Urban Food Chains

the links between diet and power

France livestock
Forging urban food chains
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France in the closing years of the 18th century was in total chaos. The Terreur (terror) reached its height with the execution of the Jacobin leader Maximilien Robespierre in the summer of 1794. In the years that followed, the Consulate took control led by Napoleon Bonaparte. The young Napoleon set himself the task of clearing away all the old laws and the rag-bag collections of local regulations (“coutumes”).  He replaced them with the “Code Civile” that set out the rules for a constitutional reset.

The code was secular and written in ordinary French. It detailed what was expected of citizens — considering men to be equal before the law, while assigning women the role of dowry-bearers, facilitating the transfer of property and assets between families. Because of the contractual importance of marriage, there were elaborate requirements to ensure that men were legitimate before they could be married. The husband owned his wife’s dowry, but not her paraphenalia.

The code also laid out commercial frameworks and set standards for product liability. For instance, artisans and craftsmen were required to give a ten-year guarantee on their work. When selling land, sellers were obliged to include the oxen teams and equipment needed to work the land. And those acquiring livestock with a farm were required to keep the animals exclusively on that farm, keeping the dung on the holding. It is worth remembering that rural France was heavily  populated in those days, but over the coming century, this was about to change. The Code applied to both town and country, as well as to those on their travels. For example, innkeepers had a legally enforceable duty of care for their guests’ goods and chattels, which extended to those working on the premises, protecting them, too, from light-fingered interlopers.

The March 1804 version of the Code Civile had more than 1800 paragraphs and was the largest version to be put up for adoption. There were prolonged debates about all three circulated versions, each with different numbering and paragraph counts. Some of the articles in the Code Civile still apply to this day, often heavily modified. The administrative commitment to a document-based system put a greater priority on literacy. Deaf or visually challenged citizens who could read had protected access to the provisions of the code unlike non-readers who made their mark to sign off  documents they could not read.

olives
Growing demand
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Source: Intrastat

Total imports of Spanish olive oil to the UK topped 92,000 tonnes in 2021. That includes retail products, industrial, pharmaceutical, food manufacturing and UK-bottled own label product. The only tonnage it leaves out is olive oil sold by Lidl and Aldi. That represents a lot of demand for physical stock. Over the past decade it has climbed from 70,000 tonnes, with a wobble caused by high fuel prices in 2018.

olives
Olive oil by numbers
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The UK has been a strong market for olive oil in recent years, in a world where consumers are spending more than 14 and a half billion pounds a year on the Mediterranean’s most important crop. UK consumers will be paying rather more than their European neighbours in the coming months. They already pay over the odds, as it is.

The UK market caters for small introductory purchases: 250ml bottles currently retail for GBP 2.45p for olive oil, GBP 2.55p for EV (Sainsbury on June 1), while a Tesco 250ml bottle of bland mild and light olive oil has risen by 18% over the past year to GBP 2.83p. Tesco pricing for a litre of leading brand EV has risen steadily over the past 18 months by 50% from GBP 6.95p to GBP 10.40p, while ASDA increased the shelf edge price for the same branded litre of EV from GBP 6.50p to GBP 8 on June 1.

As of June 1, the ASDA shelfedge price for a one litre bottle of Filipo Berio EV went up to GBP 8, while Tesco was asking GBP 10.40 for the same product. It is safe to suppose that ASDA was not selling this line at a loss. So “every little helps” Tesco is charging 30% more than its rival. The day before, the differential was 60% for the same stock on the same shelves in their respective stores.

At a nearby town centre branch of Iceland during the same store check, the olive oil category was a one liner in every sense of the phrase. It comprised a single SKU, 500ml of ordinary olive oil for £4 in a tertiary brand, packed in a tidy plastic bottle. A no-frills distress purchase.

UK grocers selling olive oil have been milking the category. Spanish consumers get through a per capita average of 10 litres a year. They know what it’s worth and expect to get value for money. At the moment, headline olive oil prices are rising and are close to EUR 5,500 a tonne for EV grades. UK retailers will have to rethink their margin expectations if they are going to secure product and continue selling it. The party’s over, guys.

Brexit's legacy key concept olives
Rules Of Origin (ROO)
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Goods that combine components from more than one trading bloc are subject to the Rules Of Origin procedure. Goods made in the EU are zero-rated on arrival in the UK, while the status of duty payable on third country components or ingredients used in EU goods is determined by applying Rules Of Origin. These establish whether or not the third country component has been transformed sufficiently for it to be considered an integral part of a new product. If it is a fellow traveller in a blended product, for instance, it is liable for duty.

