AIC Conference calls for joined-up, long-term agri-food policy

This month’s Agricultural Industries Confederation (AIC) conference in Peterborough – Managing New Global Norms in the Agri-Food Supply Chain – attracted over 220 delegates.

AIC chief executive Robert Sheasby outlined issues affecting the sector that the Confederation is liaising over with Defra. These include the EU Deforestation Regulation, where progress is going “backwards and forwards” and the Food Standards Agency’s proposed GB Feed Register, which should allow the marketing of more innovative animal feed products.

Turning to the government’s EU trade reset – possibly coming into effect from Q1 2027 – Mr Sheasby observed the process would require a great deal of work across the whole of government as well as a clear negotiating remit.

The SPS agreement is the immediate concern – the UK currently has four new plant protection products registered that are not approved in the EU. (Bayer Crop Science’s Mark Buckingham told the audience that 60% of the autumn herbicides used on UK autumn-sown crops this year are not EU-approved). Would the UK approvals be reversed under the reset? asked Mr Sheasby. A full impact analysis is needed to fully inform any such decisions.

Equally with the post-EU withdrawal Precision Breeding Act in England – but not the other devolved administrations – which has been widely welcomed by the plant breeding and seeds sectors. This legislation could also clash with an EU reset. At the same time, a reset could help reduce the SPS frictions apparent since the 2019 withdrawal which have caused so many challenges for the seed and plant trades.

On fertiliser, the Carbon Border Adjustment Mechanism (CBAM) is already affecting forward orders, although it not due to be implemented until January 2027, Mr Sheasby continued. But the AIC welcomed the opportunity to review the UK fertiliser regulations – the first such review for over 30 years. And the recent review of the UK farm assurance schemes was vital to keep consumer confidence in the food chain.

Looking ahead, Mr Sheasby called for a coherent, joined up policy to drive the agrifood sector forwards. Government is calling for economic growth, he concluded – but where is the ambition to achieve this? Agriculture currently contributes 0.6% of the UK’s Gross Domestic Product – why not target 1% to drive real growth? If government is serious about biodiversity, Net Zero and economic growth, it needs to encourage the agrisupply industry to invest. Improved productivity, helped by regulatory reform, would feed through to the wider farm and food chain.

AIC head of feed sector James McCulloch unveiled the AIC’s new Sustainable Commodities Scheme. This aims to cover all sustainable feed commodities, not just soya products, with the aim that feed manufacturers will not have to segregate EUDR and non-compliant feed materials. The scheme is expected to be officially launched next month.

Defra minister of state for food security and rural affairs Dame Angela Eagle used her presentation to herald her intention to simplify the current environmental support schemes and make them more accessible, within a drive towards more sustainable and high-quality British food. She expected the new farming roadmap, due for launch in 2026, to set a 25-year strategic direction. She acknowledged that the recent government reshuffle has delayed progress in revamping the SFI offer – ministers are aware of the difficulty caused.

Dame Angela said government wanted to work more closely with the industry to shape a unified, long-term strategy for food production. She acknowledged the industry’s anxiety over policy churn and the lack of a clear, coherent strategy, recognising the need for consistent, investable frameworks.

She stressed that government is listening and wants a plan that agri-food businesses can trust, with sector input critical to getting it right. Dame Angela concluded that government is committed to ensuring food security is at the heart of national strategy. The Scottish Government’s George Burgess and Welsh Secretary Huw Irranca-Davies both reinforced the need for cross-government coherence and long-term certainty for farmers.

Tim Smith, chairman of the £3 billion integrated pig and poultrymeat company Cranswick, a business planning to invest £100 million annually over the next few years, warned the UK’s regulatory burden and planning system is slowing further investment in UK food self-sufficiency to address consumer demand. Governemnt policies are not linked to action, he stated – there are plenty of reports but no actual progress.

Mr Smith called for a plan with measurable targets; shorter supply chains with fewer middlemen and agents; national support for sustainable food chains, but not ones that penalised scale; and encouragement for investment in food chains.

Political cycles are not well aligned with commercial investment in manufacturing and food – business needs a 10-15 year planning horizon while governments only have five years.

He called for a cross-government approach to stimulating agri-food sector growth, instead of the current inter department tensions. This would be helped by including Food and Drink within the remit of the government’s Industrial Strategy.

Dame Minette Batters advised that the next two years will be critical in turning the agriculture sector round.

Her Farm Profitability Review, commissioned by former Defra minister Steve Reed – is expected before ethe end of the year. Although she couldn’t reveal the content, she noted that 65% of UK farm output is currently unprofitable without BPS or SFI support. The key to profitability is farm scale and control of costs, she said.

Dame Minette called for a refresh of Defra and its arm’s length bodies to reduce red tape and promote a more can-do attitude – especially over planning for on farm energy and water storage projects. Greater transparency over Defra budgets would help the sector to track changes. She called on Defra to set agriculture sector targets based on domestic demand and export capacity, with 6-month tracking of progress.

There is room for environmental support through the SFI, but the schemes must be aligned to food production, encouraging more production of the protein crops and pulses that we currently import. More UK-grown food and feed ingredients will contribute to economic growth, she concluded.

Former minister George Freeman MP, promoting the 30:50:50 Innovation Agenda for UK Agriculture’s plan for a 30% increase in productivity on half of UK farms by the year 2050, stressed that global food output needs to double, while using less resource. This would need better links between the food industry, agriculture, and exports through trade investment.

Dr Elliott Grant, Visiting Fellow at the University of Cambridge, spoke on Artificial Intelligence (AI)’s potential to drive a third agricultural revolution, with as much change in the next decade as in the last 125 years. He advised the sector to understand, rather than fear the emerging technologies, and help shape the change rather than reacting to it, while also thinking about its unintended consequences.

Closing the conference, AIC chairman Jonathan Lane commented: “Our industry isn’t standing still – it’s innovating and adapting. We have the knowledge, the technology and the will. What we need now is stable, joined-up government policy to match that ambition.

“The future will be different, but it does not have to be negative. Working together, we can build a strong, sustainable and competitive agri-food system for the UK.”