KE STRATEGII ZEMĚDĚLSKO-POTRAVINÁŘSKÉHO SEKTORU NA JIHOZÁPADĚ ANGLIE

24.09.1999 | Odborné konference

Towards a strategy for the agrifood sector in the South West of England

Ke strategii zemědělsko-potravinářského sektoru na jihozápadě Anglie

M.F Warrena and A.J. Erringtonb

Adresa autora:

a Head of Land Use and Rural Management Department and b Professor of Rural Development

Seale-Hayne Faculty, University of Plymouth

Newton Abbot TQ12 6NQ, United Kingdom

Tel: +44 (0)1626 325673 Fax: +44 (0)1626 325657 Email: mwarren@plymouth.ac.uk

Summary:

In recent years, local government has become increasingly concerned about the future of agriculture and rural business: the establishment in 1999 of a Regional Development Agency by the UK Government has added to the pressure to develop a regional economic strategy. This paper describes the main characteristics of the agrifood sector in physical and economic terms, and then draws on five related research projects conducted by the University of Plymouth in order to identify crucial issues to be addressed by any strategy. Questions are raised about the process of policy formation and implementation. Though specific to this particular area, the conclusions have parallels in many other rural regions in the larger Europe.

Anotace:

Místní samospráva se v poslední době stále více zajímá o budoucnost zemědělství a agrobyznysu: britská vláda ustavila v roce 1999 Agenturu pro rozvoj regionů, která začala více tlačit na vypracování ekonomické strategie pro rozvoj regionů.

Tento příspěvek podává hlavní rysy zemědělsko-potravinářského sektoru, a čerpá z pěti relevantních výzkumných projektů na University of Plymouth s cílem stanovit hlavní témata, kterými se musí zabývat jakákoli strategie. Předmětem zkoumání je proces vytváření odpovídající politiky a jejího uplatňování. Třebaže jde o specifikum této konkrétní oblasti, závěry práce mají své paralely v mnoha jiných venkovských oblastech kdekoli v Evropě.

Key words:

Regional strategy, agriculture, food, rural development

Klíčová slova:

regionální strategie, zemědělství, potraviny, rozvoj venkova.

Introduction

This paper concerns the gradual evolution of a strategy for the agrifood sector in the seven counties of the South West of England (see Figure 1). Most forms of temperate agricultural production can be found in the South West, although dairying, beef and sheep production are the most important (Table 1). Average holding size is 51ha compared to a national average of 64ha. The dominance of ruminant livestock production declines eastwards in favour of arable production, and farm size increases. Although not the largest industrial sector in the South West, and declining in importance, the agrifood industry makes significant contributions towards employment and income of the region, especially when the indirect effects on associated industries are taken into account. The rural nature of the South West is also an important factor in the tourist industry.

Aggregate gross product of the agriculture and food manufacturing sectors in the South West in 1996 was the highest of any English region at over Ł2.5 billion, representing approximately 5% of regional GDP. Employment within the sector was over 116,000, over 6% of all employees in employment and self-employed within the region. Taking agriculture alone, the labour force in the South West was over 83,000 in 1997, approximately 21% of the agricultural labour force in England. Half of these were employees (one third in Cornwall and Devon), the remainder being farmers, partners, directors and their spouses. Only 26% of employees were regular full-time workers (21% in Cornwall and Devon): this figure, together with that for seasonal and casual workers, continues a consistent downward trend over several decades, with partial compensation by an increase in regular part-time employees (Table 2) and a steady increase in part-time farmers at the expense of full-time numbers. It is likely that the high level of family employment conceals significant under-employment and disguised unemployment. Only 1% of the total labour force are salaried managers. A recent survey of 2,000 farmers conducted in Cornwall, Devon, Somerset and Dorset, (Prosper 1998) identified that more than half of the principals of farming businesses were aged over 50 years: approximately 66% had no formal industry-related qualifications and few had business qualifications at any level.

Primary agricultural production has suffered considerable economic difficulties in the last two years, with low prices arising from, amongst other things, the BSE crisis and the strength of sterling. Within all sectors of agriculture, farm incomes have fallen drastically in the last three years in real terms. (Table 3).

