“MORE GOVERNMENT COMMITMENT NEEDED”
With the government admitting that Britain is the most obese nation in Europe, we must encourage greater consumption of fresh produce as part of a healthy lifestyle. DEFRA’s Fruit and Vegetable Task Force identified this key objective, says Fresh Produce Consortium ceo Nigel Jenney. Now, we must ensure the government does not fudge its responsibilities, but maintains its commitment to fresh, not frozen, as the ultimate convenience food.
Pressure remains on the successful School Fruit and Vegetable Scheme, with changes coming for public health delivery in 2013. Having secured a reprieve for the scheme this year, the FPC will continue to lobby for its secure future. At the same time, the government must become more industry aware and be held to its promise to avoid “gold plating” legislation. We will continue to lobby for the removal of unnecessary regulation. I hope for progress in 2011 on the implementation of an Assured Trader status, taking into account high standards and considerable investment by reputable traders.
I will remember 2010 for the Food Standards Agency’s failure to act responsibly and proportionately towards so-called “high risk” products and the morpholine incident.
But looking forward, 2011 should be the year that increasing UK production comes to the top of DEFRA’s agenda, with greater support to help UK growers and the supply chain play their part in delivering UK food security.
I’d like to see more sense in the well-intentioned push for eating in season, which focuses only on home-grown produce. It would be pretty dreary if we had to rely on a limited diet of UK fresh produce to see us through the rest of the winter. Why do we have to feel guilty about enjoying the wonderful array of fresh, seasonal produce available to us from other parts of the world thanks to the efforts of our global industry? Let’s celebrate the wide range of fresh produce that we can enjoy, both home grown and from overseas, and keep in perspective the relatively low carbon footprint of the fresh produce sector.
“THIS YEAR WILL BE A POTENTIAL WATERSHED MOMENT FOR THE FRESH PRODUCE INDUSTRY
All eyes will be on the state of the economy and consumer confidence, says NFU chief horticultural adviser Philip Hudson. But for growers, some of the key factors to influence them in 2011 will be the coalition making good on its promise to strip out unnecessary regulation plus ensuring that the industry can continue to have access to the necessary applied research and development required to remain competitive.
I do think that 2011 has the potential to be a watershed year for the fresh produce industry, not least because this is the year when we’ll begin to see government cuts start to bite, when a number of key aspects of government policy are set to be implemented such as on planning and on the abolition of quangos, and we’ll get a better idea of where the economy is heading. Added to that is the price of oil and the impact that will have on food prices and imports.
I think we’ll see retailers continuing to express their desire to get closer to their British grower suppliers - a good thing and I hope that we’ll see that manifest itself more obviously throughout the next 12 months.
I think that in the right hands, all sectors have got at least some potential. Two categories in which I can see real growth though are in the top- and stonefruit sectors. I am sure that the soft-fruit sector will continue its success but there are some planning issues on the horizon that could potentially cause problems.
The NFU’s resolution would be that the government puts in place the framework that will allow our growers to produce more and meet demand.
“A YEAR FOR VERTICAL INTEGRATION AND MORE ACQUISITIONS”
I believe that supermarkets will continue in their efforts to buy directly from growers around the world, writes David Macaulay, md of Eden. This isn’t new, but I think the effects of the changes will be seen more widely throughout the industry as the likes of Tesco, Sainsbury’s and Morrisons follow the Asda/IPL lead. This will create opportunities as supermarkets will support proactive suppliers and logistics businesses able to provide greater visibility and transparency within the supply chain.
Like everything, the challenge will be with people. Ensuring you have the right people in place with the right support, training and cultural fit might be the difference between profit or loss in 2011.
I think 2011 will be remembered as the year that Eden Search & Select was established and the year England beat New Zealand in the Rugby World Cup final (one slightly more memorable than the other!) On a serious note, I think 2011 might be the year that the industry wants to forget as with the tax increases, consumer confidence and spending will be subdued for the first six months but I think we’ll end the year more positively than we’ll start it.
A prevalent trend will be direct sourcing - it’s happened for a long time, but it’s the new buzzword in the sector so it’s going to get a lot more attention.
