The Collaboration Journey of theFarming and Food Industry

Hampshire Farming Conference 2011

David Neal-SmithEuropean Food and Farming Partnerships LLP

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

Horizontal and vertical collaboration Horizontal and vertical collaboration

FARMERS

CONSUMERS

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The economy catches a cold?

Thursday, April 20, 2023

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Price of Price of food higher food higher and more and more volatilevolatile

Longer term analysis

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

Feedback loops• Trade protection

• Correlation with oil prices• Speculation

Food prices in perspectiveA century of grain prices

Source: EFFP research

The Great Depression

The Second World War1939 -1945

The Great Grain Robbery

1973

The Perfect Storm2007

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Affordability of food in perspectiveConsumer expenditure/retail food prices

30

40

50

60

70

100

80

90

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 20171987 1989 1991 1993 1995

Index

Negative scenario

Positive scenario

‘Sombre decade’2010 onwards

‘Age of prosperity’1986 – 2007

bStrategic supply trinitySecurity, stability and sustainability

Supply Chain Success – what does it look like?

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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 Co-operative 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

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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

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Sustainability benefits.....

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• 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:

•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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