Category Archives: Procurement

Britain’s organic market celebrates sixth year of growth

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The Organic Research Centre has shared news of the Soil Association’s 2018 Organic Market Report which reveals that the UK organic market is now worth £2.2 billion, growing 6% in 2017.

The market has had six years of steady growth, with organic accounting for 1.5% of the total UK food and drink market.

In 2017, the amount of farmland in conversion to organic rose 22% as farmers responded to the rise in demand for organic produce

And with payment windows now open for Countryside Stewardship in England and the Agri-Environment Climate Scheme in Scotland, the amount of farmland being converted to organic is expected to keep rising, particularly in light of the Government’s 25 Year Environment Plan which calls for agriculture that supports the natural environment.

Key trends highlighted in the report include:

  • Supermarket sales of organic grew by 4.2% in 2017
  • Independent retailers increased sales of organic by 9.7%, and sales for home delivery, including box schemes, grew by 9.5%
  • Sales in foodservice (which includes catering and restaurants) grew by 10.2%
  • Dairy sales increased by 3.1%, and still have the highest share of the organic food and drink market at nearly 29%
  • Sales of meat, fish and poultry grew by 4.1%
  • Fresh produce, up 6.5%, had the highest value growth, equating to over £20m in sales

Millennials are now said to be the biggest customer group

Adam Wakeley of Organic Farm Foods said: “Organic fruit has been a star performer over the past year, and we’ve certainly seen all of fresh organic produce grow. One reason is down to an evolving consumer profile – millennials are now our biggest customer group, and they show a huge interest in food provenance and health. They understand that having food grown in an environmentally friendly way is a good thing. We believe their attitude is here to stay and will continue to drive growth in the future.”

This year has seen booming sales in independent retail and home delivery. Expanding online ranges and growing interest in box schemes, means that these areas are now growing at a faster rate than supermarket sales and between them account for almost 30% of the organic market.  Logo: http://www.organiccentrewales.org.uk/

For some farmers these alternative routes to market, coupled with the increased consumer interest in food provenance, have been crucial to their success.

A press release on 15 March 2018 records that the English Organic Forum has written to Environment Secretary of State Michael Gove as he prepared to address the Prosperity UK Green Brexit Conference in London on Thursday 15th March.

The English Organic Forum represents organic organisations and businesses including: Abacus Agriculture Ltd.; Biodynamic Association; EcoS Consultancy; Future Sustainability; Garden Organic; Institute of Organic Training and Advice; Land Workers’ Alliance; Organic Arable; Organic Farmers and Growers CIC; Organic Food Federation; Organic Growers Alliance; Organic Milk Suppliers Co-operative; Organic Research Centre; Organic Trade Board; Soil Association; Triodos Bank; SA Cert Ltd.; UK Organic Certifiers Group.

Header from:   http://www.sopa.org.uk/

The English Organic Forum letter emphasises that the UK is lagging behind its major European competitors in the development of organic food and farming. It sets out why stronger support for organic farming would be a significant opportunity to deliver both economic and environmental benefits, consistent with government policy aspirations.

Nic Lampkin, chair of the forum and director of the Organic Research Centre, says: “The UK needs to up its game and focus more on organic food and farming if it is to reach its ambition for a new agricultural policy that delivers public goods as well as economic benefits. Organic food and farming is closely aligned to the Government’s key aspiration of a ‘Green Brexit’. We would like to have seen more focus on organic, with all its benefits, in the consultation proposals on future food and farming policy.”

Adrian Blackshaw, chair of the Organic Trade Board says: “Many EU countries have seen 20% market growth rates in recent years, with market shares approaching 10% of food sales. Clearly we have some catching up to do just to satisfy growing consumer demand.” Organic farming accounts for 6.7% of farmland under production in the EU (UK 3%). Italy, Sweden and Austria are between 15-20%. President Macron has declared a target of 22% of French farmland to be organic by 2022 and the German government coalition agreement includes a target of 20% of German agriculture to be organic by 2030.

Roger Kerr, CEO of Organic Farmers and Growers, was surprised that organic wasn’t more widely identified in the consultation documents. Organic production is backed up by a legal regulation with annual inspections, certification and verification. With this robust approach Defra can have confidence in organic food and farming delivering both economic benefits and public goods for all.”

The 2017 Out to Lunch report found that organic food had doubled on the high street, with twelve out of the twenty-five restaurant chains surveyed using organic ingredients – up from six in the previous report.

Helen Browning, Soil Association chief executive, said: “Trust is something that’s increasingly important: people want to understand where their food has come from, how it has been produced, and more and more shoppers want to buy local and British. The customer is increasingly interested in the provenance and traceability of their food, and this is an area organic can really deliver on . . . And the growing recognition of organic food and drink in restaurants and cafes creates opportunities for organic farmers to access new markets here at home.”

 

 

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France has announced that at least half of all food bought by the public sector must be organic or locally produced

In February, as sales of organic food continue to rise in France and are reachingrecord levels’ in England, the French Agricultural Minister Stéphane Travert announced the new rules as part of measures to boost the French farming sector, and to improve diets.

