Tag: Richmond Assest Finance (page 12 of 12)

Inflation pressure eases on households

18th September 2013 / / Comments Off on Inflation pressure eases on households

Households have been promised a long-overdue improvement in living standards after inflation eased in August, taking some of the pressure off family finances.

The consumer prices index (CPI) dipped to 2.7%, from 2.8% in July, taking it below the Bank of England’s own forecasts and putting inflation on course to hit 2% at the end of the year, economists said.

A slowing in the pace of clothing and petrol price rises, as well as air fares, kept a lid on inflation last month, the Office for National Statistics (ONS) said. Petrol prices increased just 2% between July and August to £1.37 a litre, compared with 3.5% in 2012.

Michael Saunders, UK economist at Citi, said: “We expect CPI inflation will fall further in coming months, and our base case at present is for the rate to be … 2pc in December.”

He added that the Chancellor’s recent hint at plans to reduce or cap regulated prices, such as train fares and utility bills, posed “a possible downside risk to our forecasts”.

A 25% fall in global wheat prices over the past year, in sterling terms, is expected to put more downward pressure on inflation over the next six months.

The prospect of declining inflation will come as welcome news to households, who have suffered a 7% fall in real average earnings over the past five years – making the current household squeeze the second deepest since 1860. Average wages are rising at just 1% currently, two-thirds less than prices. Labour has seized on the drop in living standards as evidence that the recovery is not being felt by most families.

“With prices still rising much faster than wages the cost of living crisis under David Cameron continues,” Cathy Jamieson, Labour’s shadow Treasury minister, said.

“Working people are worse off by almost £1,500 a year. But rather than helping ordinary families David Cameron is so out of touch he has given a huge tax cut to millionaires instead.”

A Treasury spokesman said: “Inflation has fallen, and is nearly half of its peak of 5.2%. The economy is turning a corner, but the recovery is in its early stages and risks remain. The only way to deliver a sustained improvement in living standards is to tackle the economy’s problems head on and deliver a recovery that works for all.”

Signs that inflation is falling were underpinned by the month-on-month rise in CPI. At 0.4%, it was the lowest August rise since 2009. However, the retail prices index (RPI), a separate measure that includes housing costs, rose from 3.1% to 3.3%.

Economists said the figures were unlikely to have much impact on when the Bank of England will start to raise interest rates from 0.5%, which the markets expect to be in early 2015. “We judge there to be relatively few policy implications from today’s numbers,” Philip Shaw at Investec said.

A separate release by the ONS on producer prices suggested that there is little inflationary pressure brewing. Input prices fell in August by 0.2%, and output prices rose by just 1.6%. “Falling factory gate price pressures bode well for inflation at the high street level,” Mr Shaw added.

Compensation for 300,000 after loan rate error

17th September 2013 / / Comments Off on Compensation for 300,000 after loan rate error

Barclays miscalculated personal loan interest rates over five years. Barclaycard customers could also be affected.

Around 300,000 Barclays customers are to receive compensation after the bank miscalculated the interest owed on personal loans. The total cost is estimated to be at least £100m after mistakes were made on paperwork since October 2008. The compensation paid could be an average of £330 per borrower.

The total bill for the bank, and the number of people affected, could be higher. Other divisions – Barclaycard, Barclays Wealth and Barclays Corporate – are now undertaking a review to see if customers were short-changed by the errors.

A spokesman described the latest problem, which relates to arrears notices and statements, as “technical documentary errors”. The errors on statements and arrears notices were mentioned in annual results in February, when it reported that income had declined “due to provisions taken to remedy historical interest charges incorrectly applied to customers”.

The company has now said it will write to customers while more detail was published in a wider 185-page document yesterday. Barclays said it had “identified certain issues with the information contained in historic statements and arrears notices relating to consumer loan accounts. It is therefore implementing a plan to return interest incorrectly charged to customers”.

