We are urgently developing research requirements with other European laboratories to make sure we understand and the disease (Schmallenberg) better.Collaboration key to taking more out of supply chain
COLLABORATION and growth are key to developing successful farming businesses, delegates were told at the 19th Cheshire Farming Conference, held in Delamere.
Kicking off the debate on Collaborating for Success, chief executive of the English Food and Farming Partnership Sion Roberts argued collaboration was about ‘creating and capturing value'.
He said while the UK food market had seen phenomenal growth over the last decade, farming’s share of that market had not really increased. Farmers had to find a way of taking more income out of the supply chain and this could only happen through collaboration.
They needed to work together to form supply groups but they also had to collaborate vertically within the chain to gain a greater share of the retail price.
However, he said the most successful collaborations only happened when there was real trust between all parties and this had to be worked at like any other relationship in life.
Finally, he pointed out agriculture had a real advantage in starting to work together now because its customers were starting to realise the importance of their supply base.
David Warrington managing director of NWF’s feed division, arguing against collaboration, said farmers needed scale.
NWF had grown from producing 15 tonnes of feed 15 years ago to now producing 50,000t. The turning point was at a US conference where he learnt the three things top US businesses had in common.
"They made a good product, they operated on very skinny margins and they made shed loads of it."
He said change was certain and farmers had to be prepared to deal with its scale and pace.
His message to the conference was blunt: "That’s your job, do it." He believed it was possible, but if costs were higher than profit, it was time for any business to get out.
He also argued co-operatives had the potential to make bad business decisions for the greater good of the membership. "You have to have autonomous responsibility."
During questions both men seemed to reach agreement. While Mr Roberts said farmers had to get bigger, Mr Waddington conceded a group of farmers talking to suppliers would have more bargaining power than one.
Source:
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