The big will get bigger. I think we will see at least two or three major acquisitions over the next 12 months as there continues to be strong interest in buying fresh produce businesses. At the same time, vertical integration will be key as suppliers will be fighting for growers and investing heavily in them in an attempt to show their customers they are farmers too.
I think 2011 will be the year of growth for international logistics providers and independent packing businesses that align themselves to the right supermarket. Oh, and supermarket profits will increase for sure.
Our New Year’s resolution is to challenge the way companies recruit executives into their business and show how they can increase the success rate of their recruitment and therefore the success of their business. At Eden, it’s not just about matching candidates to a job spec - we spend time with line managers and senior teams to understand the culture of the company and define what ‘good’ looks like in your business, your function and your role. Using this method, we’re placing candidates that not only have the right skill set but have the motivations, behaviours and values to fit the company. We believe this method helps create a more productive, profitable and sustainable relationship between companies and their employees.
“CONVENIENCE AND HEALTHY EATING WILL BE KEY DRIVERS FOR STRONG SALES GROWTH IN 2011”
The key factors for fresh produce in 2011 will still be around seasonality and provenance, especially since the ash cloud last year and the heavy snows in December did much to focus the general public on the food supply chain and food security, writes Jan Lloyd, ceo of Covent Garden Market Authority.This has become as important as environmental concerns.
This year, many column inches will be taken up with the Royal wedding in spring and with sport, with England’s performance at cricket and preparations for the Olympics capturing the headlines.However, it is likely that the economy will be sluggish.Foodservice in the cost sector will be hit as the public sector cutbacks start to bite.
The trends for the new year start with extensions of those we have already seen, with interest in growing your own strengthening eating at home, for example. While top restaurants like Danish Noma may advocate foraging and Le Manoir aux Quat’Saisons championing growing your own, most people will continue to source their fruit and vegetables in shops.However, the publicity is helping to keep fresh produce in the media.
The strongest areas for growth in 2011 will be convenience, which will be a key driver alongside concerns about healthy eating. Product developments like micro-greens and sprouting seeds tap into both these trends with the added advantage of looking pretty. There is always an interest in novelty from chefs and I am sure 2011 will see another new berry to join the pineberry and strasberry.
As for my resolution in 2011, on a personal level it would be to eat (even) more fruit and veg, drink less coffee, walk more and take a break at lunchtimes. In terms of what I do at work, it would be to try to find more time to see people from all sectors of the market community - suppliers and customers.Every time I do that I always learn something new.
“SURVIVAL OF THE FITTEST ON THE HIGH STREET”
Inflation, fuel prices, water shortages, very unstable economies and exchange rates as well as a 2.5 per cent increase in VAT can surely mean only one thing - continual price increases, predicts Chris Bavin, founder of The Naked Grocer. The ever-increasing costs that growers and importers are facing can only result in prices going up. This is not necessarily a bad thing as it might put us on a level playing field.
I think the supermarkets will find it increasingly difficult to promote and sell products below their actual worth, which will benefit everybody in the industry. We have to all work towards educating the public to understand the true cost of the product in their shopping basket.
It will be a bloody tough year. I can see 2011 carrying on where it left off in 2010. I think there are going to be a lot of companies that will find this coming year incredibly tough and in a way, the problems we all face might be the reason we survive and grow as an industry. I imagine 2011 will be a year where little or no growth is seen as a success in many businesses. I think it will be very much a case of survival of the fittest, especially on the high streets.
I am hopeful that the public will continue to vote with their feet and explore other options outside of the retail multiples. I think that people have had a taste of what the high streets might look like if the decline of the independent retailer continues and it isn’t good. One of the main trends you will see is people wanting to go back to simpler times and get some good, old-fashioned customer service. I would imagine and certainly hope that we will continue to see the public taking interest in where their food has come from and favouring locally grown and UK produce.
Next year, we are looking to increase our percentage of locally grown produce. Another aspect of the business that we want to continue to increase is the work we do to help educate local school kids about the benefits of eating healthily, learn about where their food comes from and why you should eat seasonally and locally produced fruit and vegetables, as well as the importance of supporting their independent retailers.
We lost a whole generation to the supermarkets and if we don’t do something, we will lose another.
No comments yet