Colder weather of late is good news for fruit growers; all temperate fruits need a chill factor to ensure quality flower bud.
Temperate fruit and nut species require exposure to chilling conditions in winter to break dormancy and produce high yields. Adequate winter chill is an important site characteristic for commercial orchard operations, and quantifying chill is crucial for orchard management. Climate change may impact winter chill.
Below an extract from The English Apple Man Journal for 20th December 2013
"We need a cold winter with sufficient 'winter chill' to ensure an adequate 'set' next summer; an ideal chill is a period of 0-7 degrees C (45 Fahrenheit) for circa 1,000 hours. Below zero temperatures do not assist the 'winter chill physiology' hovering in the chill zone is the ideal scenario".
When we have a 'normal' season and the apples are off the tree in good time, a late start to winter will be beneficial as the tree continues to upload nutrients and IF this is coupled with a continuation of 'stable' low temperatures until spring time, the tree will be 'primed' for a good crop IF the weather is ideal at blossom time!
BIFGA Technical Day review
This week's English Apple Man Journal will review two of the presentations delivered at last week's Technical Day. John Noble of the British Brands Group presented an update on the Groceries Supply Code of Practice (GSCOP) while Robin Turney presented an update on the changes in European Grants
John Noble explained the GSCOP covers 10 designated grocery suppliers with sales in excess of £1 billion (each).
British Brands Group are a membership organisation dedicated to championing brands in the UK.
The Group was formed in 1994 to address the problem of parasitic copying, where competitors package their products to look like familiar branded products.Today it has grown into an organisation that champions brands and campaigns to create a climate in the UK where they can be born, grow and flourish successfully.
In 2000 John Noble met John Breach and `recognised John's passion for supporting UK producers' and in his role as 'Founder and Chairman' of British Independent Fruit Growers JB was able to ally his passion for the top fruit industry with his position as an 'independent voice' for the benefit of all UK top fruit growers. With growers and marketing desks in a 'cleft stick' relying on the volume capability of Supermarkets to sell their fruit, a reluctance to 'speak out' was understandable.
John Noble described John Breach as a 'mover and shaker' who has persistently championed the growers cause ......................
BBG organise a training scheme and a range of member services to help companies combat unfair trading practices and to ensure the GSCOP and Adjudicator are effective in delivering an efficient grocery supply chain.
This presentation has proved timely with the news this week that Tesco are being investigated by the Grocery Code Adjudicator - Christine Tacon said she had formed a "reasonable suspicion" that the retailer has breached supply guidelines.
She said she took the decision after considering information submitted to her following Tesco's profit over-statement last September.
Christine has discussed the practices with Tesco and will now seek more information from direct suppliers and others to determine what further action to take.
The investigation, the first to be held, is expected to take up to nine months, and the Adjudicator has called for evidence to be submitted by 3 April.
It will cover the conduct of Tesco plc from 25 June 2013 (when the GCA was created) to 5 February this year (2015)
A statement said: "The investigation will consider the existence and extent of practices which have resulted in delay in payments to suppliers. This will include in particular, but not be limited to, delay in payments associated with:
Short deliveries, including imposition of penalties.........................
:: Consumer complaints where the amounts were not agreed
:: Invoicing discrepancies such as duplicate invoicing where two invoices were issued for the same product
:: Deductions for unknown or un-agreed items
:: Deductions for promotional fixed costs (gate fees) that were incorrect
:: Deductions in relation to historic promotions which had not been agreed."
The investigation will also look into suppliers having to make payments for better positioning of goods on shelves which are not related to a promotion.
Initially the probe will be restricted to Tesco but could be expanded to include other supermarkets if warranted.
Ms Tacon said: "I have taken this decision after careful consideration of all the information submitted to me so far.
"I have applied the GCA published prioritisation principles to each of the practices under consideration and have evidence that they were not isolated incidents, each involving a number of suppliers and significant sums of money."
A Tesco spokesman said: "We have worked closely with the office of the Adjudicator since its creation to put in place strong compliance processes.
"We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers.
"We will continue to co-operate fully with the GCA as she carries out her investigation and welcome the opportunity for our suppliers to provide direct feedback."
So what is the GSCOP?
Click on The English Apple Man Journal for 26th July 2013 to read the launch of GCA.
Key aspects of the code are; Retailers should deal fairly and lawfully with their suppliers -The code will be based on written supply agreements - Provisions cover: supply chain, shrinkage, wastage, third party supply, promotions, customer complaints, de-listing - Staff to be trained annually - Retailers to appoint Code Compliance Officers - Duty to report and publish a summary. Not included: pricing, food safety, gang-masters,
The Code of Practice has been many years in the making;
The role of the Groceries code Adjudicator is to Arbitrate disputes, Investigate possible breaches of the GSCOP - apply Sanctions: recommendations - retailers to publish details / fine - Issue advice on how the GSCOP is to be interpreted - Report annually to CMA (Competition and Markets Authority) and Recommend changes to the GSCOP
Progress so far?
Christine has met extensively with industry and entered into three official case studies:
1. Charging for shelf positioning - Tesco (Jan 2014)
2. Payments for target service levels - Co-op (Mar 2014)
3. Payments for multi-channel participation - Morrison's (May 2014)
Two arbitrations
Annual supplier research
Five priority areas:
- Forensic auditing of historic promotions
- Deductions from trading accounts without written agreements
- Retailer forecasting leading to unrealistic demands
- Request for lump sum payments
- Charges for photography and pack designs
Christine has developed an open way of working, seeking a collaborative approach with CCO's, this way she can address more issues; her policy is to only investigate once collaboration has been exhausted.
