The potato industry has undergone a period of tricky rationalisation, low prices and production difficulties in the last decade, but the signs over the last 18 months, particularly in the fresh sector, have been that a corner has been well and truly turned. There finally seems to have been widespread realisation that simply sitting there and waiting for retailers, chefs and consumers to remember why they love the spud is no longer good enough. High profile, proactive marketing has found its way back into the picture, and a revitalised category is the result.
The BPC has long been extolling the virtues of image-building and awareness of trade and consumer demands, and can justifiably claim some credit for the change of tack, although it would no doubt admit that market dynamics have played a role in forcing the industry’s virtual re-invention of itself.
“This is the most exciting time in the fresh sector since I joined the industry eight years ago,” says BPC chairman David Walker. “The processing sector has been more under the cosh, but while there has been relatively less pressure on fresh, there has been a gradual decline over the last 40 years. So it has been extremely pleasing to see efforts from the likes of Bartlett’s and their Rooster brand, Boston Potatoes and Vivaldi, the MBM range and other initiatives to bring some brands into the sector. There has been significant footwork put into the marketing of these new brands, when eight years ago people would have said ‘waste of time’ or ‘lost cause’.”
The establishing of brands has coincided with the potato supply base targeting the potential growth in the foodservice sector as never before. Walker again applauds this and says there are two facets to the foodservice arena - the eating-out-of-home, pub, restaurant and hotel sector, which has boomed in recent years, and the public service sector, which has traditionally focused on price.
“There is no doubt that the rationalisation of the foodservice sector has made it easier for more people to grapple with it and identify who the major players are and how to work with them. We have done a lot of work to assist the industry in connecting with the foodservice network. There is significant opportunities for marketing brands and innovative varieties to restaurateurs who are always looking for something new.”
The public sector’s focus on price is also changing rapidly, he says. “The public sector foodservice buyers are having to get to grips with the government’s sustainability policy. Defra has been educating buyers about the economic and social aspects of sustainability and while they have traditionally been able to exercise their purchasing power to maintain low prices, there is now a real recognition and acceptance that if they want to buy local, high quality and environmentally friendly products, they cannot expect to get it at the cheapest price. The government is saying this publicly and pressure is being put on the bigger foodservice operators to include smaller growers in their supply chain - that represents a massive opportunity for growers.”
Against this positive backdrop, Yorkshire plays host to a who’s who of the potato industry next week, and Walker says the playlist is a result of the most exhaustive preparation to date for one of the council’s events. “The BPC is not in the event-organising business, but the rationale behind us having these type of events is the opportunity they give for knowledge transfer, and to showcase the work the council does to increase the amount of information available to the potato industry. The challenge is to present it in a practical manner, so that people can understand it, use it and gain value for money,” he says.
Walker adds that the joint sponsorship of Tesco and Branston Potatoes has been very important in allowing the event to expand its horizons. “The event serves the role of bringing people together. There is a real sense of belonging to the potato industry and that is what makes these things work for all facets of the sector. It is a very inclusive event and highlights the innovation taking place across the industry and in its many associated industries. If people are prepared to attend and sit down for two or three hours to listen to seminars, you have to honour their decision and deliver something good. We have spent a fair amount of money to attract speakers that may be a little controversial, but will at the very least make people think,” he says.
The annual seed industry event, also held by the BPC, is incorporated into this year’s proceedings, bringing the predominantly Scottish potato seed breeding community south of the border face-to-face with their predominantly English customer base. “Setting up the opportunities for these connections is a new departure for us. BPC2005 also brings together the fresh and processing sectors, but we recognise that, by and large, processors and packers have separate intentions, and the programme reflects that.”
Walker picks out Patrick Moore, a founder member of Greenpeace, who will take part in Future for Fresh: Do you have 2020 vision? “He has found the middle ground, combining environmental friendliness with economic sustainability. It seems to me that often the environment is emphasised to the exclusion of other factors, but Patrick recognises the importance of the social and economic aspects of business and life as well. He gives a sense of redressing the balance, and I think people will find it useful to hear that it is possible to live and thrive in this sustainability-driven world,” says Walker.
The same session will also feature Professor David Hughes, who is a regular at fresh produce events, but has his own unique take on the retail side of the industry. “There are few people who have his knowledge of the global retail trade, both as a consultant and as a practitioner, and he is also able to articulate his views in a way that few others can. It is important to talk in a language that people can relate to, feel comfortable with and will listen to. Fraser Milne of the Scottish Research Institute is similar in many respects, in that he has such a command of his subject that he is able to hold his audience.”
Milne will take part in a session on the future of soil management, harvesting and water use, which fits into the BPC remit of making research and development advances available to its levy payers, and also helping with the communication of policy decisions. “We recognise of course that the many EU directives are adding pressure to the industry and, while the NFU is the political body and lobbyist on a wider scale, we see our role as being the body that disseminates the information and takes it to the potato specialists. We want to help our growers to understand the upcoming issues before they get overwhelmed by them and soil management and cross-compliance issues are two important areas,” says Walker.
