North West players stand proud

The landscape of the North West has become the backbone of a thriving fresh produce industry, from growers and suppliers through to major wholesale markets and a vibrant retail scene, not to forget the influx of fruit and vegetables from across the world from the Port of Liverpool.

The food and farming industry has a long-standing hold in the region, with DEFRA figures showing that more than 75 per cent of the land in the North West is used for farming and that the agricultural sector has more than 22,000 farm businesses employing some 40,000 people. Together, the agriculturaland food sectors contribute £9.5 billion to the region’s economy.

A clear vision

The North West has identified its potential as a food and drink supplier and in recent years, a number of surveys and studies have been put together to help formulate an action plan for a region that has in some ways yet to carve itself a strong identity across the UK.

Food Northwest commissioned a report by Rural Innovation and its partners in December 2008 to identify the opportunities and challenges for supplying local food and put forward an action plan to increase the availability, supply and demand for local food in the region.

The report found that the North West had a number of strengths from the diversity of the landscape and a forward-thinking farming community to universal support for local food supply chains. However, the study picked out “a lack of co-ordinated effort” and confusion among producers, who did not always know that support was on hand or where to get it. At the same time, both the retail and foodservice sectors highlighted distribution and availability as a significant barrier to sourcing and stocking local food.

The executive summary set out a local food vision that by 2012, the supply, availability and consumer demand for local food in the North West will be “the best in the UK”.

The report read: “All members of the local food supply chain will benefit from greatly increased levels of information and improved opportunities to do business...

“Above all, the region will be wonderfully proud of its rich diversity of local food and drink.”

So with less than two years to go, is the North West on the way to fulfilling this vision? And how does the fresh produce industry fit into the picture?

This feature traces along the supply chain from production to trading and distribution to examine how North West-based produce players are making the most of their offer.

From the ground up

Cauliflower, broccoli, spring greens, beetroot and Brussels sprouts make up some of the main vegetable lines that have been produced in the North West for generations.

However, production in the region has evolved in recent years and like in other areas across the UK, the number of growers has fallen while the scale of the businesses has grown to push forward supply and demand.

Fred Tyler, a technical consultant based in Barnacre who works with grower groups such as Alpha Growers Ltd, attributes the high-quality output to land that has “grade-one” soil and plenty of rainwater. “This is going to be an important factor in future,” he tells FPJ.

“When I wake up the morning, I never know what I will be doing in the afternoon because that is what the industry is like,” he continues. “At the moment, the seasons have got going even though growth has been behind normal, by about two weeks or so.

“But in the long term, the future for the North West is extremely good because we have got the right climate and the right soil. In fact, we have a variety of soil types and this enables us to grow a wide range of crops with minimum irrigation. As climate change continues and water becomes increasingly sought after and expensive, I think we will see the North West become increasingly important again.”

A resilient trade

Manchester’s New Smithfield Market is a bustling hub for fresh produce, home to 45 core tenants that service more than 650 businesses in and around the city.

Manchester itself has moved forward in recent years, with the city centre now a thriving mass of shops, restaurants and bars.

The city’s wholesale market makes up the backbone of fresh produce supply to these businesses and beyond, situated just two miles from the city centre and close to transport links.

However, there is a long-standing consensus that the market is outdated and practical plans to redevelop the site date as far back as 1997. The council has so far invested a six-figure sum into improving the infrastructure of the market but after years of discussions, both the market authority and traders are keen to see the market brought back to life in the way only a more substantial investment can achieve.

Lee Vallender from Manchester City Council is keen to see things happening. “The business case is being developed for a multi-million pound investment into the market, which will provide modern facilities and the potential to attract further investment,” he explains. “The project is still developing its business case, looking at the various funding and investment streams...

“The market is 40 years old, but we have got a proactive approach to maintenance and we invest heavily every year in infrastructure.

However, the building has come to the end of its life cycle and investment is now required to ensure the tenants can continue to remain competitive within the marketplace.

“But even though the facility is ageing, the atmosphere here is quite electric. There is an excellent team spirit and passion for service and quality that runs throughout the market.”

So for now, the traders continue to operate from the same site, striving to maintain their profitability and build on long-standing relationships with both their suppliers and customers.

“There is no active tenants’ association on site, but this is something we are working to resolve,” says Vallender. “Manchester City Council recognises the importance of good tenant relationships and we strive to continually improve these. In recent months, we’ve worked collaboratively with our tenants in order to raise the profile of the market and to further develop a strong network of businesses that use the market.

“Furthermore, we look to support businesses on site either to assist in their growth plans or through periods of change in circumstance.

“However, things can be better and I’m hoping once the tenants’ association is active again there is more we can do together to make the wholesale market the region’s preferred choice for fresh produce.”

But the redevelopment is top of the list, especially now that the condition of the market has pushed both the market authority and traders to a crossroads.

“We’ve appointed a consultant to research and analyse the wholesale industry in the North West, to assist us with our development strategy for the wholesale market and how best to facilitate its growth,” says Vallender. “We hope the redeveloped New Smithfield Market site will bring together all food-related activity in the city and be the logical first point of contact on food matters, as well as an expanded and improved wholesale operation.”

