In early March, the NFU took the conversation of sustainability and collaborative policy making to hospitality leaders at the Planet Peach conference.
Planet Peach is the leading conference in sustainable hospitality, and brings together business and sustainability leaders from across the out-of-home eating market to share best-practice, success stories and the latest thinking – and to set the agenda for the next phase of sustainable action, innovation and collaboration.
Jack Watts, the NFU’s sustainability group lead, joined the CEO of UK Hospitality Kate Nicholls on stage to discuss the role of policy making in driving sustainable supply chains, alongside the role of supply chain businesses in supporting producers to deliver on shared ambitions.
An important market
The NFU was pleased to be on stage and share the views of its members, especially as sustainability in hospitality is becoming an ever more important space for the market, both as part of reducing the environmental impact of supply chains as well as a way of showing a point of difference compared to competitors.
The out-of-home sector often sets the latest in taste, trends and flavours, and makes up 45% of household consumption expenditure. Engaging and collaborating with this market, which had a consumer spend of £48.2 billion last year, is a priority for the NFU. During the discussion the NFU wanted to highlight how effective policy making can support producers on their sustainability journey.
However, both Kate and Jack first pointed out that sustainability, by definition, must include economic sustainability, so government must address business viability and profitability throughout the hospitality supply chain, from farm to fork.
This is particularly important as both short and mid-term farm confidence levels are at record lows. But we are not alone with that, as Britain’s hospitality business confidence also continues to fall. Data from leading providers CGA by NIQ released in early 2025 showed that only a third (33%) of leaders felt confident about prospects for their business during the next 12 months. Optimism is now at its lowest point since late 2022, and its second lowest since the Covid lockdowns of 2020.
Additionally, profitability has been eroded by fast-rising labour costs.
The discussion then shifted to the role of government in supporting businesses in their sustainability ambitions, particularly the range of tools policy makers must look at to support producers and supply chains.
A key theme from the event was that sustainability policy must not take a singular, simplistic focus on carbon reduction only.
Governments have a role in supporting a range of policies, from effective land management schemes that support biodiversity and water quality to planning policy that supports sustainable investment for on-farm renewable energy provision, and finally to carbon tools and calculators on farm.
Producers need the voice of the supply chain and hospitality to influence decision makers on the need for UK production capacity, productivity, and farm resilience; especially when the government is looking at a Land Use Framework and food strategy.
‘Regenerative’ farming
With key hospitality leaders in the room, the NFU also wanted to start unpacking the conversation around regenerative and conventional farming.
This is because regenerative farming has become a huge focus within the supply chain of the hospitality sector. For the NFU, however, the conversation isn’t as simplistic as two rigid systems that provide different value. So, a key message to get across to the hospitality sector is that, ultimately, for many ‘conventional’ producers, regenerative practices are integrated within their systems already.
This conversation around what our producers are delivering for the environment will be a core theme for us in 2025.
The Food Business Unit will be working to showcase all the value that British producers bring to the supply chain, and the need for collaboration when further outcomes are wanted.
Producers should be fairly rewarded for sustainability outcomes delivered alongside food production and we look forward to working closely with the hospitality sector to achieve this.