The first target is to ascertain whether or not the component concerned has been absorbed into the finished EU product. If so, it can usually be covered by the duty payable on the finished product. If, on the other hand, it can be recovered from or identified within the EU product, the third country component may be liable for third country duty pro rata. The key marker is whether or not the third country component qualifies for a change of customs code. This will be decided by the UK customs staff on a case by case basis.

In the case of third country extra virgin olive oil (1509 2000), it is considered a fellow traveller in a blended product. This currently stands at 104 gbp per 100kg, according to the UK government online tariff service, https://www.trade-tariff.service.gov.uk/subheadings/1509200000-80 (as of check made on May 29).

olives
Olive oil stocks under pressure
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Spain, the world’s largest producer of olive oil, faces the prospect of running out of extra virgin olive oil in the coming months. According to industry figures seen by Urban Food Chains, forecasts for worldwide consumption of olive oil are expected to drop from 3.1 million tonnes to 2.9 million tonnes in the current campaign. There is a potential shortfall of 745,000 tonnes worldwide.

The Spanish industry invested heavily in extensive tree plantings around the turn of the century, with enough trees and crushing capacity to produce one and a half million tonnes of olive oil in a season. But the 2022-3 crop was a poor crop and down by over 50 percent against the previous campaign. This year a lot of flowers set on the trees, but like last year, the trees are stressed and are shedding the fruit.

With total olive oil stocks  across the Spanish industry hovering at just over 607,000 tonnes, the sector faces empty tanks later this year. Domestic consumer demand is strong and April sales in Spain topped 63,000 tonnes. With at least six months to go before the next harvest comes onstream, Spanish consumers will be competing with exporters for physical stocks of olive oil.

Demand is strong and prices are high but expected to go up even further. Assuming that Spanish consumers ease up on their purchases of olive oil, which is not a given, a 5% drop in month on month sales volumes would represent a requirement of just over 277,000 tonnes between now and the next crop. The Spanish industry delivers shiploads of olive oil around the world and all over Europe by tanker truck. Exports as of around 50,000 tonnes a month would empty the country’s remaining stocks by November.

data source: International Olive Oil Coouncil

Like any other crop-driven commodity, there is a numbers game in play and prices will rise steeply to head off strong demand. Retail margins will come under pressure as physical product becomes harder to obtain. The EU has trade deals with north African producers, who can ship quota  tonnages that member states can draw down with zero duty. Should any of this third country olive oil be packed for the UK market, even in a blended product, Rules Of Origin (ROO) would apply on arrival at the UK frontier, where duty would be charged on the non-EU content.

But the underlying concern has to be the drying out of water tables across a huge swathe of southern Europe and the Mediterranean basin. Olive trees have deep roots, but not deep enough, it might seem. In Spain, the planting of thousands of trees has propped up crop yields most years, but not all. This year’s forecast being a case in point.

Background notes about olive oil.

dairy livestock
Between a rock and a hard place
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Hampshire tenant farmer Oliver Neagle was forced to cull 18 of his cows after water supplies to his farm were cut. The dairy farmer pays for water as part of his rent, however he endured breaks in his supply in December and February. Southern Water laid on bottled water for consumers, but had no solution to offer Neagle’s livestock. The number of lactating cows on his farm has gone down from 110 head to 82. With fewer milking cows, the business is compromised and faces harder times. You can read the BBC’s account of what happened here.

This story is an example of the sort of public interest reporting carried out by local BBC journalists that would not have had any traction for commercial broadcasters. Neagle’s story must not be allowed to go down the back of the sofa, no more than the importance of fearless public sector journalism should be undervalued or misunderstood. 

City life cultivation food production
City life 2.1
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Is the writing on the wall for hydroponics? Vertical Farming Daily reports on trials for aeroponics in an adapted hydroponics line. The new technology has to fit in with existing installations to stand a cat in hell’s chance of being considered, but rises to the challenge of producing crops faster using less water. The plug and play modification showed increased yields of just over 20% in trials organised by aeroponics developer Lettus Grow, using the firm’s Aeroponics Rolling Beds (ARB).