A spokesman for the bank said: “Barclays has proactively reviewed information it has historically sent to its customers relating to interest charges, where we have found technical documentary errors. As a result Barclays has identified certain issues with the information contained in some statements and arrears notices relating to consumer loan accounts.

“Due to these notification errors, interest was not due on certain accounts during the period that Barclays made this mistake, and whilst no one has been mis-sold to, customers are entitled to have their interest payments returned. No customer will pay more than they were ever contractually expected to.

“Barclays has notified the Office of Fair Trading (OFT), which is responsible for consumer credit issues, and is implementing a plan to return interest payments to customers as swiftly and efficiently as possible. Barclays is undertaking a review of all its businesses where similar issues could arise to assess any related issues.

“Any affected customer will be contacted by Barclays and customers do not need to take any action.” Letters will be sent out next month to affected customers.

The error was revealed in a prospectus for Barclays’ £6bn 1-for-4 rights issue, which was launched yesterday to plug a regulatory capital shortfall.

It also admitted that it was facing a £50m regulatory fine for failing to disclose payments made to Qatar which it dressed up as fees for “advisory services”. Barclays paid Qatar £322m in hidden fees to secure the gas-rich Gulf state’s support for its rescue fundraising at the height of the financial crisis and keep the bank out of UK taxpayers’ hands.

Barclays also faced stinging criticism in a new ethical scorecard of banks, published yesterday. Barclays’ 12 million current account customers have been urged to switch to other banks and building societies after the bank scored just four out of 100 points in a test for honesty and customer service.

Campaign group Move Your Money said Barclays was the lowest scoring financial institution out of 70 assessed. The findings were published amid the launch of the industry’s new Current Account Switching Service, which promises to transfer accounts hassle-free within seven working days.

Anthony Jenkins, who last year replaced controversial chief executive Bob Diamond, has gone to great lengths to underline a new era for Barclays, promising to make it a “valuable and sustainable institution”.

Construction output rises in July, raising recovery hopes

16th September 2013 / / Comments Off on Construction output rises in July, raising recovery hopes

Britain’s struggling construction sector beat estimates for its latest monthly performance, as the Government-backed housing recovery helped to increase new business.

Output from the construction sector grew by 2.2pc in July against the previous month, official figures showed, driven by new business placed at firms. Growth in private housing led this, with activity up 14.7pc on a year earlier. The data raised hopes that building firms are finally “turning a corner” and helping the wider recovery to pick up speed.

“This suggests that the recovery in the housing market seen in recent months, supported by schemes such as Help to Buy and Funding for Lending, is starting to translate into a recovery in house building,” said Scott Corfe, managing economist at the Centre for Economics and Business Research. “The strong growth… may alleviate concerns in some quarters that schemes such as Help to Buy are going to merely inflate house prices while doing nothing to increase the stock of housing in the UK.”

However, he cautioned that the “tentative” signs of housing supply responding to demand were unlikely to stop property becoming even less affordable in coming years.

Building firms are bouncing back from a very low base as activity grew to a near halt during the financial crisis. Last year, output was still almost 14pc off its level in 2007.The latest headline month-on-month growth seen in July came after a 1.1pc fall in June. The improvement meant that the industry’s output was in August 2pc higher than a year ago, the strongest annual gain since 2011.

In a further positive sign, the figure for the second quarter of the year was revised from 1.4pc to 1.9pc, the Office for National Statistics said. Over that quarter, construction orders for new housing were up by 19.4pc, the biggest rise seen since autumn 2010. The data helped push sterling to a seven-month high against the dollar, hitting $1.5872 in afternoon trade.

Economists said the positive contribution from construction put the UK economy on track to beat the 0.7pc growth achieved in the second quarter of this year. While the sector’s output accounts for just under 7pc of the UK’s total gross domestic product (GDP), its volatility means it can have a large impact.

“The surge in UK business optimism is feeding through to the hard data now,” said Robert Wood, chief UK economist at Berenberg, predicting GDP growth of 0.9pc in the third quarter of this year, and 0.7pc in the fourth.

