Profit and research fears prompt collaboration calls

There are growing calls for unprecedented levels of collaboration within the industry to solve the problem of dwindling profitability and address fears over the lack of research funding.

At an event at the House of Lords this week, the HDC unveiled its ‘Impact on Horticulture Through Collaboration’ report, which sums up the positive effect of HortLINK funding - which has now ceased - and calls on the industry to come together to fund projects for the common good.

“In the current economic climate, with government policy as it stands, there is no foreseeable prospect of additional public investment to address this deficiency, so the only course of action available is for all funders and researchers to work together to make the best possible use of what funding there is,” the report states. Issues around food security, climate change and the protection of natural ecosystems will be impossible without broad collaboration, it says.

The report comes as a meeting last week in the West Midlands underlined the need to work together to improve profitability.

Citing figures that 24 per cent of English horticultural businesses failed to turn a profit in 2010-11 and farm incomes in the sector were down 27 per cent, NFU West Midlands chairman Anthony Snell stressed the need for producers to work together.

The DEFRA-funded ‘Getting to the heart of Horticulture’ report, which was conducted by EFFP, highlights a number of challenges the sector faces over the coming years.

The report concludes: “While business confidence is high there remains concern about supply chain margin pressure, the loss of research and development capability and attracting and retaining quality personnel into the horticultural sector. In addition the study highlighted sector concerns regarding water security. Growers however are enthusiastic about the potential of renewable technologies.”

The study was designed to give a comprehensive review of the state of the horticultural industry in the West Midlands. Based on data supplied by 130 growers, it quantifies the scale and scope of the fresh produce, potato and horticultural industry across the five counties of Shropshire, Staffordshire, Warwickshire, Worcestershire and Herefordshire.

Collaboration and consolidation were also two of the key themes to come out of the Brassica Growers Association conference this week.

Both John Giles of consultants Promar International and Dieter Lloyd, of Pam Lloyd PR, stressed businesses should work together to share expertise and solve business problems facing the industry.

On marketing, they said products need to have a genuine point of differentiation to get listings and sales as a brand, adding that some of the most successful campaigns have been when growers combine to spend more and commit to the project long-term.