Scottish Government

SECTION 4 - FOUR THEMES OF FOOD AND DRINK POLICY: PLENARY DISCUSSION

4.1 Economic growth

Production

Currently, the red meat industry is contracting, although there is a perceived need for expansion in the future (particularly in terms of developing economies increasing their consumption of protein). It is important to stop a major decline in the industry in the short term, to support anticipated demand in the longer term, otherwise the critical mass may not be there when greater opportunities come along.

Tensions include physical and legislative constraints. For example, expansion in production of one commodity implies reduction in another, unless yields can be significantly increased (due to improved technology). Being part of the EU means that Scotland is constrained by EU legislation, and agriculture is greatly impacted by the Common Agricultural Policy ( CAP).

Given the interdependencies in the meat supply chains between Scotland and the rest of the UK, a move away from a UK-wide production system would have catastrophic effects. Disease outbreaks (such as Foot and Mouth and Bluetongue) show the extent to which food production supply chains cross borders within the UK and internationally. Scotland is dependent on high cross flows of both beef and cattle between the UK and Ireland and lamb meat between the UK and New Zealand, as well as cross flows within the UK.

There may be some tensions relating to red meat from the health perspective, since red meat consumption has been linked to certain types of cancer (colorectal cancer, for example). However, it is not clear if the level of risk is present if red meat is eaten as part of a balanced diet, and there is no evidence that this is a particular issue for locally produced meat. In addition, it is not clear if the effect of red meat consumption is different when levels of processing are considered. If there is variation, the market for unprocessed red meat could be expanded, if it could be substituted for highly processed products, such as that used in ready meals.

Environmental concerns could pose a further barrier to expanding the production of red meat. Evidence is needed to give further insight into how different breeds of animals and different feeding systems (for example, grass versus grain) impact on greenhouse gas emissions.

A more accurate, consistent system of labelling could assist the promotion of products. The recently published Scottish Environmental Attitudes and Behaviours Survey 2008 ⁶ found that, when asked about their awareness of sustainably produced goods, almost all respondents had heard of both Scotch Beef and Scotch Lamb, and the majority made a conscious effort to buy these quality assured products. However, recent research (Polley and Lawton, 2008 - see below) indicated that consumers are confused about the distinction between 'Scotch' and 'Scottish' in terms of labelling. Currently, overseas produce may be labelled 'Scottish' if it is processed in Scotland (for example, Danish pork processed into sausages in Scotland). Furthermore, in relation to EU regulations in this area, there is potential for further confusion as 'country of origin' labelling is at the level of the member state ( UK) rather than the country of Scotland.

Scotland's meat is regarded as being of very high quality and, as such, already has a strong selling point. However, the lamb industry is disappearing in mountain regions, possibly as a result of the changes to the CAP which decoupled the payments from production volume (details in Farming's Retreat from the Hills, SAC, 2008 ⁷).

It is financially unprofitable to retain sheep in hill areas. To expand the production of high quality meat, investment in the industry is necessary. However, lamb is not currently a large part of the Scottish diet. It was suggested in discussion that attempts to change people's patterns of consumption might conflict with the health agenda, as lamb meat is high in fat. However, it was also pointed out that lamb butchered using modern techniques is around 10% fat (Higgs, J, 2000).

Promotion of mutton as a premium meat could possibly help the sheep sector. At present, mutton tends to go for kebabs, curries and the Asian fresh meat market. If mutton could achieve a higher price, this would help primary producers.

Another possible option would be to look at export markets. Scotland currently supplies a large percentage of its lamb to Wales, where lamb meat is culturally more important. However, increasing the dependency of Scotland on the Welsh industry is not seen as a major opportunity, or as a good way to increase recognition of the Scotch Lamb brand.

There is a further economic cost to the current contraction in beef and lamb production in Scotland. Scotland's landscape and farm animal varieties are important visitor attractions and their disappearance may have a negative impact on Scotland's image as a tourist destination.

The current state of Scotland's fish industry is complex and dynamic, with some tensions between the wild and aquaculture sectors, notably over shared production sites. Elsewhere along the chain, captured and farmed supplies may co-exist, within processing units, for example. Exports are already high and opportunities for expanding them are limited. Competition is intense in the shellfish market, whilst there is not much scope to increase the production volume of salmon. Markets overseas generally pay more for Scottish fish than domestic UK markets, as they perceive Scottish fish to be an attractive premium product for which consumers are willing to pay

While the wild sector is generally static, with some stocks dwindling and some signs of slow recovery in others, there is opportunity for slow, managed growth in the aquaculture sector. Fish farming is a young industry. Food scare memories are difficult to shake (although limited in the case of fish) and the 'naturalness' of the farmed product is still questioned by some. Boosting consumer confidence is important if production and the market are to increase. In relation to salmon, opportunities exist in maintaining niche markets for the quality product. Any expansion of the shellfish market should be approached with caution in order to maintain control of the safety of the product. In relation to the future development of the industry, it may be wise to focus on increasing the desirability of the product, and hence its unit value, rather than increasing production.

