A Plan for Public Sector Food Procurement

Government Plan for Local and Sustainable Food Procurement 

The Government's 2010 estimates show that the UK spends roughly £2.4 billion annually procuring food and catering services, representing approximately 5.5% of UK food service sector sales. This includes key areas such as school and hospital meals. In order to improve the UK's food security, and support British farmers, the Government is encouraging the public sector to source more of this food locally and sustainably. Sourcing food locally will create more opportunities for British farmers, giving them a chance to supply year-round contracts and strengthen local economies. The Procurement Act 2023 was introduced to replace the current EU-law based regime and is expected to enter fully into force by October 2024. The Government believes that “reform will make procurement simpler, quicker, more transparent and less bureaucratic” in the hope that this will create more opportunities for new businesses, including small and local companies who wish to deliver public contracts.   

Current Barriers to Organisations Signing up to Local Procurement? 

Tenders are crucial in food procurement as they should aim to ensure the process is fair and efficient. However, they can exclude smaller local suppliers and act as barriers due to the following reasons:  

• Complexity and Compliance Requirements: Complex regulations and compliance requirements, which can be particularly burdensome for smaller local food producers or suppliers who may not have the resources or expertise to navigate them effectively. 
• Cost of Participation: Participation via preparation and submission of bids can be costly. For smaller, local food producers this can act as a deterrent.  
• Scale Requirements: Small-scale producers may not be able to meet the scale requirements, thereby excluding them from participation. 
• Lengthy Procurement Timelines: Long timelines can be challenging for local food producers who may have limited production ability or seasonal products with shorter shelf lives. 
• Preference for established suppliers: Established suppliers with a track record of fulfilling large contracts are likely to be prioritised over smaller, local suppliers. 
• Standardisation of Specifications: Requirements to meet standardised specifications and quality standards may not align with production methods of smaller, local suppliers. 

How Significant Could This Reform be for UK Food System? 

The Government supports looking at the bigger picture of public benefits when making purchasing decisions. This prioritises creating local employment opportunities, fighting climate change, encouraging diversity among suppliers, and fostering innovation when buying goods and services. By integrating these considerations into procurement procedures, authorities can also help meet the needs and preferences of local communities. However, a more subtle message is broadcast. Currently, following standard business practices, farmers are subjected to market fluctuations in deciding payment for their produce. Consequently, the Government's recommendation for more local and sustainable food sourcing, reinforces this underlying message to the wider consumer – starting a ripple effect, with profound implications. With time, a more efficient and resilient supply chain can be created, reducing food miles, carbon emissions, and enhanced support for local businesses. Some UK councils are actively backing local farmers by buying their produce for events organised by the council. Staffordshire Moorlands, Wiltshire, Dorset, and Cornwall are just a handful of instances. 

 Does the Act Realistically Address the Barriers? 

The Procurement Act 2023 encouraging public bodies to use smaller, local suppliers for food contracts will be the biggest challenge in the implementation. Wherever possible, contracts should be broken down into smaller lots to ease participation from businesses that may have limited product ranges and volumes. Though, addressing the stated barriers will require reform to streamline tendering processes, provide support and incentives for local food producers, and incorporate flexibility and sustainability considerations into procurement criteria. Nevertheless, ensuring value for money will persist as the core aim for procurement. As a result, smaller local businesses may remain unable to compete for public food procurement contracts. If these smaller suppliers can form secure groups, they may be able to reduce packing and processing costs, as well as other services that may be required, through greater purchasing power. This is achieved by buying items in bulk, often at lower prices per unit. 

 For inquiries and further information, please contact:? 

Jarrad Redhead 

Graduate Sustainability Consultant 

Tomson Consulting Ltd? 

jarrad@districteating.com