Fresh pledges for 2007

ADRIAN BARLOW, CHIEF EXECUTIVE, ENGLISH APPLES & PEARS

2006 saw a turnaround in the fortunes of the English top-fruit industry and we are working to ensure that this will continue into 2007. At the beginning of 2006 there was much depression throughout the industry because of poor returns and inadequate sales. Prospects for the remainder of the season were bad. Most growers in both Europe and the southern hemisphere made huge losses with many being forced out of business.

However, the market strengthened enormously during our summer, principally as a result of importing countries limiting supplies to match demand. There was no southern hemisphere overhang at the start of the European season. Returns improved considerably and there is much greater optimism about the future. English production was sold more quickly than it has for many years.

The growing concerns about global warming and the need to reduce carbon emissions is another factor that gained momentum throughout the year. This is increasing the demand for local supplies, a trend which many believe is set to become even stronger.

Looking forward to 2007, it is important for producers throughout the world that the damage caused by oversupply is not forgotten and that all suppliers limit their volumes to avoid exceeding market demand. Also, greater production is required from British growers if the increased demand for local supplies is to be met.

However, we need to produce the varieties with the attributes demanded by today’s and, more importantly, tomorrow’s consumers. The choice of sites that will ensure high-quality production is vital. More English Gala and Braeburn are needed, certainly, but also an increase in trials of newer varieties and planting those that demonstrate good orchard and market performances. One hopes that Jazz, Kanzi and Cameo, among other new varieties, will be highly profitable for English growers. This continuing investment in new orchards needs to be accompanied by investment in modern high-performing cold stores as well as packhouses.

Many retailers have made huge efforts this season to sell English apples as successfully as possible. A considerable amount of liaison has taken place between customers and their suppliers and this close working relationship needs to be developed even further during 2007 so that all parties are planning jointly for the future with real commitment to each other. The achievement of prices that provide adequate returns is, of course, of paramount importance for the future of the English industry. However, growers must continue to improve their efficiencies, particularly in the areas of improved business management and crop forecasting. Marketing companies must insist on maintaining quality standards and working together to avoid actions that are detrimental to the rest of the industry.

Finally, government: greater recognition of the importance of the industry, continuing support through initiatives to increase consumption, actions to lessen the costs (time and money) of regulation and greater help from quasi-government agencies. May 2007 bring the industry much happiness and prosperity.

GUY MORETON, DIRECTOR, MOREPEOPLE

Wow, what a year! Where has the time gone? It was only when I was asked for my thoughts on 2006 and my goals for 2007 that I had time to actually sit back, reflect on what we had and hadn’t achieved last year and more importantly cogitate on my own and my company’s objectives for next year.

Last year saw continued growth in both our recruitment and learning and development businesses. We grew not only in terms of income but also physically with the addition of three new members to our team, following the appointments of Matthew Cook, Kelly Pottle and Helen Brent.

The end of 2006 also saw the arrival of Peter Durose, the former fresh produce category director of Tesco, as associate director of our director solutions business.

Peter’s main brief is to further develop our specific senior director recruitment services for existing and future clients, as well as helping us expand our relationships with the retailers with regards to recruitment and our learning and development initiatives.

Last year also saw the launch of an exciting new “food excellence” initiative that we have been developing with one of the major multiples and intend to roll out more extensively during 2007 - watch this space for more announcements on this in the near future.

With regards to the industry in general, the sector continues to be very competitive and with further consolidation expected I can’t see much change on the horizon for 2007. However, I do feel that we are starting to see the emergence of lots of entrepreneurial ideas and initiatives springing up from both existing and new players in the fresh produce and horticultural market. Many of these are targeted at exploiting alternative distribution channels but may well be capable of re-energising things on a broader front in the near future.

In terms of people, the autumn saw the introduction of the age discrimination laws. Many may see this as yet more red tape that makes employing and managing staff more time consuming, more complicated and, consequently, less efficient. However, with a sector as competitive as ours, where adaptability and ability to do the job has always come first, this should not really be something for many employers to be too concerned about.

Indeed, attracting people in the first place continues to be the priority - not how old they are. One of the more positive trends of late, that I hope will continue into 2007, is the increase in the number of clients who are starting to look for a broader range of abilities and character traits in new recruits rather than just the number of years on their CV that they have been selling tomatoes, lettuces, apples, etc.

For too long the sector has been a little bit parochial with regards to the recruitment of new people. Contacts and knowledge are important but these can be acquired; innate talent and core competences are a little harder to come by. Current consumer trends give our industry massive potential with government initiatives to promote more healthy eating, numerous TV chefs extolling the virtues of ‘fresh and local’ and an ever-increasing awareness and interest among the general public in fresh produce. If we are going to deliver on this potential then we will to need to encourage ‘new’ blood to enter the industry - people with flair, imagination, aptitude, new skills and different experiences.

I wish you all a very prosperous and happy 2007.