Adaptability is key - another possibility to consider would be the scope for small scale development, for example to address specific dietary issues of ethnic minority communities, and using recycling technology (for example, use of surplus warm water to grow species such as tilapia).

Expansion of the Scottish aquaculture industry could, potentially, support the health policy objective to increase consumption of fish. However, although the health properties of domestic salmon may be perceived to be of superior quality (because fresher than that available from elsewhere) imported frozen salmon would meet the policy objective and, because it is cheaper, would be more affordable for people on low incomes.

Analysis of market failure and the rationale for Government intervention must be identified. For example, poor health is Scotland's externality, so Government spending to improve people's diets may be justifiable. This could take the form of promoting fish as a healthy product. There could be scope in improving technology to alter the product to appeal more to the consumer; for example, removing bones, or presentational improvements to appeal to children, such as healthy salmon fish fingers. More research on consumer attitudes is needed.

There is potential for expanding production for export in the whisky market (and the industry feels there is a demand for growth). However, it is important to distinguish which type of product (premium or value) would best meet demand overseas. Recent figures indicate expansion in the whisky industry, but data are not recent enough to show the effect on the industry of the economic downturn. Changes in land use to support anticipated demand will take a long time to effect, unless the yield of wheat and barley crops can be increased.

The majority of crops are used as inputs to production (whisky, beef fodder). It was suggested that oat is the only type of crop for which an export market opportunity could be exploited. Recent work by researchers at the Institute of Grassland and Environmental Research (Aberystwyth) and the Centre for Environmental Strategy (University of Surrey) involved a 'plough to plate' life cycle assessment of the porridge oat production chain and found that plant trait development can have a significant effect on the whole oat production chain. Improved sustainability in crop production would benefit from an integrated effort stretching from the geneticist to the consumer (McDevitt, J and Mila I Canals, L, 2008).

The geographical area of the market is the Middle East and the niche is premium so, if Scotland is to take advantage of the opportunity, the emphasis should be on premium packaging and presentation of the product. However, there is a danger that the market has already been captured by other oat-exporting countries.

In terms of vegetable growing, Scotland is constrained in the availability of suitable land. Profligate water consumption is also an issue. Growing vegetables in polytunnels could be explored further, although polytunnels do not yet normally use rainwater harvesting as the norm, so depend on other sources as much as irrigated field crops or those in heated houses. Polytunnels use heat better than heated houses, in that they are not usually heated, but they cannot extend the growing season as much as a heated glass house.

Processing

Producers in the salmon industry do not sell straight to retailers: they pass to processors who produce what retailers will buy. Processing is commonly centralised, rather than truly local. Improved roads and related infrastructure would be needed in remote areas in order to boost local processing.

In relation to meat, in general, there is little need to increase slaughtering capacity at present, because there is an adequate number of abattoirs in Scotland to cope with the demands of an industry that is shrinking. However, additional slaughtering capacity in remote areas could be of benefit, provided the necessary improvements to the infrastructure were made and economic viability could be demonstrated. There is just one major pig slaughtering facility, and thus high dependence of the supply chain operation on the viability of one company.

There could be scope for expanding secondary processingfor meat, where this can be done with benefit to health. Technology can be developed to assist this, for example, using butchery techniques to develop new products (there are US product development examples in this area). It would be important to take care that cheap red meat imports were not used. Some processing facilities are owned by overseas companies, which may mean that there is a lack of incentive to invest further in Scotland. Cost-benefit analysis would allow insight into the viability of processing plants in Scotland.

There are also requirement for technology, innovation, skills and labour inputs into processing. Currently there are few food technology courses in Scotland and skills have been lost. The need is for courses that are practical and include both technical and economic components; and there is a need for a food science centre with pilot plant, test kitchens, development chefs etc.

In relation to the future labour supply for the processing industry, at present the farming industry is heavily reliant on labour provided by the new EU accession states. There is a danger of that labour force diminishing if the immigration flow is reversed.

Boosting local economies

There are opportunities for tourism-oriented policies to link into the wider food and drink policy with the objective of maximising spending on Scottish produce by visitors to Scotland, both while they are visiting, and when they return home. This is work that could be taken forward by Scottish Enterprise.