Turning the tide

The Liverpool Produce Terminal (LPT) has revolutionised the way that fresh produce is brought into the UK since it opened for business 18 months ago.

The project has not been without its fair share of hurdles and challenges, not least a delay in construction that caused operators to miss the start of the Spanish export season.

But the £6 million, 90,000sqft facility has heralded a new way to supply fruit and vegetables to the North, in a bid to reduce the number of trucks travelling the length and breadth of the UK. Citrus, top fruit and fruit juice are the main lines passing through the port at the moment.

Andy Rickard, operations director at LPT, tells FPJ that the team has built up relationships with produce companies in the North West with “hard work and downright stubbornness”, through which they have continued to market the facility and its benefits.

“We have worked with local companies providing services and continue to do so,” he says. “What is happening, in effect, is that we are opening up supply chains on which local companies can benefit. There is no cost benefit in bringing stock into LPT if it is only being delivered locally - however, if we can act as a catalyst to bring new shipping routes into the North West, then other companies can and will benefit from this.”

Sowhat are the benefits of being located in this region? “Firstly, there is no M25,” Rickard reasons.“We have an unrivalled motorway network in the North West that lends itself to distribution. It is also the largest manufacturing region in the UK, of which £3bn-worth is in food. We have major food retailers in the area, which means we have an abundance of transport, as well as numerous hauliers delivering into the North West wanting to take work back to their own regions.”

Next up for LPT, the team is planning to continue expanding the number and range of services that link the port with some of the major producing countries around the world.

Prospects are shaping up well, with a new feeder from Rotterdam expected in the near future, which will link Liverpool into all the major shipping routes from the southern hemisphere.

Fresh Direct Local consolidates Manchester presence

Fresh Direct Local relocated from Skelmersdale to Wigan this year, when it merged with the Manchester business. Here, managing director Boyd Park gives his view of the North West and reveals how the firm operates in the area.

What are your plans for Fresh Direct Local in the North West?

Fresh Direct Local in the North West will continue to develop and grow. The business, originally called Parkfresh plc, was acquired by Fresh Direct UK in April 2008, in the same year that it was named Re:fresh JP Fresh Regional Foodservice Supplier of the Year, as well as a finalist in the Bank of Scotland Corporate Entrepreneur Challenge and Lancashire Business of the Year.

Two years on, we relocated the business from Skelmersdale to Wigan, to a site where it merged with our Manchester business.

This new regional depot boasts state-of-the-art facilities, which include five acres of land and a 40,000sqft temperature-controlled warehouse, ensuring our commitment to offer a better service to our customers and expand at a much greater rate.

How have you linked up with local growers and suppliers?

We have always strived to source local produce wherever seasonality allows and will continue to honour our commitment to reduce food miles, improve freshness, support sustainability in the local economy and most importantly, give the customer what they want. Within the North West, we have some outstanding growing areas, from Hesketh Bank and Tarlton for most of our salads to root vegetable production in many parts of Cumbria and Lancashire. Many of the same farms from when the business was established more than 20 years ago are still valued suppliers. In many cases, we collect from the farms when delivering in the area, thereby reducing food miles. We work closely to determine the quantities we need to secure for the season, which ensures continuity to the farm and allows us the flexibility to take advantage of promotions when they have a surplus. This working partnership means we have availability of some of the best local produce available.

What has the city centre development in both Manchester and Liverpool over the last decade meant for your business?

Much of our growth over the years has been achieved by obtaining a greater market share. We’ve achieved this through cold calling, marketing, advertising and most rewardingly through word of mouth. This mainly organic growth has been significantly helped by the development of the two major cities either side of us. At first it was Manchester, but then more recently Liverpool, helped by its Capital of Culture status, that has economically and socially been transformed over recent years. Both cities are host to an enormous variety of places where you can enjoy many different foods, from takeaways to fine dining, with different themes and menus constantly developing. This gives us the supply challenge of procuring a greater variety of produce as demand expands, in contrast to the past, when people didn’t want to go back into the cities at night to socialise.

How do you see the development of the produce industry in this region?

The emphasis on provenance over recent years has been a tremendous help to the North West, where such a large variety and quantity of fresh produce is grown. We already see a greater variety of produce being developed as people become more adventurous in their eating habits and trends emerge. This is not only the influx of restaurants of a European, Asian, Mexican or any other theme, but it’s what is eaten in the home. Local growers are adapting to this changing demand, but need to keep experimenting with new and forgotten varieties.

Do you think the North West has a strong enough identity nationwide?

With the development of Manchester and Liverpool, the North West is eventually attracting more investment, with many of the national and South-based chains of restaurants and hotels opening up in our area.

We have a great mix of urban development with quality farming land and a relatively stable weather pattern for growing produce - a great area to grow and eat fresh produce.

Boyd Park will be speaking at FPJ’s North West Conference on 3 June