Food is classed by the UK government as one of 13 Critical National Infrastructures – whereby its disruption could severely affect essential services, national security or the functioning of the state.

This means that the food supply chain is currently under close scrutiny: from the government’s UK Food Security Report in 2024, which documented vulnerabilities in resilience and persistent stresses on the food system at multiple levels, to a forthcoming study from the National Audit Office due out this summer, which will examine whether Defra is taking effective action to ensure that the UK food supply chain, and domestic food production, is resilient enough.

What are the current challenges in the food supply chain?

Right now, the food supply chain – and, in turn, the UK’s food security – is highly vulnerable. Challenges include just-in-time production, labour shortages, rising energy costs, pricing pressures, IT sabotage, biodiversity loss and ever-changing welfare standards. Some of these challenges can be mitigated against but others – like climate change and overseas influence – are much harder to parry. .

A more demanding environment for farmers and growers

At the same time, supply chains are being asked to do more than they’ve ever done before. It’s no longer just about supplying commodity A to broker B; for good reason, that commodity now has to go through a carbon audit, or a veterinary inspection, or an audit on nitrogen usage, for example.

The data being captured from farms is then being used to add value at the end of the supply chain – because the product is marketed as low-carbon, or regenerative, or sustainable – but typically that extra margin hasn’t found its way back to the producer. So, farmers and growers are gathering more data points, spending more time, and investing in software or sampling structures to allow them access to supply chain contracts, but not earning the value from that data.

The importance of sharing value

However, the food production industry is currently at an important point of shift and supermarkets are starting to realise that the value needs to be shared. Contracts are now being shaped to help finance that transition for suppliers, by actively paying for the use of herbal leys in a dairy unit or the use of intelligent irrigation in the fresh produce sector, for example.

We are seeing evidence of 57 directly linked contracts where there is a tangible benefit to the producer financially, and where there are trackable data metrics being used to validate uplift in soil health, water quality and biodiversity. This makes the farming business more resilient, and more resilient suppliers equal a more stable food supply chain.

Closer collaboration in the supply chain

Economic, environmental and geopolitical pressures are aligning the interests of producers and buyers, making closer collaboration a source of shared resilience and value.

For farmers, stronger relationships will improve market certainty, as well as access to expertise and funding to support changes in land management practices. And for processors, manufacturers and retailers, direct engagement with producers is essential to meet sustainability goals, manage risk and secure long-term supply. Ultimately, robust relationships are in the interests of everyone from farm to fork.

For more on the food supply chain and other rural news read the latest edition of Savills Aspects of Land and our new spotlight on food beyond today.

Further information

Contact Hamish Logan or Ed Horton