Currently public procurement of food fails to consider opportunities for sourcing local produce. There is growing evidence from the south of England on how local producers can supply public establishments. The benefits of local initiatives could be small in terms of numbers, but the knock-on effects could be considerable.

Small, positive steps could focus on a range of sizes of venture - for example, not just restaurants but sandwich outlets and take away facilities. It is important to ensure that the focus is broad and takes account of inequalities issues. The intention should be to reconnect people with the food they eat and how and where it is produced and processed. However, much depends on the diversity of local produce and there are issues of seasonality to consider.

Participants noted a recent publication: 'The School Food Revolution: Public Food and the Challenge of Sustainable Development' (Morgan and Sonnino, 2008) ⁹ This book takes a critical look at the alleged benefits of school food reform, such as lower food miles, the creation of markets for local producers and new food education initiatives that empower consumers by nurturing their capacity to eat healthily. The book compares a variety of sites involved in the school food revolution, from rural communities committed to the value of 'the local' to global cities such as London, New York and Rome that feed millions of ethnically diverse young people daily. It was noted that some of the chapters are reportage.

Also mentioned during the discussion was the 'Eat Well Do Well' initiative, which was launched by Kingston upon Hull in 2004 and evaluated by researchers from the University of Hull over a three year period (Colquhoun, Wright, Pike and Gatenby, 2008). However, it is not clear whether the initiative specifically focused on provision of local food.

4.2 Sustainability

Impact on the environment - local versus imported

It is important to establish which breeds of animal are the most efficient metabolically: i.e. which breeds would allow us to increase production of meat (or other livestock products) with minimum increases in greenhouse gases. These considerations have to be levelled with the benefits of different feeds, and the nutrient quality of Scottish soil.

Increased production would have implications for the environment in Scotland, for example in relation to increased transportation of livestock and produce.

Food produce is seasonal by nature, and Scotland cannot ever be entirely self-sufficient. In terms of environmental impact, local production and consumption are not necessarily better than imported produce. The impacts of food transport are complex, and involve many trade-offs between different factors. It has been recognised that a single indicator based on total food miles travelled is not a valid measure of sustainability. The Validity of Food Miles as an Indicator of Sustainable Development, published by Defra in 2005 ¹⁰, established that transport mode, transport efficiency, differences in food production systems and wider economic and social benefits should all be taken into account when designing an indicator to measure the impacts of food transport, and when formulating associated policies. It was reported that Defra have work pending, as well as a wide range of evidence on food miles and sustainability. Participants agreed that there is a need to raise consumer awareness of how food systems work: that greater distance travelled does not necessarily equate to greater environmental damage.

Local food is also typified by simpler packaging, which can often mean less sophisticated and efficient packaging. Packaging is often seen as an unnecessary evil, but it actually performs a useful environmental function - it extends shelf-life and can reduce food waste. Levy (2000), after Alter (1988), used panel data to compare the proportions of plastic, glass and metal packaging materials in the waste stream of a range of different countries at different points in time against the proportion of food waste in the waste stream. The data demonstrate a strong inverse relationship, suggesting that as packaging is increased (and thus more packaging waste is generated), less food waste is generated. So, if we are to consider a greater proportion of local food supply, one has to compare the environmental impact of the potential reduction in packaging versus the environmental impact of the potential gain in food waste.

When food enters the waste stream it may be composted (which seems environmentally responsible) or it may be land-filled. In either case, however, the food decays and produces further emissions, principally of methane, which is around 23 times more damaging in terms of global warming potential than carbon dioxide (Defra, 2008). When packaging waste enters the waste stream, it may also be land-filled or incinerated, but after this point it makes few further emissions. We thus know that food waste, per kilo, is more harmful in terms of greenhouse gas emissions than packaging waste. As a consequence, increasing packaging, not decreasing it, may be a more environmentally responsible action to take and, as such, localising food supply and simplifying packaging could be environmentally damaging.

Research published recently has indicated the scale of the problem of food waste. The study, which was undertaken by WRAP (Waste & Resources Action Programme) ¹¹ involved a detailed survey of households and a physical analysis of their rubbish. It found that, in the UK, we throw away around one third of the food we buy, leading to a significant impact on the environment. WRAP claimed that stopping the waste of good food could avoid 18 million tonnes of carbon dioxide being emitted each year, the equivalent of taking one in five cars off the road. In relation to the nature of avoidable food waste, the research found that 61% of the food thrown away could have been eaten and at least one tenth was still in date at the time it was thrown away. This highlights the complexity of the problem and appears to suggest the primacy of the behaviours of consumers in relation to food, rather than issues around packaging and shelf life. The implications of this for local food production have yet to be investigated.

