Birmingham Wholesale Markets – a local food hub for public procurement?

1. Birmingham Wholesale Markets – a local food hub for public procurement? Localise West Midlands March 2009 Regional Food Procurement Workstream 9th Oct 09

2. Why BWM for PP • Mapping wholesalers – 21 out of 29 BWM wholesalers willing and able • Place of wholesalers in local supply chain • ‘Hub’ location & structure – model for local food supply into major urban area • public procurement: critical mass and whole system efficiency of public spend • Markets move Regional Food Procurement Workstream 9th Oct 09

3. LWM’s brief • Identify extent of current BWM/public sector relationships • Current BWM sourcing and capabilities • Public sector supply chains & requirements • Good practice - other wholesale markets • Recommendations Regional Food Procurement Workstream 9th Oct 09

4. Findings – wholesalers 1 • Huge diversity of types of wholesaler • (Perceived?) lack of local produce availability; agents’ existing relationships • 3 F&V wholesalers with significant local produce focus • Lack of local produce demand • Local produce often Class 2: less profit margin Regional Food Procurement Workstream 9th Oct 09

5. Findings - general • Role as second tier suppliers to PS – slow invoicing, ‘small drops’ etc • PS’s first tier suppliers sourcing directly from growers (no info on proportions) • Cost: paperwork, transport & price fluctuation issues. Seasonality link • Best practice Manchester & London – lessons learnt Regional Food Procurement Workstream 9th Oct 09

6. Findings - PS • Difficult to access info on PS requirements & arrangements… • Centralised supply chains - policy conflicts (exploiting combined buying power vs local sourcing) • inflexible product specifications • Local sourcing policies and guidance not translated into actual demand Regional Food Procurement Workstream 9th Oct 09

7. Overcoming barriers- Public Sector • Raise PS demand for local produce - collect local produce data; set targets; DEFRA model clauses • Flexibilities: processing, packaging, seasonality/glut and class - affordable local produce - BWM collaboration & flexibility Regional Food Procurement Workstream 9th Oct 09

8. Overcoming barriers – supply end • Distribution –to & from (EFFP, HEFF) • Accreditation info • Tendering process training • Internet (access & websites) • Fresh produce CO2 emissions measuring tool (Covent Garden) Regional Food Procurement Workstream 9th Oct 09

9. Options for Next Steps • London, Manchester, B’ham workshop • Pilots -     Meet the Buyer events -     production agreements -     utilising Class 2 – processed or otherwise • distribution offer • urban freight consolidation centre link? Regional Food Procurement Workstream 9th Oct 09

10. Next steps 2 • Capitalise on markets’ move; provide facilities for new trading models • Birmingham sustainable procurement compact • Focus on increasing market for producers - regardless of PS custom • Urban hub model for local produce Regional Food Procurement Workstream 9th Oct 09

11. Localise West Midlands Local economic solutions for sustainability www.localisewestmidlands.org.uk0121 685 1155info@localisewestmidlands.org.uk Regional Food Procurement Workstream 9th Oct 09