In search of a strategy

The South West Government Office region comprises seven counties and four urban unitary authorities (see Figure 1). Counties are controlled by elected councils: they are further subdivided into districts, again controlled by elected bodies. Although there are more local councils at town and parish level, economic development functions are primarily located in county and district councils. Until recently, there has been little interest in intervention by local or regional government in the agricultural industry, this being regarded as primarily a function of national and European government. Various factors have begun to change that stance. The rural population, less and less directly involved in agriculture and more and more urbanised in its tastes, has developed new expectations (for instance with respect to use of rural land for recreation, freedom from smell, noise and pollution, housing and employment opportunities), which an elected council cannot afford to ignore.

Secondly, new organisations have been formed. In some counties, reorganisation of local government has given large urban centres the status of unitary authorities, removing them from the governance of the county. As a result, a county council such as Devon now presides over a much more rural population, and has found new incentive to engage in issues relating to agriculture and rural business. The most significant new institution, the South West of England Regional Development Agency (SWERDA) created in 1999 as part of national policy, has not yet had time to make a direct impact, but the very fact of its existence has stimulated considerable activity. In particular, rural counties and districts, anticipating significant bias towards the urban, and more prosperous Eastern sector of the region, have begun to lobby hard for the needs of rural areas, and have formed alliances with non-governmental organisations (NGO) to influence the strategy of SWERDA accordingly.

Thirdly, new opportunities have concentrated minds on rural areas, especially the availability of Objective 5b Structural Funds and LEADER projects in the Western part of the region (and the possibility of Objective 1 and Objective 2 funding in the latest round). Local authorities and NGOs worked together to justify the application of Structural Funds to their areas: they then found that in order for the funds to be spent, they had to commit themselves to major involvement in planning and implementing projects, usually in rural areas. This was partly because the bureaucracy involved in the schemes (especially as implemented by the UK government) would otherwise have deterred all but the most determined private sector individuals, and partly because without the matching funding provided by local authorities, many projects would never have been approved.

Perhaps the most significant factor has been the emergence of new pressures, particularly in the agricultural and food industries. The sheer speed and depth of the depression in agricultural product prices have created profound shocks to the local economy. Local authorities have realised that changes in the Common Agricultural Policy have taken away many of the safety nets that previously operated at national/European level, that the decline in the industry is likely to be long-term, and that a managed transfer of resources into other rural industrial sectors - in other words a planned approach to rural economic development - has many attractions over a laisser-faire, the market will provide approach, particularly given the many public goods the countryside supplies.

The University of Plymouth studies

It is against this background that the studies reported here were commissioned. They comprise:

1. The future of Cornish agriculture, and the rôle of Cornwall County Council (Warren, Errington and Shepherd 1998). Commissioned by Cornwall County Council.

2. Agricultural Development and the Operation of EAGGF Structural Funds in South West England (Warren, Turner, Errington and McInerney, 1999) Joint project with University of Exeter. Commissioned by a consortium of local government and NGO bodies, coordinated by Devon County Council, with main funding from MAFF.

3. Agriculture in the South West Report for the Sustainable Round Table of the South West of England Regional Development Agency. (Errington, Warren and Murray 1999).

4. Strategic issues in the Food and Drink Sector of the South West of England Warren, Shepherd and Murray 1999). Commissioned by a consortium of local government and NGO bodies, led by the Government Office for the South West.

5. Agricultural Development in the South Hams (Warren, Errington and Murray 1999). Commissioned by South Hams District Council (Devon).

In every case the choice of methodology was constrained by the timescale (measured in weeks rather than months). Each project used a mixture of data collection techniques (see Table 4), both quantitative and qualitative, including synthesis of previous regional project results (many of which were one-off commissions conducted by a variety of consultants, and never before related to each other); analysis of data from secondary sources such as Ministry of Agriculture, Fisheries and Food (MAFF); in-depth interviews with key informants in the study area/sector; Delphi surveys seeking consensus views of future events and potential developments; focus groups; and conventional postal survey (See Table 4).

This is not the sum total of all the work on regional agricultural issues, of course. The report from (2) above listed around 40 relevant studies in the previous 10 years, many emanating from the Agricultural Economics Unit at the University of Exeter. Taken together, however, given their differing scope, methodologies and sampling frames, these projects have allowed us to draw some conclusions with confidence. They have enabled us to confirm key trends, such as the accelerating decline in primary agricultural production; the increase in demand for organic products; the increase in demand for convenience and versatile foods; the increasing dominance of the major multiple retailers; the importance of food safety and traceability; and the dramatic shifts in the food supply chain and its management.

They have also allowed us to make recommendations for regional strategy. There is insufficient space to here to explain the reasoning, or to identify more than a few of the most important:

· Developing the understanding, skills and mechanisms for effective chain management in the food industry.

