EUC Report: Agriculture

Lord Bilimoria Excerpts

Monday 6th February 2012 Grand Committee

[Lord Bilimoria]

My Lords, there are some out there who would raise their eyebrows at the idea of a report about innovation in agriculture. Far too many people, in both business and politics, consider agriculture to be an antiquated, backward industry with no place in the 21st century economy, to which the noble Lord, Lord Carter of Coles, alluded in his opening speech. This view is, of course, completely wrong. I am delighted that the EU Committee has tackled the subject of innovation in agriculture and produced a report that makes the case for a reinvigorated, stronger British farming industry.

My business is of course beer. I am sure that many noble Lords know that the most important ingredient in any beer is barley. I can proudly say that 100 per cent of the barley used in Cobra beer comes from Britain. The second most important ingredient is water. Needless to say, the water for the beer that we produce in Britain is 100 per cent British, too—there is no Evian in our beer. As the noble Baroness, Lady Parminter, told us, the food and drink industry consumes two-thirds of what our farmers grow in the UK.

In a recent debate on the creative industries, I mentioned that I was brought up throughout my childhood being told that I was not creative because I was useless at art. I have realised that being creative and innovative are two crucial skills for business. That applies whatever industry you speak of, including agriculture. Over the past three decades, Britain has evolved into one of the most open economies in the world. That has been wonderful and one of our great competitive advantages. However, one of the downsides of that evolution is that we have an economy based far too heavily on services, where manufacturing makes up barely 13 per cent of our GDP, and agriculture barely 1 per cent.

We constantly complain about too much power being exerted on us by Europe and Brussels. The extreme example, the industry that is most crushingly regulated by Brussels is agriculture; and the single area of expenditure in the EU budget that is bigger than all others and makes up well over 40 per cent of the budget is agriculture. As has been pointed out so many times in this debate, of that, the budget for research is a mere €2 billion for five years. It is good news that it will be doubled, but surely we all agree that that is a drop in the ocean. Do the Government agree that more should be invested by the EU and the UK in R&D in agriculture and, if so, what are the Government going to do about it?

There is no question that we have to innovate to cope not only with the increasing global population, as has been pointed out, but the rise of India and China, whose consumption of food, especially meat and dairy products, will rise exponentially as they grow wealthier. We know that Malthusian theories have been proved wrong. In the so-called green revolution of the 1960s in India, a country which for centuries had catastrophic food shortages, innovative farming methods were used to increase crop yields and almost completely eliminated famines forever. One of the key catalysts of the green revolution was widespread adoption of genetically modified crops.

Fast forward to today, and we see that some of our European partners are seemingly blind to those innovations and insist on sticking to a backward precautionary approach. Rather than promoting innovation in GM, the current practice of the EU forces GM to prove that it is 100 per cent safe beyond any reasonable doubt before it can be used. I fully agree that caution must be a priority, but one must look at the scientific evidence and weigh up the risks and benefits. In a court of law, you are innocent until proven guilty. In the case of GM in Europe, the perception is that it is guilty until proven innocent. Are the Government for promoting research and use of GM crops?

Global food security is a serious issue, and I have personally seen the havoc created by food inflation, which unfortunately has existed regularly in India over the past few years. The European Union has been fantastic in promoting trade and peace between our member nations, but there is no doubt that one of its worst manifestations has been the CAP, which has been unbalanced and unfair within the EU, with countries such as France benefiting disproportionately compared to countries such as Britain.

Furthermore, although the EU has been one of the best manifestations of globalisation, the CAP has made us in the European Union hypocrites. We preach free trade to the world and yet, through the CAP, we practise protectionism. We subsidise our cows in the European Union by $2 a day, when we know that there are 1 billion people globally living on less than $1 a day. The European Union is the second-largest overall agricultural producer in the world after China, but our output would increase so much more if we could be more productive. That means investing in innovation and research and encouraging our youth to enter agriculture

On that note, I congratulate my noble friend Lord Curry of Kirkharle on his excellent and authoritative maiden speech. He informed us that Kirkharle is where Capability Brown hails from. Some of us may have noticed that there has been a resurgence and renaissance in Capability Brown gardens in Britain today. I hope that there will also be a renaissance in agriculture in Britain today.

