Producers and their representatives need to be better prepared and have every issue costed out in their negotiations with buyers, delegates at the first NFU grower representative summit were told last week.

More than 50 delegates took part in the event organised by the NFU on 13 February to help growers in their negotiation skills and contractual terms with customers in the horticulture and potatoes sector.

Peter Nelson of Warwick Business School said: “The risks growers carry are unlike those in any other business and must be analysed, costed and where possible mitigated.

'Negotiation is also about influence and education, so think about what you can do to help buyers. Consumer attitudes to growers as the source of their purchases are becoming more important so, for example, helping your customer educate consumers on the vagaries of horticulture will be in the interests of all.”

The event was born out of the NFU’s desire to forge better relations in the supply chain under the banner of its Catalyst for Change report. Lee Abbey, NFU horticulture and potatoes adviser, said: “Our report highlighted that growers can sometimes feel dictated to by buyers on pricing decisions, often receive contracts very late in the season and would like more guidance on developing clear and transparent pricing formulas.

'The summit explored all aspects of contractual relationships and, without exception, growers told us that they gained something valuable from it. With representatives clearly so eager to develop their skills we hope this is just the first event of its kind.”

William Martin, chairman of NFU Sugar, advised delegates on the importance of preparation: “Preparing the ground before you embark on negotiations is vital. But it is not just about being sure about what you are going to do, but also making sure that those you represent know what might be achievable.”

The audience also learned that although price is hugely important, it is profitability that leads to business sustainability.

Concluding the event, Nina Winter, NFU chief legal adviser, announced the launch of a new NFU business guide on understanding contracts and the terms and conditions to be aware of. The guide is free to members and available on the NFU website.

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