Alan Clarke at Scotiabank was still more bullish, forecasting GDP growth of 1pc for the third quarter. “So far, so good,” he said. “The key thing that we are waiting for is the monthly services output data.”

#BackBritishFarming

6th September 2013 / / Comments Off on #BackBritishFarming

We here at Richmond Asset Finance are Backing British Farmers! We understand the hardship that today’s farmers face, and we want to help as much as we can!

The population of Great Britain is growing rapidly with the country experiencing the biggest baby boom in 40 years! Did you know that British food supplies would have ran out on August 14 if all the food produced in Britain in a year was stored and eaten from January 1 onwards.

But our British farmers are determined to reverse this trend and produce enough food for the needs of generations to come – but we need politicians, supermarkets, retailers, food processors, restaurants and cafes to play their part to let them do their job.

The National Farmers’ Union have created a charter calling for a commitment to put British farming at the heart of the challenge of feeding us all in the future – and they need OUR support!

Sign the Back British Farming charter now and show them your support!

So far they have now got over 1250 signatures on the #BackBritishFarming charter.

And don’t forget to tell your friends to sign the charter too! Make it British, Make it local, Make it Happen.

How to value your manufacturing business

4th September 2013 / / Comments Off on How to value your manufacturing business

Putting a price tag on a manufacturer is a rather complicated business. Hi-tech machinery, strong supply contacts, and a diversified risk profile can all add millions to a market cap.

Manufacturing output in the UK surged upwards by nearly 2% in June according to the Office for National Statistics. This is the strongest monthly increase since the end of 2010. This is important – changes in manufacturing output are often a useful barometer for economic growth for the UK as a whole. Given the improvement in manufacturing prospects, owners of manufacturing companies should be thinking about the impact on the value of their businesses.

A key consideration for value is the volume and value of supply contracts. Manufacturing output is driven by contracts to supply. Very few manufacturers produce on a speculative basis, preferring to produce volumes on the basis of orders. If the associated revenues of a manufacturer are not secure, in that there are few contracts in place, or the product itself has a limited or uncertain future, then it is likely that an investor will demand a higher return on any capital invested in return for a shorter business life.

Providing certainty over future revenue generation is positive for valuations. One way that investors will assess the predictability of revenue is by analysing the terms of the existing contracts, looking particularly at size, length and the contractual renewal terms of contracts. Historical, together with current performance may also provide a useful guide when considering the likelihood of renewing contracts, customer churn and the ability to secure new custom.

Clearly, manufacturing businesses with greater certainty over cash flows and long term contracts will be valued more favourably than those that lack this certainty.

‘Concentration risk’ is also a key valuation consideration for prospective buyers. Certain manufacturers, such as apparel manufacturers supplying large retailers, may have it as a condition of their contract that they are exclusive suppliers and, therefore, are not able to supply anyone else in order for them to guarantee supply lines. While contracts may be lucrative and the association with the likes of M&S or Next provide profile, losing a contract would jeopardise the business. Such a risk could weigh heavily in the mind of a prospective investor. This is a particular issue for manufacturing businesses making generic products which could be easily produced by another supplier, and in a cheap labour economy.

As with many other industries, customer relationships may also have an influence on the value of a manufacturing business. A solid relationship with key buyers within large retailers can positively impact value because of the possibilities for future contract wins and the implied stability of existing arrangements.

Investors will also analyse the other major contracts of the manufacturing business, such as operational leases. For example, the business may have a long term lease over its manufacturing premises representing a significant overhead. If there are high costs present within a business alongside uncertain or poor revenue prospects investors will steer well clear.

As one would expect within a manufacturing business, property, plant and equipment usually represent some of the largest items on the balance sheet. Aside from property, these assets typically include all machinery used in the manufacturing process as well as storage, transporting equipment and other assets.

