The English Apple Man attends the 30th Annual BIFGA Technical Day...........
Dale Hill Hotel & Golf Club has been the venue since 2012. An ideal venue strategically, with excellent facilities. Click on Dale Hill Golf Club and Hotel
Following on from the Agrovista Conference the previous week, some subjects were covered in both events, although each offered a different viewpoint.
I have chosen to open this week's Journal with a marketing presentation by Dan Barker - Avalon Produce Ltd (APL)
Dan looked at The Challenges of supplying high street retailers highlighting the Changing face of the Marketplace; Dan reminded delegates; "The customer is always right" - CONVENIENCE stores are high on the list and while there is strong desire for home produced products, it does not 'come at any price' with so much more consumer choice and strong growth in alternative fruit categories, as an industry we are doing well to maintain the sales volume....
A changing demographic with exposure to the rest of the world, seasonality no longer exists.........it's now a 52 week lifestyle........consistency of supply and an aversion to waste are the key factors....
The old trading mentality is in the past; retailers are working in partnership with their suppliers.........
Driving cost out of the supply chain is paramount.........
Below: The market place is changing fast..........
Dan drew on the example of New Zealand fruit growers; even with their favourable climate, their customer base has changed from majoring on Europe to Asia and competition dictates the price/quality equation is key.....Asia with it's increasing wealth has 'changed the game' - In many years NZ growers oversupplied the European Market, often with disastrous effects on prices when the last NZ fruit overlapped the start of the European season.
Below: In the slide below the New Zealand production profile has changed dramatically between 2004 and 2017 the production area has dropped by 30% but fruit produced is only 3% down in-spite of the decrease in orchard area. Tonnage per hectare has risen by 49% and the distribution profile; Europe (blue) v Asia (brown) shows the change in marketing strategy.
Among the critical criteria required to satisfy the current market (the retailer and consumer) is the size profile. In last week's English Apple Man Journal, the subject of optimum size profile was demonstrated eloquently by John Portass; equally eloquent, Dan Barker held up the natural size range for an apple variety (left to it's own natural devices) from 'small to very large' and the 'tighter parameters of today's market demands.
Dan Barker, posed the question: "what can we do? - Identify what the customer wants; target the customer(s) that work for your business - communicate with the customer and influence decisions - explain the situation accurately and early - find alternate markets - target the right product to the best market and value - NPD (new product development) - Point of Difference - New varieties eg. Stardance; Cabaret - New methods eg. DCA Storage, New Nursery methods - Keep on step ahead, know the market place - Optimise every opportunity!
The market place today is much more collaborative between suppliers and retailers; a marked change from the 'trading mentality' of the past......
Following Dan Barker's marketing presentation. APL Chief Technical Officer - Nigel Jenner reviewed the 2017 season's weather influence on harvest dates and fruit quality.........
Below: Seasonal Variations; Harvest date - 2017 v 10 year average
While the information above demonstrates the much earlier season with varieties generally 1-2 weeks earlier than the 10 year average; Braeburn a late variety was actually 3 weeks earlier. The variability within samples was extreme, as indicated by the variable starch pattern..........
Below: The variability has resulted in some extreme results - variation in fruit pressures (firmness) variation in Brix (sugars) lower average pressures (fruit firmness) later picked fruit losing brix (sweetness)
The reasons behind this season's extreme variability can be explained by cold weather affecting individual trees differently, general lack of thinning due to frost damage, cool conditions at blossom leading to retracted flowering.
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Grocery Code Adjudicator
For many years growers have complained of the unfair practices of our retailers. Four years ago Government put in place a Grocery Code Adjudicator with the power to fine any proven unfair practices by high street retailers.
Below: Christine Tacon - The Grocery Code Adjudicator
The Groceries Code Adjudicator is the independent regulator ensuring that the ten large supermarkets treat their direct suppliers lawfully and fairly.
Below: Examples of supplier concerns over unfair practices........
Christine emphasised the importance of suppliers knowing the code when retailers make certain requests........like "I need help to reach my half-year target I am £200k short in your category and I need you to make up the difference........"from tomorrow I am instigating a £10 per case charge for any case that is rejected in depot......."If you want to keep the business for the rest of your contract, you need to pay me £100k....
Below: Over the 4 years, Christine Tacon demonstrates the improvement in unfair practices - 'year on year'
Below: Overall retailer performance......
For a comprehensive view of Christine Tacon's role click on: The Grocery Code Adjudicator
Click on BIFGA for more information.............
That is all for this week...........
Take care
The English Apple Man