STRATEGY READY NOW MAKE IT WORK
STRATEGY READY NOW MAKE IT WORK
BPEXs strategic plan for the
industry received an
enthusiastic welcome at the
recent pig summit at
Cranfield Management
School. Alistair Driver charts
what it means for producers
THE strategy for the future of the British pig industry has been mapped out – now its up to the people who man the supply chain to make it work, says British Pig Executive chief executive Mick Sloyan.
Mr Sloyan has played an integral part in formulating BPEXs plan to forge a profitable and sustainable future for the industry out of the ashes of the current crisis. But he is aware of BPEXs limitations in implementing it.
"BPEX does not control the industry, but what we can do is encourage people to buy into the strategy," he says.
The three to five year strategic plan sets out a path for the industry to cut its cost base, defend its home market and expand into Europe and possibly beyond.
To achieve this, BPEX will aim to encourage greater communication across the supply chain, help match products to demand by carrying out consumer research and continue to promote the quality standard mark for pigmeat.
The plan outlines how industry levy money will be allocated. BPEX was formed at the end of last year amid widespread industry dissatisfaction with the MLCs role in promoting pigmeat and in allocating levy payers money. It is therefore determined to be accountable and has taken steps to ensure the plan is subject to evaluation and review along the way.
Some of the proposals will be implemented immediately, says Mr Sloyan. BPEX has already launched a £4.6m promotional campaign, which pig producers are supporting by touring supermarkets to promote the welfare and food safety messages behind the quality mark.
In enhancing British pigmeats image and building barriers to pork imports, BPEX is prepared to go further than previously in illustrating the difference between production methods at home and abroad.
It feels there are gains to be made from highlighting how the unique advantages of the British product outweigh the costs of potentially putting some consumers off pork altogether, by raising issues such as pig welfare and the contents of feed.
As part of the short-term plan, BPEX will tackle the task of transferring existing knowledge to businesses that will benefit from it. It will also commission new research aimed at reducing cost of production throughout the supply chain, making use of government and EU funding and promoting risk management techniques across the industry.
Mr Sloyan says BPEX will encourage greater communication between producers, processors, retailers and food service companies through a variety of means, including improving the flow of information between businesses.
He said the mood at the pig summit, held at Cranfield School of Management in late March to discuss the strategy, indicated a real industry-wide desire to work together.
More than 60 pig industry leaders covering production, processing, retailing, research, and policy making attended and responded positively to the plan that was laid before them, he says.
One notable absentee, however, was arguably the most powerful man in the industry – Max Hilliard, managing director of Malton Foods, who recently resigned from the board of BPEX.
But the attitude of other processors and retailers that attended, was encouraging said Mr Sloyan, who insisted that no significance should be attached to Mr Hilliards absence.
The principle of co-operation is central to the long-term thrust of the strategy, which will be implemented in years two and three. This will see BPEX drive forward its belief that the British industry needs to become more consumer driven in its approach to the market place.
"UK and European consumers are getting more individualistic and idiosyncratic in their food requirements," the strategy document states.
"Demands such as food safety and health concerns, convenience, service and entertainment are increasingly replacing the old needs of sustenance and price."
This presents opportunities to develop value-added products for segmented markets in the UK, Europe and possibly beyond. There is considerable scope for expansion into the EU market, says Mr Sloyan.
BPEX will undertake in-depth research into consumer segmentation and will develop business/ marketing plans to exploit gaps that are revealed. Results will be disseminated to the industry and it will then be up to individual companies to decide whether they want to act on them.
In Mr Sloyans opinion, the only way to expand profitably is through value-added products, backed up by the message of Britains core values. With the £s strength and other factors contributing to British industrys high cost base, it is difficult to compete on the commodity market, he says.
With prices on the up and some producers reaching the relative sanctuary of break-even point, the message from BPEX is that there is hope for the industry.
National Pig Association producer group chairman Stewart Houston, who is a BPEX board member, said there is an adage that there are more problems on the upturn of the pig cycle than at the bottom.
"But I have always felt there can be a bright future for the industry. I believe that there is now a marked change of attitude and that the will is there to deliver it," says Mr Houston. *
BPEXSTRATEGY
• Cut costs.
• Defend home market.
• Expand into Europe.