What changes have you implemented since taking on the FCC role?
One of the changes we’re making is that we’re not going to raise our heads above the parapet unless we have something to say. But when we do have things to share, we’re going to be louder about it.
We’ve also changed our focus from just red meat to dairy, cereals and, of course, fresh produce. We’ve had a million pounds worth of funding to help the industry.
What work is being done on fresh produce?
We have three streams of activity. Masterclasses, which are helping a handful of companies pioneer techniques and learn from them - we will then share the learnings from the pilots we’ve carried out.
We’ve carried out one so far with Greenvale, a potato producer, on its grading process and there’s no doubt the company will benefit from substantial improvements in efficiency. There are another eight masterclasses available, and if anyone is interested, we’d be very pleased to work with them.
We’re also carrying out value chain analysis, putting an entire supply chain under the microscope. Our experiences in red meat have shown that across the entire chain there was the chance to make up to 20 per cent in cost savings. And that’s value in proft terms to everybody in the chain. Currently we’re looking at two in horticulture, but we intend to do six in total. We’ve also introduced Hortbench [giving companies the chance to benchmark their costs against others in the sector]. We found the most successful companies in the industry were 25 per cent better at managing their costs than the industry average. We’ve set up business improvement groups, provided them with a template and they use that to compare the true cost of production. That has been particularly successful in soft fruit. Some groups are now looking to compare figures internationally.
How do you see the marketplace?
There’s a greater focus on price. People talk about food deflation, and let’s be clear, the real price of food has gone down. Unfortunately that means people feel more risk averse to investing in innovation when they’ve got margins being squeezed, rising costs and deflation.
However we’ve got a polarised market. While for some price will always be an issue, some of the other players need to move their position. There’s an enormous opportunity for the retailers, manufacturers and farmers to do a much better job at the premium end of the market.
What issues do you see affecting the produce sector?
One of the things of great interest is seasonality. We have schizophrenic shoppers. They want things 52 weeks of the year, but many of them recognise that when things come into season they are at their best, although they don’t necessarily know when the seasons are.
But if shoppers couldn’t buy things 52 weeks they’d be disappointed. We need to create a beaujoulais effect around the season - we’ve achieved that very successfully on strawberries with Wimbledon but there is other produce and other foods that lend themselves to that. We can do things like that to draw it to people’s attention. With better communication at the point of sale, we can make more of British produce in season.
Is simply putting British on the product enough anymore?
Provenance alone won’t sell UK foods - taste and freshness are more important. Instead of being hung up on country of origin, it came ninth on the list of consumer drivers, we need to be looking at those above it, like quality, taste, convenience and health.
British can be a tie-breaker at the point of sale - but if you’ve got a better product and you can demonstrate that to your customers and the shopper - then there are those 50 per cent that have indicated they’ll pay a premium, but you have to demonstrate a difference.
Is the sector meeting consumer needs?
I think the industry has a good opportunity - the health message has been received loud and clear. But if you look at growth of sales, it’s about convenience and we need to make sure domestic produce gets a fair crack of the whip
We have a challenge on vegetables, because being honest, if you’re on the hoof, veg just isn’t convenient and we’ve lost a generation in terms of cooking skills.
That having been said, looking around during the summer, the tomato growers and potato growers have done an awesome job in highlighting the right domestic varieties for the right eating and cooking experience.
How are consumer needs changing?
We did some interesting research.People have been less willing to cook and spend time in preperation. However, we’ve seen a dramatic shift from 2004/05 compared with 2001. The number of people only willing to spend 10 minutes cooking was static for the first time in five years while the number of people willing to spend half an hour or more has moved to 50-70 per cent. When you ask them why they say they want to take control of their lives, be sure of provenance of the food, and most importantly eat healthily.
How do you see the emphasis on local foods affecting the industry?
I do see a real focus now on local foods. 70 per cent of UK consumers want to buy local food and 49 per cent would like to buy more.
And that’s largely fresh produce - which is down to the fact there’s a perception that local foods are of a higher quality and fresher.
There’s also a genuine desire, particularly in rural communities to support the community and its producers - it’s not a food miles thing, that comes way down the list of priorities, it’s about freshness, quality and supporting the community.
Are the health messages hitting the spot?
The health messages need to be simple. I think shoppers find the healthy eating thing quite a challenge because they’re bamboozled with messages. People are up for it, but it needs to be very simple. It’s a great opportunity for everyone in the industry.
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