* Britain should not expect rest of world to feed it - NFU
* Local planning issues may stall expansion in food output
* UK farm minister says EU's CAP budget is bound to shrink
By Nigel Hunt
BIRMINGHAM, England, Feb 15 (Reuters) - Britain needs a national food plan that makes production a strategic priority and curbs its increasing reliance on imports, Peter Kendall, president of the National Farmers Union said on Tuesday.
Kendall told the NFU's annual conference that global food prices were at an all-time high and had played a role in major upheavals in North Africa.
He questioned the morality of rich countries such as Britain in allowing their own agriculture production to decline and expecting to be fed by the rest of the world.
"If we continue like this - and with our own population set to grow to over 70 million by 2030 - it won't be long before one in every two meals eaten in this country comes entirely from food produced abroad," he said.
An increase in domestic food production will not happen without local planning consent as well as free and functioning domestic markets, Kendall said.
"A narrow localist agenda could put the brakes on the growth we need -- state of the art polytunnels, critical to the success of our soft fruit industry; high output glasshouses for veg; the latest lower carbon, higher welfare pig, poultry and other livestock units.
"That's why it's absolutely critical the government has food production as one of its strategic priorities in the new national planning framework," he added.
Caroline Spelman, UK farming and environment minister, told the conference that energy and water shortages were driving up food prices.
"Here, many households are feeling the pinch. But in poor countries we've seen the cost of bread can spark riots, " she said, adding world leaders must free up trade.
CAP REFORMS
She called for reforms to the European Union's Common Agricultural Policy (CAP) that help farmers become more market-orientated and reward them for environmental benefits, adding the European Commission's proposal "lacks ambition".
The EU's executive adopted CAP reform plans in November 2010, which will form the basis of legislative proposals due by mid-2011. An EU source has told Reuters they were drafted on the assumption that the budget would remain stable.
Spelman said a cut to the budget was, however, inevitable.
"Let's be realistic. There's bound to be a smaller CAP budget, because it won't be the farming minister deciding this but the finance ministers trying to balance the book," she said.
NFU's Kendall said farmers would like to be less reliant on public support but face challenges with markets that do not work, whether because of unfair competition or because of the imbalance of power in the supply chain.
The NFU has been critical of the way large grocery retailers have taken advantage of their strong bargaining positions with suppliers, and the government has responded with plans for an ombudsman to enforce a new code of practice. (Reporting by Nigel Hunt; Editing by Jane Baird)