MARTIN DE LA FUENTE, BUYER, AND SHAUN DOHERTY, TECHNICAL MANAGER FOR FRUIT, TESCO

We are proud of the work we did withour English apple growers in 2006. Tescoput English apples on TV,revitalised a number of old English varieties through our Heritage apple pack, improved our local sourcing of Gala andshowcased some new English varieties - and our effort was reflected in a 60 per cent sales increase.

The idea of local sourcing came to the fore across Tesco stores where in-store hanging boards and pictures on product bags helped to introduce the consumer to the grower and think about the provenance of the products in their shopping baskets.

But Tesco has always made sure that all the shelves are stocked with produce from the very best growers from both home and abroad and our customers have responded well to the produce on offer.

A renewed focus on individual fresh produce lines across Tesco stores throughout 2006 helped us to improve our offering to the customer. The citrus range was cut down quite dramatically in 2006 in order to take out duplication and make the section easier for the customer to understand. The Disney Kids citrus lines had a fantastic reception and, in order to continue handling citrus successfully in a very mature market, Tesco has re-engaged with its citrus growers, particularly in Spain, Israel and Turkey. A complete overhaul of Tesco pear lines, where we put more variety in front of more people for more of the season, is paying dividends. The Perfectly Ripe range of stonefruit proved particularly popular across UK stores and the Finest range saw the inclusion of better products and improved provenance.

The biggesttask for 2007 is sustaining momentum. The top-fruit industry will face a real challenge to build on this year’s great English apple season. But our target of doubling English apple and pear sales by the end of 2007 is well within our sights.

The trade needs tobring traditionally upmarket products into the mainstream without incurring waste - many of us can remember when avocadosand kiwis were first introduced as upmarket exotic lines and now they areon many weekly shopping lists.

Our aim to put moreripe-and-ready-to-eat product in front of customers will be a big test for growers, packers and our own supply chain. A big task for 2007 will be to engage growers and packers in every step of the planning and execution of our activities. We spent much of 2006 re-engaging with some of our suppliers and, in particular, re-connecting with our key growers around the world - and we are really pleased with the dialogue we have opened up with our growers.

Tesco has a simple aim to improve quality, value and range for customers. And we know that our suppliers and growers hold the key to success.

ANTHONY LEVY, CHAIRMAN, EAT IN COLOUR BOARD

2007 is going to be an exciting year for Eat in Colour. Over the past three months we have been planning and preparing for the campaign which will launch in January. We expect to get national media coverage for the first of our PR-led themes with both national press and radio interested. In early January we will also be launching the website which we hope consumers will find useful and stimulating.

The key message behind the campaign is that eating more fruit and vegetables is a pleasure and that adding colour to our shopping trolleys and to our families’ plates adds colour to our lives. We will also be seeking to overcome some of the commonly but wrongly held beliefs that fruit and vegetables are not convenient, easy to prepare and low cost.

During 2007, there will be several major PR-led stories to be covered in regional and national media and we will also be launching a “roadshow” creating some fun aimed at children and families.

The campaign has been fortunate to be supported by a wide range of people in the industry but in 2007 I want to make sure that far more companies get involved so that we can make an even bigger impact on future sales in the UK.

Personally, as someone who has come from outside the industry, I have been very struck by the welcome that everyone gives and I look forward to meeting and listening to many more people in the industry in 2007. However, Eat in Colour is about consumers and, like many, in 2007 my New Year’s resolution is to increase the variety and amount of fruit and vegetables that I eat on a daily basis. Not only will that be good for me and my family’s health, but I know that it will be a delight to the palate and for my eyes.

Have a colourful 2007.

LAURENCE OLINS, CHAIRMAN, BRITISH SUMMER FRUITS

The debate over polytunnels reared its head at the end of 2006 and, looking forward to 2007, there are concerns that the controversy will disrupt the growth of the UK soft-fruit industry.

The judgment by the High Court on December 15 that upheld Waverley Borough Council’s Enforcement Notice for the removal of temporary Spanish polytunnel structures at Tuesley Farm, Milford, Surrey, is of great concern to the members of British Summer Fruits. The Hall Hunter Partnership, which farms at the site, argued that Spanish polytunnels, being temporary structures and used for horticultural purposes, do not require planning permission. Additionally, it argued that the Planning Inspector should have granted planning permission. But Justice Sullivan rejected all grounds for the challenge, insisting that planning permission for Spanish polytunnels at Tuesley was necessary.

Although, as it stands, the ruling is a set-back for soft-fruit growing at Tuesley Farm in its current form, there is potential that it could affect the future growth and success of the UK soft-fruit industry; there is a concern that local authorities may be influenced by this decision.

Furthermore, if UK growers are unable to meet the increasing consumer demand for berries, imported fruit will appear on supermarket shelves during our summer season - the consumer appetite for berries is not going to suddenly go away. Not only would this have a negative impact on one of the UK’s most successful and self-sufficient areas of agriculture - an industry which over the long term is profitable and growing and receives no price support subsidies from the EU or DEFRA - it would also have a negative impact on the environment.

More than £204 million worth of British berries were sold through UK supermarkets this year. This represents an overall increase of 6.8 per cent to 53,000 tonnes of fruit, despite 2006 being an extremely challenging year for growers. Given the weather was against them pretty much all year, the sales figures are encouraging and demonstrate the ever-increasing consumer demand.

