Marches LEP identifies problems restricting growth for food firms

RED tape, price pressures and staffing issues are the main factors impacting the growth of food and drink businesses in parts of the West Midlands.

Research carried out by the Marches Local Enterprise Partnership was conducted to try and identify the strategic needs of firms operating in this important sector.
 
The research, which was carried out in order to support applications to the Rural Development Programme for England (RDPE) Growth Programme, will also determine where future funding should be focused in order to create the greatest benefit.
 
The study highlighted a number of key factors restricting growth, notably legislation and regulatory issues together with issues around pricing, especially those exacerbated by margin-conscious supermarkets. The recruitment and retention of trained staff was also seen as a challenge to many firms in the sector.

Of the firms responding to the survey, 72% of those citing these issues went as far as to claim they were definite barriers to growing or diversifying their businesses, along with issues around funding and the high level of investment often required to realise growth.
 
Commenting on the research findings, Gill Hamer, director of the Marches LEP, said: “The food and drink sector is of vital importance to the Marches, contributing at least £1.9bn to the region’s economy (2011) and employing at least 9,000 people. It is, therefore, of paramount importance that we are clear on where future funding should be focused.

“Knowing the areas that those in the agri food and drink sectors would welcome further grant funding in is invaluable as we seek to support them to realise their true potential whilst both maintaining and growing their invaluable contribution, not just within the region, but also nationwide.”