Christine is prepared to publish clear case studies, while seeking a culture change by retailers, by keeping pressure on retailers via 5 priority areas.
The Code of Practice requires 'by law' to preserve supplier anonymity, but investigating non-compliance is heavily reliant on input from suppliers.
Back in 2013 Christine Tacon said; "do not expect every small complaint to be investigated. It will not happen, but when she receives a number (maybe 10) complaints of a similar nature relating to a retailer, action will take place" and investigation of mispractice may go to arbitration; the cost will be borne by the retailer and if the complaint is upheld, the retailer will pay a percentage of its turnover (could be £30 million) in compensation.
Recent comments on TV by Christine seemed to show frustration (albeit delivered with aplomb) as she has had the power to fine retailers for convening the COP but was still waiting for Government to sanction the scope (limit of any fines)
Christine Tacon told the BBC that despite this legislation, she could not force Tesco to pay a penalty, because the offences would have been committed before she was given the power to impose fines.
The English Apple Man Comments....
Apple growers have been in a David and Goliath situation for 15 - 20 years - before that the large retailers were desperate to encourage grows to turn their backs on Wholesale Markets and like 'Lemmings' we growers chased the better 'net' prices we received from Supermarkets; once the retailers had plenty of supply, the demands for 'higher specification' produce came first, followed by the 'white syndrome' e.g. Pack-houses closer to 'high risk prepared food' facilities, followed by pressure to deliver growing practices 'over and above' the legal requirement etc. etc. etc.......
Now none of these raised standards can be criticised for what they are; all are in the interest of GMP (Good Manufacturing Practice) and Consumer expectations, BUT they all have to be sustainable to the growers/packers/suppliers. That is the problem, the downward pressure on prices accompanied by the demands for higher supply standards has driven many growers out of the business.
In spite of the pressures on growers, we have re-invented the UK fruit industry, with large highly productive growing operations utilising science and technology to maximise efficiency; a fairer playing field would make this commitment to home grown produce sustainable for the benefit of UK producers and consumers alike.
Its optimistic, but David did eventually get the better of Goliath.......
Rural Business Grants Mr Robin Turney (Director, Robin Turney Ltd)
Click on Robin Turney Ltd to visit his website
Robin Turney Ltd. is an Independent Rural Business Consultancy
Producer Organisations ( PO)
The Fruit and Vegetable Regime was introduced in April 1997 throughout the EU as a scheme to help the fruit and vegetable industry become more efficient, more competitive in the supply chain and more environmentally friendly. Today approximately 40 PO's are operating in the UK and it is reported that these account for an estimated 50% of the turnover of marketed fresh fruit and vegetables in the UK.
In his presentation Robin Turney demonstrated how the PO's are eligible for EU funding
Robin Turney has had particular success in obtaining significant grant funding over recent years through the England Rural Development Programme and the EU Fruit and Vegetable regime. He helped clients in East Anglia, the Midlands and the South East obtain grant funding for a range of projects including Pack-houses, Cold Stores, Rainwater Harvesting, Reservoirs, Farm Shops and Anaerobic Digestion Plants, with RDP grants from £20,000 to £2 million totaling £14 million of grants for clients.
Below a passage from The Robin Turley website
"Producer Organisations (POs) are effectively "co-operatives" which are recognised under the regime and can qualify for financial assistance towards the cost of a structured plan called an operational programme. The aim of an operational programme is to improve the PO's product quality, environmental performance and skills in marketing. The list of crops covered by the Regime is extensive but certain crops, most notably potatoes, are excluded. To secure recognition a PO must have at least 5 grower members and an annual turnover of at least 1 million Euros (just under £700,000 at current exchange rate). Operational programmes can last for 3 to 5 calendar years. They must be financed in the first instance by an operational fund - an account set up by the PO to hold contributions from its members based on the turnover of products for which recognition has been granted. The programme will comprise both compulsory elements, aimed at improving the business, while employing environmentally sound cultivation practices and the management of waste materials.
Robin briefed the BIFGA member on changes to the funding programme; the new one will run from 1st January 2015 - 31st December 20120. This programme replaces previous RDP which ran from 2007 - 2013.
The new programme is open to applications from Spring 2015 with a total Budget of £3.5 billion; Eu £2.5 billion + UK Exchequer £1 billion.
Rural Development Programme for England (RDPE)
Grant funding for rural projects is now administered nationally under the RDPE by the nine Rural Development Agencies (RDAs) specific to the regions we operate in. Robin said, we have considerable experience of working with key personnel responsible for administering the funding schemes and are well placed to advise clients on funding availability, assist with Expression of Interest forms, advise on local RDA criteria for targeted funding and ultimately prepare grant applications and business plans..........
The English Apple Man Comments
EU funding has enabled valuable investment in many produce sectors ensuring the supply of home grown fruit and vegetables and investment in the environment creating production procedures which are sustainable in the countryside. The procedural complexity needs the input of experts like Robin Turley when growers are developing their 'matched funding' plans.
That is all for this week; next week The English Apple Man will cover more aspects of the BIFGA Technical Day.....
Take care
The English Apple Man