UK food and drinks industry investment plans subdued, study claims.

According to a report by The Food and Drink Federation (FDF), half of UK food and drink businesses are planning to maintain low levels of investment in the coming year. The FDF is calling for increased collaboration with the government to stimulate private sector investment, which it believes is crucial for long-term food security and growth. The report highlights that investment in the food and drink manufacturing sector has fallen by 30% since 2019, in contrast to a 5% growth in the rest of the manufacturing industry. The FDF attributes this decline to various factors, including Brexit, the pandemic, geopolitical unrest, extreme weather conditions, and inflationary pressures. The report also emphasizes the challenges posed by regulatory burdens and labor shortages. The FDF suggests that strengthening collaboration with government, universities, and research institutions, as well as investing in science and innovation, will enhance the resilience of the food supply chain. The report also raises concerns about the costs associated with the Extended Producer Responsibility scheme and the 'Not for EU' labeling policy. The FDF estimates that implementing the labeling policy could cost the industry £150m and result in ongoing costs of £250m per year. The report identifies growth and innovation as top priorities for the sector, with 84% of businesses aiming to increase UK sales and 53% focusing on new product development. The FDF urges the government to create a favorable climate for capital expenditure and innovation to support a sustainable and resilient food supply chain. [Extracted from the article]