Yesterday the government pledged to stop importing its food and drink and to buy from UK producers. So will this benefit other businesses in the food and drink supply chain, such as manufacturers of food processing equipment?
The public sector currently spends £1.2bn a year on food and drink, of which over £600m is imported. The environment secretary announced a new purchasing standard which will encourage the public sector organisations such as schools and hospitals to buy local seasonal food. And by 2017 central government will use the standard to do the same.
This is part of the government’s economic strategy and the government claims it will generate £400m in new UK business. David Cameron said “By opening up these contracts, we can help them create more jobs [and] invest in their businesses…”. Hopefully this will have a knock on effect into the rest of the food and drink supply chain, such as manufacturers of metal processing equipment and component parts like Dymond Engineering.
There are 5,800 SME food and drink companies in the UK, and many more suppliers which like us are not sector specific. As a result of these measures the sector will be able to place more business with its UK supply chain generating business for other UK companies.