This money will be used, over the next three years, to bring benchmarking into horticulture. The FCC will establish 20 benchmarking clubs involving at least 300 growersacross the UK allowing growers to compare their costs in a confidential way, discuss improvement ideas and learn from the best.

All sectors of fresh produce are eligible to join except for potatoes and ornamentals.

Mark Tinsley, md of vegetable grower PC Tinsley Ltd and a member of the FCC steering group commented: 'The horticultural sector is in the midst of a major shake up and Spanish and Dutch companies are muscling in on our market. I believe we should stop seeing our neighbours as competitors and work much better together. I know that benchmarking works, I've seen some really inspiring examples and now I hope to see many more UK growers benefiting'.

Supporters of this project include the National Farmers Union, the Horticultural Development Council and the Fresh Produce Consortium. Companies can get involved through the major grower associations, for example the Cucumber Growers and Tomato Growers Associations. Where no existing local groups exist, the FCC will help to form new ones.

Deirdre Hutton, chair of the FCC said 'We've recently conducted a major survey, proving that benchmarking does help farmers and growers to save cost and improve output. But the number of people benefiting is too small. This award from Defra will greatly help us spread this approach across UK horticulture.' Each club will set its own agenda to promote business improvement. Activities may include: finding areas where growers are paying over the odds and devising solutions, e.g. by purchasing collectively; swapping ideas, e.g. through farm visits; comparing performance internationally; investigating ideas from other sectors and industries.

The DEFRA money complements the £50,200 donated in 2002 by the Farmers' Fund – a charity set up by the major supermarkets in the wake of the foot-and-mouth crisis to help a number of major grower-packers to apply the Confederation of British Industry's benchmarking system, Probe. This is due to complete in June.

The FCC has also launched a benchmarking starter pack for farmers in all This pack provides an explanation of benchmarking, case studies and advice on how to get started. The FCC is part of a national strategy to improve the competitiveness and profitability of farming. It is testing and promoting various approaches to business improvement. It will give farmers free access to important information about changing patterns of food consumption and the evolving food chain. This will help them to identify market opportunities and to plan for the future.