As such, when assessing the value of a manufacturing business overall, plant and machinery is often a major consideration, in particular the maintenance and replacement costs. For example, an investor will need to assess whether and for how long the plant and machinery will suit the business’s needs and strategy. If the underpinning technology of the plant and machinery is dated or soon-to-be obsolete an investor will have to consider the amount of capital expenditure required to keep the business competitive and revise the value downwards.

Understanding the asset base is a key consideration for any prospective investor (who ultimately is the person who determines values.) The intangible assets such as contract values and customer relationship, provides a good indication of a business’s prospects and assessment of existing plant and machinery will provide a useful basis for considering future capital expenditure requirements.

Wonga posts £84.5m profit as one million people draw payday loans

3rd September 2013 / / Comments Off on Wonga posts £84.5m profit as one million people draw payday loans

Wonga, the highly controversial payday lender, made a profit of £84.5m last year as the business continued to grow in the UK as well as overseas.

The company, which has been criticised by the Archbishop of Canterbury over the summer, saw profits rise by 35% as customer numbers boomed. They releasing their annual accounts this morning, Wonga said it made a pre-tax profit of £84.5m last year, up from £62.4m in the previous year. Net profit rose 36% to £62.5m.

The increase came on the back of a 68% increase in lending, to £1.2bn. More than one million customers borrowed from Wonga, whose annualised percentage interest rate is above an astonishing 4000%. Turnover rose 67% to £309.3m in the year. In an attempt to deflect some of the negative comments the profits are likely to draw, Wonga highlighted that it paid more than £21m in corporation tax in the UK last year.

In addition to the UK, where it made 3.8m loans last year, its consumer business has expanded in to South Africa, Poland, Spain and Canada. As well as its consumer loans business, Wonga expanded by opening a loans for business arm last year. The company also launched a product for the online retail payments market.

Chairman Robin Klein said: “Wonga’s profitability during 2012 was the result of the large scale of our operations and an unflinching commitment to provide a flexible and convenient service designed around customers.”

British Farming Awards 2013

2nd September 2013 / / Comments Off on British Farming Awards 2013

The Business of Farming 5-6 November 2013

The British Farming Awards celebrates creative thinking, innovative approaches and the relentless hard graft by farmers working across the industry. The awards are a great way to celebrate something that we Brits should be more thankful for, which is of course, British Farming. It’s great to recognise farmers hard efforts, especially with the troubles they now face today. We should all be proud to be British, and farming is a huge part of this.

They reward the extraordinary farmers who have made their business a success through sheer determination, grit and foresight. Whether you have grown your farming business through an innovative approach, re-invented your business, developed a new agricultural input or piece of machinery, have thought-out a new approach to livestock or crop production, or adopted and adapted new research and technology, they want to hear from you.

The Farmers Guardian, Arable Farming and Dairy Farmer pride themselves on understanding its farming readership. They focus on British farmers, understand their needs and discover inspiring stories of people who have changed what they do and how they do it. Everyone knows climate change is happening, the global population is growing, the amount of red tape increasing and the amount of financial support is decreasing. Farmers farm within some of the most frustrating conditions around which is why – now more than ever – we need to keep British farmers farming.

Awards:

  • Arable Innovator of the Year?
  • Beef Innovator of the Year
  • Sheep Innovator of the Year
  • Dairy Innovator of the Year
  • Renewables Innovator of the Year
  • Machinery Innovator of the Year
  • Farm Retail Innovator of the Year
  • New Entrants Award: Against the Odds
  • Family Farming Buisness of the Year

Visit the link to see How to Enter :

Co-op Group reports big banking loss

29th August 2013 / / Comments Off on Co-op Group reports big banking loss

The Co-operative Group has reported heavy losses as a result of a huge write-down of assets at its troubled banking arm.

