British food loses export crutch

Food From Britain was formed in 1983 as the government-commissioned market development consultancy to increase exports of food and drink from the UK, and to support the growth of quality regional food producers.

It provides companies with market entry, trade development and marketing services.

In 2007/8 Defra provided funding of £4.7m to FFB, but the government department recently told the organisation that this would be reduced to £4m for 2008/9 - and funding would be phased out altogether by 2010/11.

As a result, the organisation has decided to wind down as of March 31 2009, thus removing government assistance to food companies looking to create a market for product overseas.

FFB chair Lady Sylvia Jay said that since the business model is based on public sector funding rather than a commercial model, "the prospect of zero Defra funding by the financial year 2010/11, together with cuts and uncertainties surrounding other possible sources of public funding… made it impossible for us… to continue to offer our clients the current type and level of FFB services after March 2009".

In its latest annual report, FFB said that food and drink exports from Britain were £10.5bn in 2006/7 - the first time exports from the sector have exceeded £10bn since 1996.

Industry reaction The funding withdrawal and its dire consequences have been met with dismay from food manufacturers.

Barry Tilley, managing director of The Original Candy Company, told FoodNavigator.com that he is "saddened and angered" by Defra's decision.

He said that the government is being short-sighted in its priorities, and that the decision is counterproductive since it will, ultimately, lose out on exports.

Although FFB works with some of the main food boards, it is ultimately small businessmen, who want to go into export but do not know where to start, who will suffer.

"My concern is that new small businesses who want to export will have no-one to turn to," he said.

Tilley has worked with FFB for several years, and one of the ways the organisation helped his business was through exhibitions and market research that opened up the French market to his ChoccaMocca chocolate brand.

In addition, Tilley has just returned from the GulFood trade show in Dubai, where around 40 companies were gathered under the FFB umbrella.

"How many of us would have gone down to try to capture part of this market without FFB?" he asked.

Defra's rationale A spokesperson from Defra was not available to comment on the rationale behind the withdrawal of funding from FFB prior to publication of this article.

But an article in The Daily Telegraph reported Defra's explanation as being that food and drink exports are not a priority area for Defra, and that the money could be better used elsewhere.

"[Ministers] have also decided that Defra should no longer provide subsidised advice for individual businesses and this has been another factor in the decision," a spokesperson was quoted as saying.

A new model for FFB?

However there is a small glimmer of hope in the decision.

The organisation will cease to exist "in its current form ", and some of its services may continues "through a different model".

A spokesperson for FFB told FoodNavigator.com that conversations about the future options are taking place over the next few weeks.

In the meantime, the nine international offices (in Belgium, France, Germany, Italy, The Netherlands, the Nordic countries, Spain, Portugal and North America) have already stated their intention to continue.

The international offices have functioned as private bodies since 1991.

Indeed, the FFB has offered food manufacturers fast track membership with services for which they pay, such as attendance at trade shows, which can result in them working with its international offices on a commercial consultancy basis.

In the meantime, FFB has reassured the industry that the £4m that Defra has pledged for the coming year will allow it to go ahead with its full programme of research, events and exhibitions.