British consumers favour local food

Although price remains a key factor in food purchasing decisions, an increasing proportion of consumers prefer to buy food that is locally produced and is traceable.

Those consumer preferences, and the wider food supply chain, were among the issues discussed at an event organised by final-year agricultural technology students at Queen’s University Belfast last week.

Among the speakers was Joe McDonald, Asda NI corporate affairs manager, who pointed out that the major British retailers are keen to supply, and support, local product whenever possible, but that price and quality remain the key factors driving purchasing decisions. “Produce that is local is at the top of consumers’ minds but they won’t pay over the odds for it,” said McDonald.

He also pointed to Defra research which shows that UK country-of-origin food was ranked highest for reputation among British consumers, with New Zealand second and the Republic of Ireland third. “I suspect after Brexit there will be an ever greater pro-British sentiment among consumers in the marketplace,” McDonald said.

That could benefit NI farmers, in the short term at least, but Brexit is also bringing a lot of uncertainty. “One certainty is that the UK will remain our main market,” maintained Dunbia’s head of agriculture Jonathan Birnie, also speaking at the event.

However, he acknowledged that the UK market would be challenging, particularly if the government continues to pursue a cheap food policy.

“Cheap food has been the policy for a long time. Will it change? For me it seems unlikely. There will be pressure on price from imports, so the market is likely to be volatile. Prices may go up but there won’t be stability in that,” he suggested.

He highlighted the importance of finding new markets post-Brexit allowing the meat industry to sell parts of the carcase not readily consumed on the home market.

NI land prices to drop after Brexit

With all indications coming from the UK government that direct payments will not be part of a UK agricultural policy after Brexit, AFBI director of economics, Professor John Davis, anticipates that land prices are set to fall back in NI.

“There will be implications for land prices in the longer term,” he said at last week’s event at Queen’s University.

Aside from direct payments, Davis said that a free trade deal with the EU after Brexit was pivotal for NI agriculture.

“If we have to get into a tariff situation with the EU then it is bad news for agri-food,” the AFBI economist said.

He also does not think that the EU withdrawal process would be completed in the two-year timeframe.

“There is no hope of that happening in my opinion. An extension is possible but it requires legislation which needs the support of all member states,” Davis said at the event.

Consumers and the supply chain

Most consumers do not realise the complexity of the food supply chain and want to know more about where their food comes from.

However, according to Queen’s University PhD student Stephanie Brooks, who has undertaken work in the beef supply chain, consumers don’t want to know too much.

“They want traceability information and to know it was farm quality assured. They don’t want to know it was a living, breathing animal,” Brooks told the audience at the event.