TALKING POINT
TALKING POINT
More co-operation is the solution to many of the industrys problems. So say government, the president of the NFU, Sir Donald Curry and others, echoing the words of Sir Horace Plunkett from early in the past century. How come more than half UK producers remain hesitant or unconvinced? Perhaps because the UK solution for decades was statutory marketing boards – distancing producers from the markets. But they did free farmers to concentrate on production efficiencies. To some, the old political affiliations of the co-operative retail societies were a turn-off. Probably because many have preferred, and will continue, to deal direct, cherry-picked by processors or merchants. But they should recognise that getting into bed with an elephant can have its drawbacks.
Unprecedented changes in market forces are afoot. Manufacturers and processors have for years branded their products with labels and logos to establish market share and maintain gross margins. Could their owners now be on the defensive? A major multi-national food manufacturer recently announced a rationalisation programme to reduce brand numbers by half but stretch the remainder to include new products. New premium products with alleged health enhancing constituents are the latest weapons in the arsenal to persuade the perfectly healthy that they wont remain so, unless they buy.
Meanwhile, supermarket retailers have exposed this questionable practice by offering own brands of the simpler commodities at considerable discounts. They are further strengthening their position by the adoption of category management techniques; a US import designed to reduce the numbers of their suppliers, farmers, growers, better to dictate price and quality.
Where does all this muscle building leave producers? Given the various interests in food miles, organic produce, farmers markets, animal welfare, even government money (like the fabled Arabian Phoenix, well known but rarely sighted) are there not new opportunities for producer groups to exploit? Establishing local brands as a direct appeal to consumers, over the heads of retailers, should now be a priority in finding a place on supermarket shelves. Recent confusions over the definition of Scotch beef have been highlighted. Using English stores hardly enters into the spirit of things. Is Scotch whisky ever made from Irish barley? A local brand probably needs some romantic overtones, literary or historic associations, to enhance the imagination when trying to taste the difference.
The Little Red Tractor has helped lay the foundations, although it should complement and not distract from local brands. Why should it not also be promoted on the Continent? Exports can be transported cheaply. So many of those juggernauts, loaded with Continental imports, and clogging the M20 and M25 go home empty. Freight rates for the return journey often cost half as much as the outward-bound leg.
Local brands will not survive unless consumers are made aware and want them. The trend for co-ops to merge into larger units in recent years is therefore to be encouraged as a means to economies of scale, affording professional management, guaranteeing quality and brand promotion. This should not preclude the formation of new groups with unique products and/or niche markets.
Farmers markets can play a pioneering role in this campaign, although shopping at one in mid-winter demands traditional British grit.