The group lost £559m in the first half of the year, having written off £496m of bad loans at Co-op Bank. The bad loans relate mostly to Britannia Building Society, which merged with Co-op Bank in 2009. The bank also faces a £1.5bn capital hole in its balance sheet, which regulators say it must fill. Including the write-downs, Co-op Bank alone reported a total loss of £709m. The Co-op Group’s food and other businesses reported profits.

The bad results were widely expected, but highlight the problems being faced by Co-op Group chief executive Euan Sutherland, who took over the role in May this year.

He said the results showed the “well-documented challenges” faced by the bank. “My first few months in the role have been focused on putting in place the recovery plan for the bank,” he said, but warned there were “no quick fixes”.

In June, the Co-op announced it had reached an agreement with the bank regulator, the Prudential Regulation Authority, to plug a £1.5bn capital hole in its balance sheet. It includes a stock market listing, measures to raise money from bondholders and the sale of its insurance business, planned for 2014.

“The underlying issues in the results today are not new,” said Co-op Bank’s chief executive, Niall Booker

.

“We are now clearly focused on improving the capital position of the Bank… [and] at the same time, we have continued to lend, maintaining our focus on supporting our loyal customers, both in retail and through our continued focus on lending to small and medium-sized businesses.”

The capital shortfall came to light during Co-op Bank’s attempts to buy more than 600 bank branches from the partially state-owned Lloyds Banking Group.A deal was initially agreed in 2012, but fell through earlier this year. MPs are currently holding an inquiry into the circumstances of the collapsed deal. Lloyds executives have already claimed they knew about the hole in Co-op’s balance sheet months earlier. Weeks later, rating agency Moody’s downgraded Co-op’s debt to junk status, citing concerns about its capital position.

Facebook could be used to decide if borrowers should get a loan

28th August 2013 / / Comments Off on Facebook could be used to decide if borrowers should get a loan

The Facebook and Twitter accounts of borrowers could be analysed by banks to decide whether they should give people in Britain a loan or mortgage.

Movenbank, an American online bank, already uses social networking sites to decide whether people are a good risk and said they plan to use a similar system when they come to Britain.

Some overseas lenders already use social media to check applicants’ credit worthiness – looking at their Facebook ‘friends’ to see if any are customers or in debt, as well as conversations held online. This information, based on the assumption that people with a good credit history tend to socialise together, is used to decide if someone is a good or bad risk, how much money banks should lend to them, or if they should refuse them entirely.

Movenbank will launch in Britain at the end of this year, subject to approval from the Financial Services Authority (FSA). It uses data from social networking sites such as Facebook, Twitter and Linkedin to determine how influential potential borrowers are, with those who are more influential having a greater chance of getting better loans.

Brett King, the American banking expert and author who founded Movenbank, told the Sunday Times: “The better the score, the better the rates and fees will be. Someone’s reach and influence is taken into account. If someone has 5,000 friends and posts something good or bad about the service they got at a bank, 5,000 people will see that, which is inevitably good for business.”

Other banks also analyse people’s social networks to determine how good a risk they will be – based on the assumption that those who repay their debts are likely to have friends who have a similar attitude to banking.

Manufacturers pin growth hopes on new products and exports

20th August 2013 / / Comments Off on Manufacturers pin growth hopes on new products and exports

Britain’s manufacturers are substantially increasing their strategy for innovation to grow their presence in emerging markets, according to a new survey sponsored by NatWest.

More than two thirds of companies plan increasingly ambitious innovation of new products, technology and research to aid exports to new countries during the next three years, according to a survey conducted by the manufacturers’ organisation EEF.

The move follows a difficult recovery where most businesses focused on improving processes to cut costs and meet the needs of existing customers. More than 70% of the 147 companies questioned for the survey plan to move into new markets on the strength of innovation in products and services, a rise from 54% during the past three years.

Resources and expertise

However, innovation is a difficult process, which requires significant resources and expertise, and selling into new markets has heightened some of the challenges faced by manufacturers, including low cost competitors and ever shorter product life cycles.

