- Food security and the prospects for farming
- Facing the market
- Developing your business
- Shortening the supply chain
- Environmental challenges

Food security and the prospects for farming

Until recently, the global market was over-supplied. Now there is recognition that world food production has to double in the near future to meet the demand from a rising world population and increasing affluence. There are also complex distribution issues because large numbers of people are under-nourished or obese.

Our farming industry produces 75% of the food we eat. It is constrained by climate and land availability but, over the years, agriculture has expanded production, driven by advances in technology. There are now fewer but larger farms that produce most of our output. Production has become highly concentrated.

The prospects for our farmers have improved and look positive for the foreseeable future. Input costs have risen but so have prices. Fortunes change for the cereals, animal and produce sectors but, importantly, consumer sentiment is behind our industry.
 

Facing the market

Since production subsidies were removed in 2005, farmers have had to follow the market.

The bulk of what is grown and reared goes to supply the everyday needs of retailers and food service. Agriculture is the first link in what are often long and complicated supply chains that deliver product to the final consumer.

We buy our food primarily from the multiple retailers. Food safety is taken for granted by consumers but more of us are choosing products where provenance is transparent.

Farmers are adapting to the opportunities that the market presents and success comes in many forms. Competitive advantage can be obtained if good information is used to inform production decisions and partnership working adopted with other farmers or supply chain partners.
 

Developing your businesses

All businesses start from understanding the market and defining what will set them apart from the competition, agriculture is no different.

Price is ever-important in all markets but it is not everything. Agriculture has reduced its costs and improved its efficiency, but the search for better ways of doing things is never ending. There are still large variations between the highest and lowest cost producers.

Some UK producers may compete on price alone, but the majority will find it advantageous to differentiate their production.

New varieties and new production methods could be the cornerstone of these developments that could also include adding value or improving service.

The most successful examples of modern farming are highly technical and need high calibre graduates with a business mind.
 

Shortening the supply chain

The food chain contributes around £140bn to the economy and provides 14% of employment. Agriculture is inextricably linked, but most farmers are too far removed from the final consumer.

For some farmers, supplying directly to consumers has helped them to increase sales. Others have prioritised supplying the retail market directly. More farmers are also finding benefits from supplying the food service market - both commercial and public outlets.

In a majority of cases production has to undergo further processing. Most processing and food manufacturing takes place off the farm but the operations are inter-dependent.

Farmers increasingly are looking beyond the farm gate and working with their customers to increase value and reduce waste.
 

Environmental challenges

Farming has created our landscape and land management practices shape the ecology of the countryside.

Sound resource management is critical to business success and is under strong scrutiny from society. The industry is under pressure to reduce its impact on our changing climate and manage its inputs like soil and water better.

In some cases farmers are finding new markets for their production and their waste.
 

Find out more with IGD factsheets

IGD factsheets are a relevant and reliable resource for your business.  Trust our experts to deliver accessible information and expert analysis for your industry.

Red Meat
Dairy
Cereals
Fresh Produce
Small Food Producers

 

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