Demand for home-grown berries has been growing for the past 12 years, and now outstrips supply for much of the year. This rise has largely been attributable to the high quality of the berries and our sustained promotional campaign seeking to raise awareness of the health and nutritional benefits the fruits.

The polytunnel issue is not something that is going to disappear overnight, but the public need to understand that they are necessary for our industry to survive. This was clearly accepted by Justice Sullivan and the Planning Inspector. The consumer also needs to understand the positive benefits of polytunnel use, for example that polytunnels reduce the use of herbicides and pesticides by up to 50 per cent and provide an environment conducive to the use of natural pest control, and in fact cover a mere 0.01 per cent of UK agricultural land. In addition, technical developments are underway to find ways to minimise the visual impact of polytunnels.

British Summer Fruit growers are encouraged to abide by the NFU/BSF code of practice for the use of polytunnels in the production of soft fruit, in order to keep neighbourly disputes to a minimum.

DR IAN FERGUSON, CHIEF SCIENTIST, HORTRESEARCH, NEW ZEALAND

Last year proved particularly rewarding for HortResearch. Worldwide interest in our new fruit varieties, and our science and thinking behind them, has reinforced our belief that the future of fruit lies in the breeding of new and exciting cultivars, which respond to consumer needs. Our investment in fruit genomics is starting to provide benefits. New genomic tools and systems such as smart breeding now allow breeding of natural fruit varieties that will rejuvenate the fruit category.

We have also initiated new developments which will provide a lead for future markets and far-horizon products. These include: nutritional genomics, where we are assessing the links between fruit and fruit components with human gene responses; establishing the genetic control of fruit colours such as red and yellow flesh in apples; identifying new fruit functionalities in a range of health and wellbeing responses; developing novel consumer science technologies to provide decision-making tools for development of innovative food products which the consumer currently has not experienced.

We see major challenges in 2007, but these are also major opportunities. There will be an increasing catalogue of human health and wellbeing benefits from fruit and fruit components. We will be backing these with our research on biochemical and gene control to aid rapid development of new fruit varieties with a new generation of consumer-driven, novel attributes.

The current market interest in sustainable production will start to have an impact on fruit production worldwide, and we will be developing research tools and results that will ensure that our production is energy efficient and environmentally sustainable.

The international fruit industry will be faced with even more competition from the fast-food, snack-food and health-food industries. We will be addressing this through continued development of new products that take fruit into those market spaces through: active packaging technologies that provide ready-to-eat fruit and fruit products; fresh fruit presented as a convenient food by expanding fresh-cut product concepts; continuing work on convenience attributes such as peelability and edible skins of current and future fruit varieties.

HortResearch will continue to support and provide innovation for the fresh fruit industry. We will be providing the new cultivars through our industry partnerships and our research will lead to better, healthier fruit that meets the demands of modern consumers for taste, convenience, evolving visual appeal and added health benefits.

MARTIN OXLEY, CHIEF EXECUTIVE OFFICER, BRITISH POLISH CHAMBER OF COMMERCE

I HAVE resolved to do more to promote Polish produce in the UK as food that is tasty, healthy and readily available to British consumers.

Poland, a country where agriculture resembles that of the UK half a century ago, with tiny smallholdings, horse-drawn ploughing still common, and low usage of agrichemicals, should not aim to become a landscape of vast prairies trying to compete on cost. Rather, it should retain the character and unique taste of its fruit and vegetables, and sell them as premium organic or near-organic produce to western Europe’s wealthy export markets.

There are many signs that this is already starting to happen. Trade between the UK and Poland is booming - according to the Office of National Statistics (ONS), Polish exports to the UK are growing even faster - up 90 per cent (January-October 2006 compared to January-October 2005). By the end of 2006, bilateral trade with Poland will have topped £6.6 billion - that is three times more than it was in 2000. As a proportion of this sum, food produce represents less than 10 per cent of Polish exports to the UK, but the volume - and value - of the produce hitting UK supermarket shelves is rocketing. Part of the reason behind this growth is the 600,000-plus Poles believed to be living and working in the UK since May 1, 2004, when Poland joined the EU. Poles in the UK are willing to pay five to six times more than they do at home for familiar tastes that they miss - a fact that has not escaped UK shopkeepers, from convenience stores to retail giants.

What is more interesting is that Polish tastes are spreading to the British consumer, and the notion of Poland as the unpolluted organic breadbasket is gaining acceptance. ‘Slow Slavic Food’ as a concept has been identified by journalists writing for The Times and the Daily Telegraph; delicious food that takes hours to prepare and hours to consume in good company, accompanied by a small glass or two of finest, chilled Polish vodka...

If you have not taken the opportunity to visit Poland on business, and still see the country mainly in terms of its excellent migrant workers, I recommend you pop over. The best time is in late April.

On the April 23 and 24, the BPCC will be holding its fourth annual conference and B2B show in Warsaw - an ideal opportunity to gain new insights and business contacts.