Travert (left) said that as France is showing, public procurement can be a “powerful tool” for supporting local and organic farmers and can make an “important contribution” towards improved public health. Public procurement approaches will also support SME producers to gain access to markets, in line with the commitments made in the Industrial Strategy.

The Soil Association’s Policy and Campaigns Manager Rob Percival (right) said the initiative highlights the “power of public procurement” to support better farming practices and improve diets.

He continued: “More ambitious action from Government could further stimulate demand for British, local, and higher quality produce. Michael Gove already has the tools he needs at his fingertips. He must move now to implement DEFRA’s Balanced Scorecard approach across the whole public sector including education and health, while requiring public procurement decisions to place a weighting of at least 60% on quality relative to cost.”

“Gove must seize the opportunity presented by Brexit to implement a procurement policy at least as ambitious as his French counterpart,” Mr Percival added.

 

 

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A fair farmgate price for milk: Crediton Dairy and Barbers Farmhouse Cheesemakers

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Ian Potter reports that Crediton Dairy is to hold its ‘chart topping’ farmgate milk price at 31ppl until at least March 1st.

The Crediton Dairy Supply Group recognises that, first and foremost, central to both recruiting and retaining farmers, is to pay a competitive, sustainable and attainable price for the milk they produce.

Devon-based Crediton Dairy is a leading supplier of 100% British milks and creams to all of the UK’s major retailers and food service businesses. It is accredited by the Soil Association and are the UK’s only producer of Organic Long Life milk.

By working closely with 70 local farmers, within a 25-mile radius, the dairy has a secure, sustainable and fully traceable supply of high quality, farm assured milk.

All the supplying farmers are fully accredited to the Red Tractor Assurance for Farms – Dairy Scheme and meet the highest standards of animal health and welfare, food safety, traceability and environmental protection.

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Barbers Farmhouse Cheesemakers will also hold its farmgate milk price.

Barbers manufacturing standard litre price has been a healthy 31.193ppl and its liquid standard litre 30.074ppl. – until at least March 1st.

The Barber family has been farming and making cheese in Ditcheat, Somerset since 1833 making us the oldest surviving cheesemaking business in the UK. Farming and cheesemaking have long been vital parts of the local economy and Barbers specialises in making West Country farmhouse cheddar and work with many neighbouring farmers who supply additional milk, supporting the local farming economy.

The Fairtrade ethos for coffee and other products is widely accepted in Britain and its principle of economic justice should be applied to food produced in Britain – giving food producers a farmgate price which covers the full costs of production.

 

 

 

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‘Bright Blue’ Conservative proposal: damaging to British food producers but profitable to the hospitality industry, commodity speculators and Exim traders

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The proposal by a Conservative think tank opens with a people-pleasing injunction: end the payment of vast subsidies to wealthy landowners after Brexit.

However, those who read and remember more than the headline will begin to see that profits are simply to be redirected.

“The EU system of paying farmers according to how much land they own should be replaced by payments for environmental benefits plus a ‘means-tested livelihood support’ for the poorest”, the report by Bright Blue says. It accepts that the system could reduce food production and make Britain more reliant on imports, which account for 40% of consumption. However, it says that the loss of self-sufficiency is a price worth paying for protecting wildlife and natural beauty.

After a lyrical paragraph about the environment, Bright Blue sheds sentiment and proposes three income sources for food producers (in order of preference?):

  1. A market-based commissioning scheme;
  2. means-tested livelihood support – aka government dole
  3. and/or income from agricultural produce or other monetisable services sold at market prices without any production subsidies.

Yet another nightmare administrative system?

Chapter Three of the report explains, “We envisage ‘suppliers’ bidding together or individually to supply ecosystem services to paying ‘beneficiaries’ in specific catchments on online market-places. Suppliers would include farmers, land owners, and land managers”. 

Voices of sanityTimes readers’ comment:

David Illsley 

How to do the right thing for all the wrong reasons! Lower subsidies for empty fields, yes! but don’t pay farmers to stop producing food only to pay them for planting flowers! This country needs to be self-sufficient in basic foods, milk, grain, meat, food, water, and as much as possible energy. 

Tony Perryman 

So right, when the Chancellor might be announcing a relaxation of greenbelt rules this week. Land and the production of food for the nation is more important; our trading deficit will become a concern post Brexit. 

Keith William Hendry 

Scotland is self-sufficient in fish, meat, dairy products, vegetables & we have copious amounts of water. Our whisky is the biggest net export cash raiser for the exchequer.

Jane Cooper says it all:

“One problem is that UK farmers, farming to support and enhance our environment and with high animal welfare standards, will be competing on a world market with overseas companies that produce food cheaply by trashing their environments, abusing animals and paying slave-labour wages to employees.  That’s not a fair ‘market’ for UK farmers to be competing in.  

“If you can find a way to have farmers fairly paid what it actually costs to produce food in the UK to the environmental and welfare standards expected by most people in UK, then I agree subsidies wouldn’t be needed”.

