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The National Non-Food Crops Centre

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The National Non-Food Crops Centre The National Non-Food Crops Centre AN ASSESSMENT OF NON-FOOD CROP OPPORTUNITIES IN THE SOUTH EAST OF ENGLAND June 2006 - i - A SEEDA funded report, prepared by; Lucy Hodsman National Non-Food Crops Centre Biocentre, Innovation Way Heslington, York YO10 5DG With additional contributions from; West Sussex County Council Kent County Council - ii - Executive Summary The South East of England is the largest Region in the UK, aiming to create a prosperous, dynamic and inspirational region and supporting and enabling local communities whilst safeguarding natural resources and cherishing rich cultural heritage. Currently agriculture sustains 39,800 jobs in the South East Region, in comparison to that of the manufacturing industry, which is almost tenfold at 357,700, this figure is marginal [14]. It is therefore becoming increasingly important to retain the skills and expertise currently involved in the agricultural industry and encourage those involved to remain and younger generations to pursue land-based careers. One option many farmers are now considering, since the reform of the Common Agricultural Policy in 2004, is the cultivation of crops for non-food and industrial markets. The Reform has provided farmers with the freedom to move away from intensive food production, towards new or novel crop options which may previously never have been considered. By cropping the land in this differing manner growers are able to maintain their arable roots, whilst targeting varying markets, potentially adding value and increasing farm income. Within the food sector the South East is committed to supporting local produce; through working with farmer groups, local food groups and other agencies to promote development and encourage new outlets through farmers markets and village shops. A similar commitment should be made in the non-food sector, to assess opportunities for local production processing and marketing, thus retaining income and added value within the Region. This study was commissioned by the South East of England Development Agency, to identify new crop opportunities or new markets for arable farmers to target within the South East region. The key outcome of the study was a refined list of priority opportunities which should be pursued in order to add value to agriculture and the wider rural economy within the region. An initial trawl for information on potentially viable opportunities, suited to current production systems and current production, processing and marketing capacity within the region was carried out, the results of which formed the basis of the study. The potential of each opportunity was reviewed in terms of level of agronomic development, maturity of the market, potential for local production, processing and marketing, and likely social, economic and environmental impact. A total of seven crop opportunities, targeting five different markets was selected as offering the greatest potential and progressed on to the further stages of the study. The opportunities showing greatest potential were; • HEAR / Crambe • Borage / Echium • Camelina • Dual Hemp - iii - • Herbs The selected opportunities are those showing potential to be established and viable within a 0 – 3 year timescale, therefore not incurring further delay to development of the non-food corps sector within the region. Each of the selected opportunities passed through a more detailed review, whereby the agronomy and market information was collated and presented, in addition to the potential for adding value, both at the farm and regional level. Where possible, scenarios and examples illustrating the economic benefits of on-farm processing or forming a joint co-operative were demonstrated and the viability discussed. Finally, each opportunity was also assessed, in terms of its potential impact on the Region. Social, economic and environmental impacts were considered. For each of the selected opportunities the production potential was assessed and GIS technology applied to generate maps illustrating potential production areas within the Region. From the mapping exercise it was also possible to quantify the area of land potentially suited to production, and hence assess the potential impact more accurately. The Region has a broad range of readily established expertise and capacity in terms of R&D, agriculture, processing, manufacture and end-use which should be utilised at every opportunity. Manufacturing industry is particularly strong within the region, offering farmers the opportunity to grow and primary process crops on-farm, prior to feeding into readily established manufacturing businesses, in many cases allowing the entire supply chain to be retained locally. It is not likely to be possible for larger scale, commodity crops to be processed, manufactured and marketed locally due to the nature of the market; however in many instances such crops can be primary processed on-farm, thus adding value by marketing an oil, for example, as opposed to a seed. For some of the smaller scale, more specialised enterprises, on-farm processing is likely to offer significant potential. In many cases the growers are able to retain the majority of the supply chain on-farm, and in certain instances opportunities for local marketing and even branding of products are evident, thus allowing value to be retained on-farm and within the wider rural economy. Local processing facilities, potential funding streams and contracts were identified and presented for information; however the list of useful contacts should be consulted prior to changing the current functionality of any viable business. Finally, to assist with decision making a list of potentially relevant legislation and policies was collated and presented to provide an overview of potential barriers or opportunities which may be faced. It is hoped that this study will initiate activity within the Region and will form the basis of information for various key players in the supply chain. - iv - At the request of West Sussex and Kent County Councils the Regional scale information was further refined, taking into consideration the potential for more local processing, production and marketing; existing activity; local capacity; and the results of the GIS mapping exercise. The following opportunities were those showing greatest potential within each County, to form the focus of activity in the near future; West Sussex County Council; • Crambe • HEAR • Dual hemp • Rosemary Kent County Council; • Borage • Echium • Camelina • Dual hemp • Rosemary Due to the nature of production and the markets for such crops, it is difficult to quantify the potential impact; however information can be utilised from the Regional scale study to inform the most viable options for each selected opportunity. - v - Table of Contents 1.0 Introduction ................................................................................................1 2.0 Methodology...............................................................................................2 2.1 Assess current activity........................................................................................2 2.2 Identify potential opportunities for the Region....................................................2 2.3 Assess potential opportunities for the Region....................................................2 2.4 GIS Mapping Exercise .......................................................................................3 2.5 Potential for local processing and marketing......................................................4 2.6 Financial support / useful contacts.....................................................................4 2.7 Council scale review ..........................................................................................4 3.0 Background to the Study..........................................................................5 3.1 Agriculture & forestry..........................................................................................5 3.2 Industry ..............................................................................................................6 3.3 Agricultural Incomes...........................................................................................6 3.4 Opportunities for Adding Value ..........................................................................6 4.0 Market Opportunities.................................................................................8 4.1 Oils .....................................................................................................................8 4.2 Fibres .................................................................................................................9 4.3 Carbohydrates..................................................................................................10 4.4 Speciality..........................................................................................................11 4.5 Energy..............................................................................................................12 5.0 Current Activity in the Region............................................................... 13 5.1 Research and Development.............................................................................13 5.2 Agriculture ........................................................................................................13 5.3 Processing .......................................................................................................15 5.4 Manufacture .....................................................................................................16
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