org.uk