From an ethical perspective, there is the need to maintain food production in the developing world, and to ensure that the environmental impact of producing food is closely monitored. Labelling cannot capture all the considerations that consumers might/should need to know when purchasing a food item (for example, carbon labelling excludes water use). It was noted that Professor Tim Lang, an advisor to the UK Government on food policy, told attendees at the British Association Festival of Science in Liverpool in September 20008 that the glut of labels developed in recent years was only serving to confuse customers. He proposed the formation of a new government-backed panel to develop 'omni-standards' capable of integrating data on a range of issues (carbon footprints, packaging levels, nutrition, fair-trade, water use, animal welfare and impact on diversity). He suggested that the data could then be communicated using 'food flower' labels, where each petal represented a product's performance in a different area ¹²

In the meantime, however, it can be argued that even imperfect measures of the environmental impact of food production is better than the absence of measures. It was suggested that the development of a sustainability index would be helpful; and branding to build in required characteristics. It was noted that a multidisciplinary team at the University of Stirling, with 16 partners in 13 countries, is co-ordinating an EUFP7 project ( SEAT) looking at sustainable ethical aquaculture trade. The focus will be upon the supply chains for four farmed species in SEA Asia marketed in the EU. The aim is to explore the potential value of an Ethical Aquaculture Food Index, through an LCA approach. A critical component of this research will be to identify the realities of incorporating relevant information from along the chain and end-users' perceptions of this.

Systems need to be consistent and as simple as possible. Consideration also needs to be given to how systems are presented to the public. It is important to communicate effectively with people who influence the media (celebrity chefs, for example).

Several recent studies which have focused on food labelling and food behaviours were flagged up by participants:

• PERIscope has been tracking consumer views on food related issues and reporting their behaviours since 2001 (Ireland, Britain and Northern Ireland have been included in the study since the outset; five continental European countries have been participating since 2006. The most recent report from the study (in 2008) is Continental consumers and their foods¹³. The study found that continental consumers have yet to embrace environmental and ethical terminology
• Work by the National Heart Forum in 2007 assessed the use of Guideline Daily Amounts ( GDAs) on food and drink packages as a means of conveying nutritional information. It found several areas of concern. The use of percentage GDA signals on front-of-pack labelling has been promoted by some sections of the food industry as an alternative to a 'traffic-light' signposting system recommended by the Food Standards Agency. The report concluded that GDA signals are not the optimum method for helping consumers make quick, informed choices. Misconceptions and Misinformation: the Problems with Guideline Daily Amounts¹⁴ A Which? Report in July 2006 ( Healthy Signs?) found that the Food Standards Agency 'traffic-light' labelling scheme performed well, particularly with people in lower socio-economic groups and those who would not normally use food labels, as it was easy to understand and quick to use.

Specific issues re environmental impact:

• Beef cattle - Scotland may be able to take the environmental hit, in return for economic advantage. However, it is not clear how climate change will affect Scotland in the longer term (much depends on maintaining the Gulf Stream).
• Nephrops caught in pots is a more selective method of capture and thus takes larger specimens which can be sold (possibly alive) as a premium product, with minimal damage to the environment, especially compared to other modes of capture
• 'Closed circle' production - for example chicken litter used as a fertiliser to grow crops; crops used to feed chicken. Environmental and economic costs are offset, but it is important to understand potential risks.
• Monitor Farms Programme in Scotland - Monitor Farms are normal commercial farms, representative of enterprises and conditions in their local area, where the farmer is prepared to allow other farmers access to the farm - and to the decision-making process. The other farmers can then assess changes made on the Monitor Farm and are encouraged to adopt the successful ideas themselves, looking to improve profitability of business. The scheme has been operating in Scotland since 2003. It might be possible to set up a 'monitor chain' to look at profitability in terms of sustainability issues.

Economic sustainability

The ageing profile of the farming sector may be a barrier to the industry's future, if labour and skills are lost and farmers leaving the industry are not replaced by new entrants. Currently there is a lack of initiatives that could bring people into farming.

Participants mentioned the National Care Farming Initiative ¹⁵, which aims to promote mental and physical health through giving people the opportunity to spend time working on the land. Care farming does not just involve traditional farming - participants also work in forestry, horticulture and other land management activities. It is always a partnership between the farmer or other land manager, the relevant health care, social care or education provider and the participant. Care farming combines care of the land with care of people and there is a growing body of evidence to suggest that it can deliver great personal, social and economic benefits for everyone involved. It can boost the rural economy by helping farms to stay economically viable, and research (for example Hine and Pretty, 2008) demonstrates positive outcomes for those who participate, including enhanced mood and self-esteem. Care Farming Scotland is a new initiative that promotes and supports the development of care farming in Scotland.