These replacement growing trays keep seedlings suspended in the air, receiving nutrients in a carefully controlled fine mist at fixed intervals. To eliminate any risk of blocked nozzles, the Lettus system uses ultrasonic technology to shake droplets of growing solution into the roots of the crop, generating a fine mist.

The application of the nutrient mist can be very closely controlled, keeping the growing medium dry and making the crop easier to manage. The technology is being trialled in widely varying situations. Farming family business GH Dean & Co Ltd in Kent is partnering with grower Ro-Gro in a bid to speed up the development of a new revenue stream, redefining the rate at which a return can be earned on a new agricultural activity.

HM Prison Hewell is using aeroponics to train inmates in the new techniques. As well as growing fresh food for inmates there is enough to sell outside the establishment, too. Local action group Cultivate is creating a local food network to feed communities around Newtown, Powys, while Grow It York is looking to develop food strategy with aeroponics.

Vertical farming has much to commend it. By focussing on one stage of plant development it is easy to miss one important detail, though. Since it does not complete the plants’ life cycle, it does not generate seed stock for further crops. This remains as an input in the sector’s otherwise admirable environmental credentials.

food manufacture food production raw UK
Investigating hydrogen
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For the past eighty years scientists have been rolling up their sleeves at the Glensaugh research farm and finding robust answers to the problems facing the agricultural sector. Perched on the east coast of Scotland not far from Aberdeen, the site is set to become a carbon neutral farming environment once its building programme comes on stream, pencilled in for 2025.

BBC journalist Nancy Nicolson visited Glensaugh for an edition of On Your Farm, which aired on April 30 and is still available on BBC Sounds. Water is the key to the project, using an industrial scale electrolyser to generate hydrogen that will power tractors and heavy machinery. This will in turn be powered by an array of green energy sources, such as turbines and solar panels.

A headline figure for the project is four million pounds: this is explained in part by the additional cost of being early adopters of technology that is still in development. This project will cast a light on the current operational energy needs of a one thousand hectare estate. Investment on this scale in one agricultural location is based on the assumption that the rest of the national economy will still be functioning in the future, in a recognisable form. We are still a long way from converting urban centres into sustainable economic entities.

Listen to Nancy Nicolson here: https://www.bbc.co.uk/sounds/play/m001lhz1?partner=uk.co.bbc&origin=share-mobile

cultivation food production plants retail
Looking ahead
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Gaps in supply chains are set to become a regular feature of the UK economy. In April, supermarket chain Morrisons started limiting customers to two sweet peppers per shopping trip because of procurement difficulties for salad ingredients. Cold weather in southern Europe has led to shortages across the continent, while high energy costs have deterred UK growers from planting early greenhouse salad crops. Supplies of early season tomatoes and cucumbers have also been affected.

Traditional sources for these crops are Spain, Morocco and neighbouring north African countries. The combination of higher fuel costs for imported salad crops and the cold snap has wreaked havoc.

In March, the UK recorded headline Consumer Price Index (CPI) inflation of 10% https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2023 But take a closer look at the Office of National Statistics data and consumers will learn that food inflation is running at around 19% (CPIH 12-month rate for March 2023). Climate disruption is just one of many factors that will have a generalised effect on future developments in many sectors. Animal products of all kinds have already been heavily impacted in recent months and the sector can be expected to see further upward pressure on prices if producers are going to stay in business.

City life cultivation food production
City life 3.0
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On the surface, urban life appears to be very deeply compartmentalised, when large populations find themselves living cheek by jowl while maintaining social separations, such as class, race or status. However, there is no separation in nature, the planet has a single atmosphere, a single ocean, not to mention shared land masses. Ultimately, all nature’s resources are shared, with an often over-generous share being taken by humanity. The planet does not respond or challenge this phenomenon, but continues to meet all demands made of it, by human and animal alike, on a first come, first served basis.

Wherever humanity has left the by-products of its plundering, such as ash, exhaust gases or radioactive residues, these have accumulated and degraded down the centuries. Nature does not judge polluters, just keeps their dirty little secrets on view for all to see. To avoid eternal shame, humanity actively needs to work in harmony with nature, instead of emptying the sweet jars in the planetary candy store.

There have been civilisations which have lived in harmony with the natural world, spanning millennia, sadly we have very limited knowledge of their cultures, or indeed the roots of their eventual demise. Managing soil fertility was doubtlessly a cornerstone of their endeavours, making a closer study of the Indore project a high priority. It is time for subscribers to unpack Sir Albert Howard’s legacy.