Agriculture ‘the first link in food chain’

Glasgow: People who sought to write off agriculture as an industry of the past were challenged at a major dairy conference in Glasgow.

Joanne Denney-Finch of the Institute of Grocery Distribution (IGD) in Britain told delegates that agriculture is the first link in the food chain.

“Food is Britain’s biggest manufacturing industry - and that industry depends on local suppliers to remain competitive,” she said.

Ms Denney-Finch warned that if farming failed there was a real risk that the food chain would “unravel from the farmer downwards“.

She admitted that for dairy farmers and processors the food industry was not an easy environment, particularly because of recent price pressure. German discounters Lidl and Aldi were gaining market share in every Western European market, but this was not the only factor putting pressure on food prices.

“Profits are in decline for all but the most successful retailers, manufacturers, farmers and distribution companies,” she said.

Ms Denney-Finch stressed that the problems facing the food industry were not unique.

She also warned that the international supply chain was becoming more effective, stressing that this meant that even the British market for fresh dairy products was not safe from harsh competition, particularly from Eastern Europe.

Ms Denney-Finch said the only response to this competition was for the industry to move away from commodity products, use every available method to improve efficiency, and strip out all unnecessary costs from the supply chain.