Steve Radley, EEF Director of Policy, said: “After a long and slow recovery manufacturers are looking to drive growth through innovation, developing new products and services for new markets. However, the demands of selling into new markets have increased the ‘need for speed’ when it comes to innovation, something that remains a key challenge for manufacturers.”

To help overcome these barriers companies are increasingly collaborating with customers, suppliers and research institutions on innovation activity. The percentage of companies working with research institutions has risen significantly, up from 44% in 2010 to 62% in 2013.

Such collaboration is not limited to within the UK as 51% of companies, including smaller businesses, were working with organisations overseas.

Companies also use government support to help with their innovation. This is well targeted, with schemes such as the Knowledge Transfer Partnership and the new network of Catapult centres helping companies to access expertise and facilities. European funding has also proved an important source of support.

The EEF has urged the government to build on existing work by raising awareness, ensuring stability and keeping access simple. In particular, government should:

  • Ensure stability by announcing a long term commitment to the Technology Strategy Board; maintain the breadth of support mechanisms such as the R&D tax credit
  • Simplify and streamline application processes and consider an ‘innovation active’ qualification to fast-track access to support.
  • Improve access to the new network of Catapult centres by streamlining membership models and, longer term, develop metrics to ensure SME engagement.

Growing confidence

Mark Eastwood, Head of Manufacturing for Business and Commercial Banking at NatWest, said: “Manufacturing plays a vital role in the UK economy and is the backbone of real growth, so it is fantastic to see that confidence is growing across the sector. Investment in innovation and research is key to keeping on top of this global market and manufacturers need stability and certainty as they look to invest in new products and markets.”

Despite the increasing attention being given towards innovation however, the survey also highlights that at 1.1% of GDP Business Expenditure on R&D (BERD) in the UK remains low by international standards. Even after adjustments for structural differences between countries, the UK is 0.4% below the OECD average and further behind the leading countries such as the US, Sweden and Korea.

Why Are Businesses Losing Over £7 billion a Year?

20th August 2013 / / Comments Off on Why Are Businesses Losing Over £7 billion a Year?

UK businesses are losing more than £7 billion a year due to a combination of low bank interest rates and above target inflation, says UHY Hacker Young, the national accountancy group.

Interest rates on business deposits are now at a record low, at just 0.59%. This combined with relatively high inflation (RPI 3.1% in July — compared to a target rate of 2%) mean that business savings are rapidly declining in value.

UHY Hacker Young points out the amount of cash held in business accounts that offer no interest at all has more than doubled since 2009 (see graph below). According to the Bank of England a record £52.9 billion is currently deposited in accounts yielding 0% interest.

Since the credit crunch lending to small businesses has become a priority for the Bank of England. Initiatives such as the Quantitative Easing programme and the Funding for Lending scheme — which are both designed to boost lending — have contributed to the slashing of interest rates.

Many businesses are now having to hold large cash balances because they feel when they need them, they can’t rely on banks to provide overdraft facilities at reasonable rates.

“As the Bank of England continues to focus its attention on reviving lending to small businesses, those with no current need to borrow are being punished for being prudent and keeping cash reserves,” Mark Giddens, Head of Private Client Services at UHY Hacker Young, explained.

“Before the Funding for Lending scheme was introduced, interest rates were competitive in order to attract savers. However, under the Funding for Lending scheme banks are now getting cheap funding from the Bank of England, which means they no longer need to offer generous interest rates to businesses.

“With the recent announcement that interest rates will remain low until unemployment falls below 7% – which economists are predicting won’t be until 2016 and the confirmation that Funding for Lending scheme will be extended until 2015 — businesses will continue to see the value of their savings eroded for some time to come.”

UK Construction Industry at three-year high, PMI survey indicates

19th August 2013 / / Comments Off on UK Construction Industry at three-year high, PMI survey indicates

The UK’s construction industry has reached its highest level of activity since June 2010, a survey has indicated, boosted by a continuing surge in house building.

