Food producers and suppliers have been urged to capitalise on the growing “local food goldmine”, following publication of a new feasibility study which puts food hubs and markets at the head of its agenda.

The study, produced by Bidwells Agribusiness on behalf of the South East Food Group Partnership, establishes the growing demand for regional food at both a consumer and buyer level, and the difficulties that impact on suppliers and customers undertaking more business together.

According to Bidwells’ research, two in three London consumers currently buys or would like to buy more local food. The report also concludes that there is not currently enough supply of local beef, lamb, fish, fruit and vegetables to satisfy demand, implying there are significant opportunities available to the region’s suppliers and producers, with similar scenarios likely in other UK conurbations.

Valuing the London demand at £9.3 billion annually, the Bidwells study suggests a number of ways in which producers and suppliers could capitalise on the growing consumer appetite for local food and regional food. The report also demonstrates how this might then stimulate more long-term support for the British food sector.

The report makes two main recommendations, firstly to develop a food hub to support the food sector in the regions around London in the South East and East of England which incorporates a virtual business-to-business e-marketplace to enable producers, suppliers, buyers and retailers to engage more directly.

Secondly, the study calls for the development of 10-20 street markets across the Greater London area to act as “local food beacons” at key locations, enabling markets to play a greater role in providing fresh, regional food at local levels.

Richard Walters, head of food marketing at Bidwells, said: “The shift away from organic has increased the focus on regional and local food, and people now want to know their food is the freshest it can be and know where it comes from. In addition, the challenge of the recession means that people want to support their local community as best they can, from buying local food, to sustaining local shops."

Henriette Reinders, managing director for South East Food Group Ltd said: “The report gives us a detailed analysis of the demand for local, regional food in the capital. This will assist us in focusing our efforts in linking suppliers in our region with the buyers in the capital. It also strengthens our work with regards the wholesale market, New Covent Garden Market, where we try to improve the take-up of regional produce as well as the initiatives we undertake with the fishing industry to get more local species into the UK supply chain. It is a key priority for us now to realise the virtual hub idea and work with street markets to offer more regional food."