Consumer attitudes to the environmental impact of local versus imported foods

It was suggested that Scots have a sense of pride in Scottish beef that is not as well developed for lamb, pork or fish. Therefore, it is important to focus on changing attitudes to and behaviours concerning Scottish produce. Working with the media, to address issues of misinformation and to encourage positive stories about local food, would be useful. Ensuring that children are taught about the food they eat as early as possible encourages them to make informed choices. There are several examples of schemes; for example work by the British Potato Council ¹⁶, the Royal Highland Educational Trust and the Royal Northern Countryside Initiative, where school children grow potatoes, learn to weigh them (basic arithmetic) and then cook them (Press and Journal, February 7 ^th 2009, Joe Watson). Scotland's Curriculum for Excellence, with its emphasis on providing opportunities to draw together different strands of learning, and focus on relevance and practical applications of skills should facilitate this approach.

4.3 Health

Is local food healthier than imported? Participants agreed this depends on the circumstances, although evidence exists that a shorter supply chain tends to be of better quality. However, a range of factors need to be considered. For example:

• Local fish can be healthier, but the chain is complex and fish may travel from Scotland to Grimsby for processing and come back to Scotland to be sold
• Local food is typified by simpler and less sophisticated packaging, which can be lead to a shorter shelf-life and deterioration in the quality of the product, even where the food chain is short
• The soil profile varies around Scotland - and lacks nutrients in some areas
• Local food cannot necessarily guarantee all year supply, especially fruit and vegetables

Consequently, local food should not be seen as necessarily being synonymous with healthier food.

The long running Berry Scotland Programme at the University of Dundee aims to increase consumption of Scottish berries for the benefits of population health and the Scottish Berry Industry. The Scottish Crop Research Institute ( SCRI) has a plant products and food quality programme that includes increasing vitamin C yield in blackcurrants.

Increasing food production might have unintended adverse health effects, for example, the risks of certain types of cancer associated with the consumption of red meat. However, it is not yet clear whether the risk is increased if red meat is consumed as part of a healthy diet. In addition, there is little evidence that compares the health effects of local and non-locally produced food and, because the quality aspects of local food could be different from imported, there is a need for research to explore this area.

It was noted that 'health' should be considered as a broader concept than human nutrition. The health status of animals, the soil, and local communities should also be factored into any decision making process in relation to the food industry.

There is some evidence to suggest that, in Scotland, health is not very strongly linked to the choices made by consumers. Recent research into food prices showed that, while food price inflation has hit the poorest hardest, this has not reduced their consumption of alcohol and tobacco. Decreasing alcohol consumption is particularly relevant to Scotland's health agenda. Wine and spirits are at the top of the shopping basket list. This is not the case for England, despite the fact that the demographic profiles of Scotland and England are very similar ( TNS data, from a presentation given at the Cross Party Group on Food, 12 November 2008, Scottish Parliament).

Human health can benefit from producing ruminant meats from grass rather than grain, but this may not be optimal from a climate change perspective. There is a need to identify optimal production systems and livestock genetics that would meet the needs of both human health and environmental and climate protection.

The consequences of a shrinking livestock industry on national and local economies, supply chains and rural viability are unknown and need to be quantified.

4.4 Affordability and Access

A shift towards more local production and consumption should not have to disadvantage people who are economically deprived. Direct marketing through the internet is growing in Scotland, farmers' markets and box schemes are becoming more popular. All of these have a favourable impact on the accessibility of local food, but produce is often at the top end of the price range.

Scotland Food and Drink are now moving their emphasis from premium to increased production in an attempt to capture a share of the global food and drink market. In order to meet their financial target of growing the sales of the industry, it is unclear who the key players are - several large manufacturers or a number of small and medium enterprises ( SMEs). SMEs in Scotland's food and drink industry are often small, often with only a few employees, and are based in rural areas. To help to strengthen rural communities, there is potential to get individual SMEs to use knowledge that is available from large organisations such as SAC.

There is a need to look at the impact of food price increases on food inequalities. A shift towards more local production and consumption should not disadvantage people who are economically deprived; for example, there is an opportunity to promote 'Grow your own' initiatives more widely. There is also a need to be more holistic in the approach to inequality and seeing food as part of community wellbeing. There is a need to engage families in thinking of cheaper and healthier ways of cooking. It would be useful to have a better focus on addressing food behaviours in schools, because children are more amenable than adults and may carry messages home to the rest of their families.