The Markit/CIPS Construction Purchasing Managers’ Index (PMI) rose to 57.0 in July from 51.0 the month before.

A figure above 50 indicates expansion.

“July’s survey highlights a new wave of optimism across the UK construction sector,” said Markit senior economist Tim Moore.

He added that construction firms were reporting “a pace of expansion in excess of anything seen over the past three years”. The government announced measures in March 2013, such as Help to Buy, to support people looking to buy their first home and to spur construction of new properties.

The construction sector has been an area of weakness in the UK economy.

First estimates for second-quarter GDP show the construction sector grew by 0.9%, but it still remains more than 16.5% lower than it was before the start of the financial crisis in 2008.

Overall GDP growth for the April-to-June period was 0.6%.

Howard Archer, chief European and UK economist for IHS Global Insight, hailed the survey as “more good news for the UK economy, with the construction sector seemingly increasingly shrugging off its long-term problems and now contributing to growth”.

On Thursday, the PMI survey for manufacturing indicated that the sector grew in July at its fastest pace for more than two years.

The reading of 54.6 for last month, from an upwardly revised June figure of 52.9, was the strongest since March 2011 and marked the fourth month in a row of expansion.

PMI surveys are based on data from various private-sector firms, which supply information on factors such as output, new orders, stock levels, employment and prices.

UK businesses urged to capitalise on export advice

19th August 2013 / / Comments Off on UK businesses urged to capitalise on export advice

Britain’s businesses are being urged to take advantage of specialist export advice in light of the fact that 62 per cent of companies in the UK are being held back from exporting by language barriers.

Recent figures released by the British Chamber of Commerce have revealed that a mere five per cent of UK companies speak enough French to do business in the country, while 58 per cent doubt that their product or service is even good enough to market overseas.

As a result, language experts Comtec Translations has urged SMEs to make the most of the sizable network of support available to successfully launch your business internationally.

Sophie Howe, MD, Comtec Translations has stated: “There is an abundance of support available for businesses that need to take the first few steps to exporting. Organisations such as UK Trade & Investment (UKTI) offers introductory services to overseas markets and specialist translation providers can provide support around handling communications material for overseas trade.

“Your local Chamber of Commerce can also provide useful advice and support,” advises Howe, who was recently featured on national radio talking about the challenges the UK faces as an economy to develop the vital language skills businesses need to enter international markets.

Brian Mountford, International Trade Advisor at the UKTI explains the advantages exporting will bring to a business: “On average, companies who export see a 34 per cent increase in productivity in their first year of exporting; they are 11 per cent more likely to survive, and they benefit from operating in a more competitive environment; attracting and providing more opportunities for higher skilled workers.”

Agricultural industries to receive £160m Technology Boost

16th August 2013 / / Comments Off on Agricultural industries to receive £160m Technology Boost

The new government strategy is set to make the UK become a world leader in agricultural science and technology, and will also help the sector meet the challenges of global demand for food, as well as land, water and energy shortages.

Breakthroughs in nutrition, informatics, satellite imaging, remote sensing, meteorology and precision farming mean the agriculture sector is one the world’s fastest growing sectors.

Developed in partnership with industry, the Agricultural Technologies Strategy will ensure that farmers, retailers, cooks and shoppers will be able to share the benefits to be had through these breakthroughs.

Centres for agricultural innovation will receive £90m, while £70m will go to projects that “bridge the gap between the lab and the market”.

The food supply chain, from farming through to catering and retailing, contributes £96bn to the economy and employs 3.8 million people, according to the Department for Business, Innovation and Skills.

It says that currently not enough of Britain’s research is being commercialised, so farmers and food manufacturers are unable to take advantage of gains that new technology might offer. Defra minister for science Lord De Mauley said: “We face a global challenge to feed the rapidly increasing population in a way which is affordable and sustainable.

“We are investing in technologies that will enable British farmers to meet these challenges and take advantage of the growing demand in export markets for British food.”

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