Press
Release
12 August 2011
From pasture to
plate: Study shows British farmers can find fortune in
foodservice
British farmers, who dig deep to nurture ingenious brand
building strategies, can boost the uptake of their produce by
foodservice operators and capitalise on a portion of the UK food
and beverage market worth £40bn a year, reveals an award-winning
report by Nuffield Farming Scholar and Managing Director of
catering procurement specialist Partners In Purchasing (PIP),
Diana Spellman.
With a scholarship from Nuffield Farming Scholarship Trust under
her wing, together with the support of HSBC, Spellman has
embarked on a four-year exploration of trading relationships and
of the economics, choices and attitudes of the farming community
in the UK, Germany, Holland, Italy and the USA, intent on
finding solutions to British farmers’ frustration at their
inability to influence the factors that determined their
revenues.
As a food broker within the foodservice supply chain – which
incorporates such operators as restaurants, hotels, schools,
hospitals and leisure centres – she challenged herself to
deliver a series of guidelines for farmer producers of finished
goods which helps them examine the commercial viability of their
product and recognise foodservice as a workable route to market.
“The biggest barrier to commercial success in the food supply
chain was a lack of understanding among different stakeholders
of how other sections of the supply chain worked,” says
Spellman. “For our clients, exclusive and premium products,
quality ingredients and the service of delivery are the most
important criteria when considering a supplier. Price is
relevant, but only in terms of value for money.”
For every Pound spent in the UK, 38p goes on food, so producers
more adept with a retail environment should understand how to
effectively adapt their production and distribution to suit the
foodservice sector and seize new trading opportunities.
Identifying consumer preferences and the motivations of other
players in the supply equation can be achieved through continual
market research.
Supermarket chains are a power to be reckoned with, says
Spellman, often imposing their own production rules in order to
maximise their own profit. Farmers with only one source of
revenue have no other outlet for their produce and must often
surrender to supermarket demands to sell their produce,
culminating in unfavourable terms or even losses. Foodservice is
a viable alternative, but common perceptions are that
foodservice is too small, fragmented and that it is difficult to
set up profitable supply chains. This report challenges these
views.
Consumers in the foodservice market place have been sending
strong signals to food buyers that they want to eat safe food.
Where has it come from and how has it been produced? The
corporate staff dining market place is an ideal market for the
emerging producer to test new products, where companies are
supplying 1.5bn meals to employees. Mastering tricks of trade in
this supply chain could eventually open doors to the wider 8.7
billion-meals-a-year foodservice market, creating the
opportunity for farmers to benefit from high volume orders and
long-term business sustainability.
Indigenous food consumption has dropped from 85% to 65% over 18
years and production of all food has dropped from 75% to 60%,
but with the UK’s favourable climate for growing orchard crops
and the technological advancements to create new varieties and
attributes that will strengthen Britain’s competitive position,
Spellman tells of a huge opportunity to capture consumer demand
for locally produced fruit and claw back market share lost to
New Zealand and South Africa.
Traditionally, Nuffield studies have sought to unearth best
practice overseas, but Spellman’s breakthrough report –
“Exploring how British farmers can develop a brand to market
their produce to foodservice” – divulges revealing examples of
thriving agricultural practices right here in the UK, despite
stiff competition from imports of finished goods. She tells of
tried and tested means to instil consumer confidence via
recognised endorsement schemes like LEAF and Red Tractor and
unravels the delicate art of product pricing to attract
investment and generate profits.
Rewarding Diana Spellman with a Highly Commended Award for the
quality of research and innovation delivered in her study and
report, Nuffield UK Chairman, Tony Pexton OBE NSch said: “I
don’t normally “mark high” but I feel that this report opens a
very important door and offers constructive help on walking
through it.”
“Exploring how British farmers can develop a brand to market
their produce to foodservice",
can be accessed via the Partners In
Purchasing website under Press Releases
http://www.pipltd.net
Alternatively, download the PDF using this link:
http://www.pipltd.net/Diana_Spellman_Nuffield_Report_2006.pdf
- Ends -
NOTES TO EDITOR
About Partners in
Purchasing
Partners in Purchasing
Ltd (PIP) was founded in 1997 by Diana Spellman and Nirmal
Kalsey and has built a strong reputation as the leading catering
procurement specialist in the UK. The company’s core values of
trust, integrity and confidentiality are widely embraced in the
day-to-day ethos of its operations and they are testament to its
broad base of clients, which include blue chip financial
institutions, independent contract caterers, universities,
Government offices and residential/nursing homes. PIP works
closely with UK suppliers, carefully selected for their high
standards of hygiene, health and safety, quality and
environmental awareness, to effectively manage product sourcing
at preferential rates, to monitor pricing and to offer central
billing and detailed purchase analysis. Partners In Purchasing
Ltd is a member of the British Hospitality Association (BHA),
the Institute of Hospitality, British Institute of Facilities
Management (BIFM), the Association for Catering Excellence (ACE)
and Arena.
Any feedback or
questions related to Diana Spellman’s report can be addressed to
her personally at
diana@pipltd.net.
http://www.pipltd.net
About the Nuffield
Farming Scholarships Trust
In the aftermath of the Second World War, industrialist and
philanthropist Lord Nuffield initiated a travelling scholarship
scheme for British and Empire farmers, in recognition of their
contribution to feeding the nation through the war, and as a
method of advancing and promoting the best agriculturalist
practice around the world. Amongst the worldwide bodies that now
support Nuffield Scholars are associations in Australia, Canada,
France, New Zealand, Republic of Ireland and Zimbabwe, all of
which fund their own Award scheme programme. Each year, the
seven countries participating in the charitable scheme award
approximately 50 scholarships to young agriculturalists. Since
1947, the Trust has grown from its UK roots to become a truly
international organisation forming a strong network of some 800
Scholars in the UK and over 1,000 worldwide.
To find out more
about the Nuffield Agricultural Trust, contact:
John Stones NSch
Director
Blaston Lodge, Blaston, Market Harborough, Leicestershire, LE16
8DB
Tel: 01858 55 55 44
Fax: 01858 55 55 56
Mob: 07754 852 188
Email:
nuffielddirector@aol.com
http://www.nuffieldinternational.org
http://www.nuffieldscholar.org
For media enquiries,
contact:
Petra Clayton
ClaytonGiles Ltd.
The Mayford Centre, Mayford Green, Woking, Surrey, GU22 0PP
T: 01483 740747
E:
petra@claytongiles.co.uk