REVESBYPOTATOES
SPUD CONTRACTS DELIVER FAIR SHARES ALL ROUND
A FAIR return for everybody, from farmer to retailer is what Cost Plus contracts promise – and what they deliver so far, according to Lincs grower Bob Sherriff.
Mr Sherriff has expanded potato production at Revesby Farms from 50ha (120 acres) four years ago to 140ha (350 acres) today, with some double cropped. Cost Plus contracts with Fenmarc, which supplies Asda, underpin his marketing.
"We have increased the contract area each year – now about one-third of the crop is on Cost Plus," he says. "It gives us a bit of security, as contracts should."
Contracts are agreed on an area basis, and a price paid on saleable tonnes/ha produced. The price set is based on a typical cost to grow the crop, plus a margin for the grower, hence the name.
"Fenmarc provides Asda with the growing costs, including seed. If we can grow for less than that, then it is better for us," he says.
However, nothing is done that might hit quality. "We have got to do the job right and produce what the supermarket demands. Gone are the days when you could grow a crop without knowing where it was going to go."
Substantial investment has been made. Two years ago a new grading line was bought for £130,000 and planting and lifting machinery has been upgraded.
"We used to have two of everything, two planters, two separators, two lifters." Now, one larger machine for each operation is worked harder. Despite the initial outlay, fixed cost/ha is lower.
Planting starts in March with Maris Bard and Premiere and finishes in July with second crop Charlotte or Maris Peer. Lifting starts in June, and the grading line runs from then through to mid-November, finishing with the farms own seed, grown on the wolds.
Only the seed goes into cold storage. Everything else is moved as it comes off the grader. "From when we start lifting I expect to see at least one Fenmarc lorry in here everyday."
Even the fixed cost of the seed store is spread over a maximum tonnage, with spare space let to neighbouring growers. *
Second plantings make maximum use of machinery and Cost Plus contracts are a cornerstone of potato production at Revesby Farms, says manager Bob Sherriff.
REVESBYPOTATOES
• Varieties: Charlotte, Estima, Nadine, Premiere, Saxon, Shannon, Maris Bard, Maris Peer.
• Second plantings spread cost.
• Cold store for seed.
• No ware storage.
• June-November deliveries.
• Cost Plus cornerstone.
Cost Plus concept
Fenmarc, which created the Cost Plus concept with growers and Asda four years ago, hand picks producers for the scheme. While driving down cost of production is a core concept, size of potato operation is not a key requirement. "The range is enormous, from 30 acres to 2000 acres," says procurement director Mark Taylor. "Growers are really selected on their attitude and management style. They have to a have a willingness to drive
the business on." If growers hit their efficiency targets they are guaranteed to make a reasonable margin, irrespective of what happens in the market place, he says. Most started with a small proportion of their crop in the scheme, but like Mr Sherriff have increased that since joining. Now, 57 growers supply potatoes 52 weeks a year off about 1400ha (3500 acres). Carrot and onion Cost Plus agreements are also being developed. Detailed retail sales information from ASDA is relayed to growers which encourages them to view produce on the shelves as their own. Everything is fully traceable and all parties involved have one agenda, says Fenmarc MD, Stuart Edwards. "It is about driving a better deal for the consumer."