The opening seminar on the BPC stand will see the unveiling of a group data sharing service from the BPC, which follows research into the cost structures of the UK potato industry, compared with competitive industries on the continent. The BPC has developed a benchmarking model over several years and conducted a number of fact-finding tours to the continent for growers, but will now have very practical and accessible information on the structural differences to give the UK growers more chance to compete. “If you can’t measure your costs, you can’t manage them,” says Walker. And it is difficult to compare the cost structures in the UK with its European counterparts, he adds: “It is swings and roundabouts; we have led parties to the continent and in every case, growers have come back more confident in their ability to compete than they were prior to departure. To know your costs is essential and there have been some real surprises for companies that we have worked with - the operational costs are often not that well understood.
“To have a grasp on your production costs is the biggest challenge for any grower and without that it would be very difficult to have a sustainable future. Most people recognise that there are costs to be stripped out of the industry and I hope this session encourages people to sit down and take stock.”
The rationalisation process in the potato industry, as elsewhere, is radically changing the costs structures within the sector. “There are real benefits in scale, but they are seriously limited if you cannot control your costs,” says Walker, who points out that there have been some large-scale casualties in recent years as well as smaller players. “It is not just economies of scale, but attention to detail. The management structures, the recruitment and training requirements and retention of staff are a whole new ball game for some companies.”
To retain the necessary attention to detail, therefore, is paramount, and Milt Carter, a US grower for the processing industry who amongst his portfolio of land has one field in Texas under a 500 acre pivot, is a prime example of how to get it right. He will address GB processing - survive or thrive, on the first morning, and will talk about his efforts to perfect the recruitment and training process of a mammoth operation and maintain control of his business structure throughout a rapid expansion process. “Most growers have not had to deal with this problem yet in the UK,” Walker says, “but increasingly they are having to.”
The BPC aims to refresh minds, highlight the success stories of the industry and perhaps force some serious re-evaluation from some during BP2005. “We intend that nobody will leave without being stimulated as to how they can better manage their business in the future,” he promises.
SHOW A SMASH HIT
If bookings for the British Potato Council’s (BPC) biennial British Potato event are anything to go by, the potato sector is looking to the future with optimism. Advance ticket sales are three times higher than for the last event and over 30 new exhibitors will be joining the ‘regulars’ in the trade halls.
And, while it may have been the processing sector that has grabbed more of the limelight in recent years, the fresh sector is very much evident at the two-day event, which takes place on November 30 and December 1. Headline sponsors are the fresh packing company Branston and its retail customer Tesco. Most other major packers are also represented among the 130 plus exhibitors and a wide range of fresh produce handling and packaging equipment will be on display - ranging from large-scale working lines to the latest in handheld computers for process management and produce tracking.
“Once again we’ve stuck to the policy of only accepting exhibitors who have direct links to potatoes, as this is an event where people come to do business not have a day out,” says BPC’s Hannah Angus. “Nevertheless, it’s notable that show visitors are not solely drawn from the potato arena, because so much of what’s on display has applications right across the fresh produce sector. It’s also very encouraging that students from a wide range of colleges and courses have booked to attend.
“Some of the enthusiasm for the event may be due to its move to a new time of year and to an ideally-equipped new venue at the Yorkshire Event Centre in Harrogate,” says Angus. “We also believe it’s because the show takes a comprehensive field-to-fork approach and that reflects the integration occurring within the industry. In other crop areas there often tends to be grower-orientated agronomy events and then the trade beyond the farm gate gathers at a different time. But, with potatoes, we are fortunate that everyone comes together for one large, vibrant event.
“The list of product launches planned for the event proves this point. For instance, world-leading tractor manufacturer, John Deere, has chosen the event for the GB launch of its latest model to growers. Meanwhile merchants, packers and processors will be the target for several produce-handling innovations.
“Some subjects also bridge the whole industry. For example, the safe box-handling demonstration being staged by three collaborating exhibitors,” she adds
Aside from the commercial exhibits, scientists will also be presenting their latest findings and the BPC is running a continuous programme of ‘drop-in’, mini-seminars. Topics range from technical subjects such as sprout suppression and soil management to business topics like benchmarking, market information and opportunities in the foodservice sector.
Those with a greater appetite for discussion may find last minute spaces in an additional series of half-day conventions on the same site. Pre-booking is essential for these (tel: 01743 719271) and places cost £45. The BPC says the proceeds have been used to arrange presentations from high quality speakers offering genuine insights into the issues affecting each sector.
Of all the convention speakers, the one perhaps furthest from home, and not just geographically, is one-time Greenpeace founder and environmental activist Dr Patrick Moore from Vancouver, Canada. Nicknamed the “sensible environmentalist”, because of his belief that co-operation achieves more than confrontation, he will be leading a lively session on environmental issues and consumer concerns as part of the fresh convention (Thursday 9.30am-1pm).
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