 

 

 

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No fair trade here: cream and butter prices rise but farm-gate prices for milk don’t

The Financial Times reports that a reduction in the milk supply, due to a cold spring and dairy farmers leaving, has led to prices of butter and cream rising 18.7% in the year, according to data from the Office for National Statistics. But despite “record prices” for wholesale cream and butter in recent weeks, the National Farmers Union point out farm-gate prices for milk have continued to fail to keep in step.

BBC online reports that Arla’s CEO Peter Tuborgh said producers “put the brakes on” in 2016, in the wake of previous overproduction of milk and consequently lower prices and Michael Oakes, chairman of the National Farmers Union dairy board, added that UK supply had fallen partly because so many farmers “decided enough was enough during that downturn”. Many farmers have often had to sell milk for less than the cost of producing it and so – understandably – the number of UK dairy producers has fallen.

The National Farmers’ Union said the “constant boom-and-bust dairy market cycle” helped “no-one, most of all farmers” and expressed concern about the lack of strong upward movement in the farm-gate milk price.

Milk buyers are worried about milk volumes falling but, the NFU spokesperson added, “Confidence within dairy farming is at an all-time low [due to] mistrust in the market dynamics and suspicion about how milk buyers are treating their supply base, coupled with the lack of direction on the impact of Brexit on the dairy sector.”

Post-Brexit, will the UK government ensure that ‘ordinary’ farmers receive a fairer proportion of the agricultural payments and turn away from the practice of subsidising offshore companies and rich individuals?

And will the Groceries Code Adjudicator, who places great emphasis on scrutinising supermarkets give more time to food producers and address the issue of unjust farmgate prices?

 

 

 

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Food security 10: British dairy production at risk

 

Pre-empting qualms about the health impacts of dairy products, from Lancashire dairy farmer Tom Rigby’s retweet we note the findings of professor of food chain nutrition Ian Givens and his colleagues from Reading University, Copenhagen University and Wageningen University in the Netherlands. They analysed 29 studies involving 938,465 participants from around the world undertaken over the last 35 years, including five done in the UK. “No associations were found for total (high-fat/low-fat) dairy and milk with the health outcomes of mortality, CHD or CVD,” they said. In fact, they added, fermented dairy products may potentially slightly lower the risk of having a heart attack or stroke.

A new hazard is being added to the long-term imposition of payments below the cost of production

As dairy farms close, due to unviable prices, the distances between farms is growing and providing a tanker to collect their milk is too expensive. The East Anglian Times reports that Muller has announced that it will close its Chadwell Heath depot in London and no longer collect the milk from 18 dairy farms across Norfolk, Suffolk. Essex and Kent. This follows the closure of two Scottish plants by Muller last year.

The 18 dairy farms who are to have their milk supply contracts cancelled by Muller have been given 12 months from the end of March to find new buyers for their milk at a price that offers them a viable future – one commentator adds gloomily:

“Given current trends it won’t be long before it will be possible to drive from Dover to York without seeing a single dairy cow”.

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A brief history for visiting readers from other countries (left, Jan-May)

The number of dairy farms across the UK has fallen dramatically since the Milk Marketing Board (MMB) was abolished in I993 by a Conservative government that saw it as “anti-competitive”.  In the period 2013-2016 alone, Business Matters reports that 1022 farms have closed. The MMB was created by an act of Parliament in the 1930s to ensure that all UK dairy farmers were paid the same price for their milk and that they shared milk collection charges regardless of where they farmed. This was to stop dairy farmers being bullied by over-powerful dairy companies who were establishing virtual regional monopolies.

Since the MMB was broken up, farmers have had to negotiate terms with processors individually and this ‘free trade’ has benefitted the milk processing companies and now the average price UK dairy farmers received for their milk last year was lower than it was when the MMB was abolished 24 years ago – and that is the main reason that the number of dairy herds in the UK has collapsed.

 

 

MEP Molly Scott Cato urges the Co-operative Group to source locally

Could co-operative retailers sell good quality food produced on their former farms (now owned by the Wellcome Trust) as MEP Molly Scott Cato advocated two years before the sale?

With foreboding in 2012, she saw the depressing comments from the Co-operative Group that the Co-operative Farms are a ‘non-core’ part of the business, and that attachment to them is sentimental, as indicating that the current generation of co-operative managers shared a short-sightedness about their role in providing customers with access to a reliable source of ‘good food’.

In 2010, Molly co-wrote a paper called ‘The co-operative path to food security‘. In it, she pointed to the increasing volatility of global food prices as speculators moved their gambling activities from financial products to commodities markets, saying, “It never was enough for me that the food I bought in my local Co-op was ethical and fairly-traded; as a green economist I also wanted it to be as local as possible”.  She continued: 

Supermarkets that sell the same corporate products as the rest have lost all but the merest token of a co-operative identity

“The Co-operative shops have not been as successful in this regard as I would like because of their centralised distribution system, but my own Midcounties Co-op has been building up its Local Harvest offer in recent years and I’m surely not the only customer who looks to see whether the vegetables on the shelves have been grown on the Co-operative Farms”.

Now that is no longer an option, the writer wonders if an agreement could be made with local Wellcome (former Co-op) farms to provide local food in Co-op stores – and offer some organic options for those who want to avoid food with pesticide residues?