The Collaboration Journey of the
Farming and Food Industry
Hampshire Farming Conference 2011
David Neal-Smith
European Food and Farming Partnerships LLP
Introduction to EFFP
The Curry Commission
 Started 2004
 Reduction in agricultural support and
protection
 Vision of very different food chain structure
- Needed farmer involvement
- Balance to retailer dominance
Horizontal and vertical collaboration
CONSUMERS
FARMERS
The economy catches a cold?
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Monday, March 14, 2016
Longer term analysis
Feedback loops
• Trade protection
• Correlation with oil prices
• Speculation
Key demand drivers
• Population & income growth
• Shifting diets
• Commodities for bio-fuels
Price of
food higher
and more
volatile
Uncertainties
• Russian export ban
• Exchange rates
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Key supply drivers
• Land availability
•Water availability
• Agricultural productivity
•Climate change
Food prices in perspective
A century of grain prices
The Great Grain
Robbery
1973
The Second
World War
1939 -1945
The Great
Depression
Source: EFFP research
The
Perfect
Storm
2007
Affordability of food in perspective
Consumer expenditure/retail food prices
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Index
Negative
scenario
Positive
scenario
‘Age of prosperity’
1986 – 2007
90
80
70
‘Sombre decade’
2010 onwards
60
50
40
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30
1987
1989 1991 1993 1995 1997 1999 2001
2003 2005 2007 2009 2011 2013 2015 2017
Strategic
supply trinity
b
Security, stability and sustainability
Supply Chain Success – what does it look like?
Openfield and DHL – taking efficiency in
logistics to a new level.......
• 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
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Arable growers – valuable long term
collaboration with food manufacturers
English Mustard Growers Cooperative working with Unilever to
secure locally grown mustard for
Colman’s
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Potato producers collaborate to
create dedicated crisping potato
supply chain for United Biscuits
New supply chains helps sustainability for the
hills.....
‘National Trust’ branded beef into
Booths Yorkshire and Lancashire
supermarket chain
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Swaledale lambs from seven hill
farmers providing seasonal lamb to
ASDA
Sustainability benefits.....
• 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
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Large scale cooperative grain processing and storage
leading to innovative marketing opportunities....
•
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
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Camgrain now supply all Sainsbury’s in store bakeries....
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:
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•
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
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Key success factors….
 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
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