· Researching, developing and promoting regional identity (with or without Protected Designation of Origin (PDO) or Protected Geographical Indication (PGI)). Developing quality assurance processes in support of such regional branding.

· Supporting development of high-quality training to develop both technical and managerial skills.

· Generation of freely-available, high-quality statistical information, particularly for the secondary and tertiary industries, and establishment of longer-term studies including modelling and input-output analysis.

· Establishing partnerships to exploit interests shared with other sectors of the regions economy, especially the tourism and leisure industry, but possibly also the growing environmental industry.

· Exploiting apparent regional advantages for organic production, both in providing support for production and in developing domestic markets.

· Promoting group working of farmers in order to meet market demands for quantity, quality and traceability, and supporting co-operative marketing for small food and drink firms.

· Promoting sustainable farming through dissemination of good practice;

· Strengthening links with the local economy through local sourcing of food products.

In particular, we identify the key role played by family businesses in South West agriculture, and recommend the establishment of a Farm Family Enterprise Centre with the aim of increasing the capacity for change in such businesses in the South West of England through, for instance:

· Enhanced business support (eg advice, technology transfer) specific to the needs to the needs of farm family businesses, delivered through third parties;

· Improved penetration of the agricultural industry by business support agencies (both public and private), facilitated by a professional development programme for agencies and professions;

· Improved intergenerational transfer of farm family businesses;

· A growing self-help culture building on existing strong community ties;

· A rigorous programme of applied economic, social and environmental research, including extension of existing work on small rural (market) (eg Errington and Courtney 1999).

Where do we go from here?

In carrying out these studies, we have been able to recommend actions which would further the aims of the organisations who commissioned the studies. The feedback we have had from these has been very positive. However it is still unclear how the region will progress from this stage to formulating a workable strategy for agrifood and rural areas. There are questions about process: how, for instance, will priorities be determined, and conflicting demands reconciled? To what degree can conventional strategic planning theory help in a public-sector problem of such complexity? How far can academic advisers be involved in design and implementation of strategy without compromising their own integrity or trespassing on the role of elected council members?

There are questions about responsibility and accountability. Who should direct the strategy? The Regional Development Agency is the obvious choice, but is regarded with suspicion in many quarters, being thought to be unwieldy, insensitive to local issues, lacking in accountability to an electorate, and having an urban bias. Given that many counties and districts are already strongly committed to developing their own strategies, how can their ideas and enthusiasm be maintained while avoiding a muddle of independent, overlapping policies? There are questions about commitment: once a strategy has been devised and agreed by the major players, how will it be enforced (there is no scope for legislation to force compliance)? There are questions about resources: where will the money come from, and what will be sacrificed to provide it? Does the will exist to fund long-term research projects to enable modelling of effects of plans, and evaluation of their eventual effects?

Rural strategy in the South West of England is thus at a fascinating, but frustrating stage. With the right leadership, commitment and goodwill, it could transform the fortunes of the region: if it fails, the consequences will be deep and long-lasting. Maybe we should be looking to our colleagues in central Europe, with more experience than us in economic planning, for guidance.

References:

Errington, AJ and Courtney, P (1999) The role of small towns in rural development: a preliminary investigation of some rural-urban economic linkages XI Congress of the European Association of Agricultural Economics, Warsaw, August 1999.

ERRINGTON, A.J., WARREN, M.F. and MURRAY, K. (1999) Agriculture in the South West Report for the Sustainable Round Table of the South West of England Regional Development Agency. Joint University Sustainable Development Unit, March 1999.

WARREN, M.F., ERRINGTON, A.J., SHEPHERD, R.A. (1998) The future of Cornish agriculture, and the rôle of Cornwall County Council . Food Technology Centre, University of Plymouth, for Cornwall County Council.

WARREN, M.F., TURNER, M.M., ERRINGTON, A.J., MCINERNEY J. (1999) Agricultural Development and the Operation of EAGGF Structural Funds in South West England Universities of Plymouth and Exeter, Newton Abbot, Devon, UK. 116pp

WARREN, M.F., SHEPHERD, R.A. and MURRAY, K. (1999) Strategic issues in the Food and Drink Sector of the South West of England. Research commissioned by various public sector organisations as contribution to strategy of South West Regional Development Agency. University of Plymouth June 1999. 138pp.

WARREN, M.F., ERRINGTON, A.J. and MURRAY, K. (1999) Agricultural Development in the South Hams. Research commissioned by South Hams District Council. University of Plymouth July 1999. 90pp