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The Collaboration Journey of the Farming and Food Industry Hampshire Farming Conference 2011 David Neal-Smith European Food and Farming Partnerships LLP. Friday, August 29, 2014. Introduction to EFFP The Curry Commission. Started 2004 Reduction in agricultural support and protection
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The Collaboration Journey of theFarming and Food Industry Hampshire Farming Conference 2011 David Neal-Smith European Food and Farming Partnerships LLP Friday, August 29, 2014
Introduction to EFFPThe Curry Commission • Started 2004 • Reduction in agricultural support and protection • Vision of very different food chain structure • Needed farmer involvement • Balance to retailer dominance
CONSUMERS FARMERS Horizontal and vertical collaboration
The economy catches a cold? Enter footer details Friday, August 29, 2014
Longer term analysis • Feedback loops • Trade protection • Correlation with oil prices • Speculation Price of food higher and more volatile • Key demand drivers • Population & income growth • Shifting diets • Commodities for bio-fuels • Key supply drivers • Land availability • Water availability • Agricultural productivity • Climate change • Uncertainties • Russian export ban • Exchange rates Enter footer details
Food prices in perspectiveA century of grain prices The Perfect Storm 2007 The Great Grain Robbery 1973 The Second World War 1939 -1945 The Great Depression Source: EFFP research
Affordability of food in perspectiveConsumer expenditure/retail food prices Negative scenario Positive scenario 100 Index ‘Age of prosperity’ 1986 – 2007 90 80 70 ‘Sombre decade’ 2010 onwards 60 50 40 Enter footer details 30 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
b Strategic supply trinity Security, stability and sustainability Friday, August 29, 2014
Supply Chain Success – what does it look like? Enter footer details
Openfield and DHL – taking efficiency in logistics to a new level....... 11 Enter footer details • Openfield – the largest farmer controlled grain marketing business in the UK • 4 million tonnes of combinable crops -7000 farmers • DHL Supply Chain – leading European logistics company working with EFFP to identify opportunities in agri-food supply chains • Identified potential 20% saving in grain haulage road miles by operating a centralised ‘Control Tower’ for Openfield • Operational from 2008 harvest
Arable growers – valuable long term collaboration with food manufacturers Potato producers collaborate to create dedicated crisping potato supply chain for United Biscuits 12 Enter footer details English Mustard Growers Co-operative working with Unilever to secure locally grown mustard for Colman’s
New supply chains helps sustainability for the hills..... Swaledale lambs from seven hill farmers providing seasonal lamb to ASDA 13 Enter footer details ‘National Trust’ branded beef into Booths Yorkshire and Lancashire supermarket chain
Sustainability benefits..... 14 Enter footer details • Improved viability for hill farmers and farming • Environmental benefits through upland management with grazing livestock • Brand positioning opportunity for retailers whilst helping the agricultural industry
Large scale cooperative grain processing and storage leading to innovative marketing opportunities.... 15 Enter footer details • Started in 1983 by 60 Cambridgeshire farmers who built 12,000 tonne store at Linton • Developed to 150,000 tonnes by 2005 with 300 members • New store constructed at Wilbraham, opened in 2009 increasing processing and storage to 300,000 tonnes • £20m invested including grant support through RDPE and earlier schemes Friday, August 29, 2014
Camgrain now supply all Sainsbury’s in store bakeries.... 16 Enter footer details • An innovative new supply chain with Sainsbury’s, providing 60,000 tonnes of regionally sourced milling wheat to 360 in store bakeries. Benefits of this partnership: • Long term premium market for Camgrain farmers • Platform to drive efficiencies within the supply chain • A sustainable source of supply to Sainsburys • A unique marketing proposition for Sainsburys; and • Ability to forward plan
Key success factors…. 17 Enter footer details • Farmer investment • Scale & service achieved through a collaborative approach • Clear strategy – driven by the market needs and opportunities • Focus on the customer and the benefits that can be achieved • Resolving conflict! • Price premium to the farmer in return for those benefits to the customer