1. Friday, October 23, 2015 The Collaboration Journey of the Farming and Food Industry Hampshire Farming Conference 2011 David Neal-Smith European Food and Farming Partnerships LLP

2. Introduction to EFFP The Curry Commission  Started 2004  Reduction in agricultural support and protection  Vision of very different food chain structure -Needed farmer involvement -Balance to retailer dominance

3. Horizontal and vertical collaboration FARMERS CONSUMERS

4. Enter footer details The economy catches a cold? Friday, October 23, 2015

5. Enter footer details Price of food higher and more volatile Longer term analysis Key demand drivers Population & income growth Shifting diets Commodities for bio-fuels Key supply drivers Land availability Water availability Agricultural productivity Climate change Uncertainties Russian export ban Exchange rates Feedback loops Trade protection Correlation with oil prices Speculation

6. Food prices in perspective A century of grain prices Source: EFFP research The Great Depression The Second World War 1939 -1945 The Great Grain Robbery 1973 The Perfect Storm 2007

7. Enter footer details Affordability of food in perspective Consumer expenditure/retail food prices 30 40 50 60 70 100 80 90 1997199920012003200520072009201120132015201719871989199119931995 Index Negative scenario Positive scenario ‘Sombre decade’ 2010 onwards ‘Age of prosperity’ 1986 – 2007

8. b Friday, October 23, 2015 Strategic supply trinity Security, stability and sustainability

9. The agri-food supply chain Friday, October 23, 2015 Historically value focus at this end of the chain

10. Enter footer details Supply Chain Success – what does it look like?

11. Enter footer details Openfield and DHL – taking efficiency in logistics to a new level....... Openfield – the largest farmer controlled grain marketing business in the UK 4 million tonnes of combinable crops - 7000 farmers DHL Supply Chain – leading European logistics company working with EFFP to identify opportunities in agri-food supply chains Identified potential 20% saving in grain haulage road miles by operating a centralised ‘Control Tower’ for Openfield Operational from 2008 harvest 11

12. Enter footer details Arable growers – valuable long term collaboration with food manufacturers English Mustard Growers Co- operative working with Unilever to secure locally grown mustard for Colman’s 12 Potato producers collaborate to create dedicated crisping potato supply chain for United Biscuits

13. Enter footer details New supply chains helps sustainability for the hills..... ‘National Trust’ branded beef into Booths Yorkshire and Lancashire supermarket chain 13 Swaledale lambs from seven hill farmers providing seasonal lamb to ASDA

14. Enter footer details Sustainability benefits..... 14 Improved viability for hill farmers and farming Environmental benefits through upland management with grazing livestock Brand positioning opportunity for retailers whilst helping the agricultural industry

15. Enter footer details Large scale cooperative grain processing and storage leading to innovative marketing opportunities.... Started in 1983 by 60 Cambridgeshire farmers who built 12,000 tonne store at Linton Developed to 150,000 tonnes by 2005 with 300 members New store constructed at Wilbraham, opened in 2009 increasing processing and storage to 300,000 tonnes £20m invested including grant support through RDPE and earlier schemes Friday, October 23, 2015 15

16. Enter footer details Camgrain now supply all Sainsbury’s in store bakeries.... An innovative new supply chain with Sainsbury’s, providing 60,000 tonnes of regionally sourced milling wheat to 360 in store bakeries. Benefits of this partnership: Long term premium market for Camgrain farmers Platform to drive efficiencies within the supply chain A sustainable source of supply to Sainsburys A unique marketing proposition for Sainsburys; and Ability to forward plan 16

17. Enter footer details Key success factors….  Farmer investment  Scale & service achieved through a collaborative approach  Clear strategy – driven by the market needs and opportunities  Focus on the customer and the benefits that can be achieved  Resolving conflict!  Price premium to the farmer in return for those benefits to the customer 17