Joint venture deal for UK food agency

The joint venture will expand FERA’s scientific capability and strengthen its role on food safety research, ensuring that the UK’s response to food and environmental emergencies remains robust, Capita said.

“Capita’s commercial know-how will complement the FERA team’s scientific expertise

Capita chief executive Andy Parker

According to DEFRA, the joint venture will also enable FERA to play a greater role in helping to drive growth in the UK’s £100 billion agri-food industry, while simultaneously unlocking £14.5 million of new investment.

Capita chief executive Andy Parker said: “The excellent science being carried out by staff at FERA has not yet been able to reach its full commercial potential because of obvious limits on investment, recruitment and marketing.

“Capita’s commercial know-how will complement the FERA team’s scientific expertise, helping it to grow the scientific capability it can offer existing and new customers.”

Capita will make an initial payment of £20 million for a 75% stake in the joint venture, with DEFRA maintaining a 25% share in FERA.

Meanwhile, the joint venture will also pave the way for an institute in partnership with Newcastle University.

“This new collaboration would give us a real opportunity to drive forward innovation in areas such as food security and crop protection and help us to maximise the opportunities for our research to impact on agriculture and modern food security challenges,” said Rob Edwards, head of the School of Agriculture, Food and Rural Development at Newcastle University, and director of the new research institute.

However, reports in the Independent suggest that both the Cabinet Office and the National Audit Office have been contacted by companies accusing Capita of using a government contract to “short-change” small firms.

The investigation is ongoing.