Of the 7,000 plant species that have been used for food in the world, just 150 have been commercialised on a large scale and only three—wheat, maize and rice—supply half of the world's daily food. There is so much potential here. The noble Lord, Lord Plumb, spoke of young people. Just look at how the world has changed. Now, young people aspire to be techies and geeks, thanks to the internet revolution. In the same way, it is great to see the new policy encouraging the youth in Europe to go into farming. However, they have a lot of competition. Last month, I was speaking at an annual conference in India—the Pravasi Bharatiya Divas, the Indian Government’s conference for the 30 million-strong global Indian diaspora—to an audience of 700 members of India’s youth, including university students, senior schoolchildren and medical college students, and I was utterly inspired by their enthusiasm, brightness and aspirational attitude. This is India’s future. This is the future with which we in Britain and Europe will have to compete.

When people say that British manufacturing is dead, I and others like me in the manufacturing sector defiantly say that it is definitely not dead, and that we have world-class, cutting-edge, high-end advanced engineering, be it in aerospace, automobiles or pharmaceuticals. This enables us to partner on an added-value basis with the growing economies of the East. We must ramp up investment and innovation drastically if we are to do the same with agricultural innovation. In fact, just yesterday the Chinese Premier, Wen Jiabao, said:

“Now that Europe is facing a [sovereign] debt crisis, we must consider our relations with Europe strategically … On the one hand, our largest export market is Europe. On the other hand, Europe is our biggest source for importing technology. From this perspective, helping to stabilise the European market is actually also helping ourselves. We must let all parts of the society understand this”.

The noble Earl, Lord Caithness, pointed to a lack of co-ordination, and the noble Baroness, Lady Sharp, also spoke of this. Britain and Europe should be at the cutting edge of innovation and research, exchanging ideas between our 27 nations, making Europe the most fertile hotbed of agriculture creativity. We have the diversity of all our nations, and in Britain we have the best higher education institutions in the world, along with the United States. In spite of higher education funding having been cut—and I am sorry to say I hugely disagree with this; I think it was very short-sighted of the Government—and in spite of our R&D expenditure being a fraction of that of a country such as the United States, we continue to punch above our weight. As the noble Baroness, Lady Parminter, said, protecting the science budget is not sufficient. Do the Government, on reflection, agree with this?

Last year, I was privileged to write the foreword for Big Ideas for the Future, a book by Research Councils UK and Universities UK illustrating about 200 world-beating, world-changing innovations in several sectors from universities throughout the UK, including in the area of food security. In fact, I quoted from this book earlier, referring to the 7,000 varieties of food-bearing plants, of which just a fraction have been commercialised; and the book points out some examples. Reaping the Benefits by the Royal Society in 2009 predicted that, as we have heard, the global demand for food will double by 2050. A great deal of innovation is necessary to tackle this challenge. The report refers to a “virtual root” which has been developed by a group of researchers at the University of Nottingham, supported by the BBSRC, as a predictive model to simulate root growth accurately. Results from the model are already being translated for crops such as barley, which of course is of great interest to me. This could result in improved varieties being available to farmers in 10 years’ time. Another example is that at the University of Birmingham researchers, also supported by the BBSRC, have been identifying key genes that control meiotic recombination, a process that allows genetic modification to occur. Once identified, this information will be an important tool for plant breeders, enabling them to breed improved plant varieties in a shorter period of time. Just imagine the effect of that.

This sort of research is going on all over the country and, indeed, across the European Union. However, in order to face the future we need to invest in it multifold. The developing world, led by India and China, needs innovation in order to feed its growing populations. The question is whether Britain and other EU members will be leading partners in this process or whether we will let over-regulation, politics and underinvestment keep us on the sidelines.

In conclusion, I should again like to quote, because it is so important, the excellent report of which we are taking note. The introduction to Chapter 6 cites Georg Häusler, Head of Cabinet, DG Agriculture at the European Commission, who asks this question:

“Does Europe say that it can provide food for 500 million rich Europeans and import what we do not have, or does it play a role in feeding 9 billion people, including 1 billion people in China and India”,

many of whom,

“are starting to eat meat?”.

It is indeed a pressing question, and one that only the EU itself can answer. I am hopeful that we will choose the latter path but I am worried that the EU may be wandering the wrong way.

I shall end where the report begins:

“Regulation should help, not hinder. Politicians … must not be afraid of new properly tested technologies … Benefits and risks must be clearly articulated, recognising that too precautionary an approach may pose risks to global food security”.