LORD Whitty announced the review while on a visit to Cornwall, where several examples of local procurement operate.

The county council has struck a deal with local food producers to supply 32 primary and secondary schools with food and drinks. All contracts were tendered in line with appropriate legislation and suppliers have searched for as many local producers as possible.

The county believes everyone has won, as pupils get quality fresh food, the local economy gets a boost after foot-and-mouth and the profile of local foods has been raised in the region.

In East Yorkshire, an egg supplier has won the contract to supply the Prison Service in England and Wales.

The company, which employs 25 people, lost out in 2001 but held meetings with the service to discuss the issues raised. It has kept in constant touch, detailing improvements made, and was awarded the contract this year after a site inspection.

All the eggs will be produced in the UK, to the lion mark standard, from hens fed on feed grain grown on the supplier's farm. Waste from the hens is re cycled into fertiliser, which is then used on the farm.

This has been highlighted as an example of the importance of talking between the parties and the benefits which can be achieved.