Report on successful conference in Norwich
PROFITING FROM PARTNERSHIP IN POTATOES
This event, organised by The Higgins Group, primarily for Eastern Counties growers, proved to be a great success for all who attended in the splendid surroundings of Barnham Broom Hotel, Norwich.
The conference was opened and chaired by Graeme Byers, Technical Director of Higgins.
The first speaker, Tim Papworth, a local potato grower, gave a description of his family farming in general and its potato enterprise in some detail.
This was followed by a number of speakers from the Heinz organisation who described their frozen potato business, its growth and their relationship with Higgins.
The final speaker was Bruce McKenzie from Syngenta Crop Protection, who gave an entertaining picture of world sustainability, followed by the current threat being posed by new EU legislation on chemical usage.
A more detailed summary of the presentations can be found below.
A large number of the press attended the event and reports can be found in Farmers Weekly, Eastern Daily Press and the next edition of Potato Review.
The party should then have visited seed and chemical trial plots planted locally.
However, a sustained downpour stopped this and instead various Syngenta personnel gave impromptu demonstrations and discussions of the latest products in their portfolio.
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PROFITING FROM PARTNERSHIP IN POTATOES
Graeme Byers, Higgins Technical Director
Graeme commenced proceedings with a short description of The Higgins Group, noting that they will be celebrating their 50th Anniversary in the potato industry in 2009.
He described the scale and scope of the business, commenting that they are now a very large grower of both seed and ware potatoes totalling in excess of 1000 hectares, as well as a vertically integrated business with substantial overseas operations.
Moving onto the theme of the conference, he acknowledged the substantial raw material cost increases suffered recently had to be met, to some degree, by increased prices. He pointed out, however, that UK businesses had to remain competitive and that all areas of the supply chain had to be examined to reduce cost and wastage. Simply increasing prices would damage sales and lose markets either to overseas competitors or alternative foods.
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PROFITING FROM PARTNERSHIP IN POTATOES
Tim Papworth, Director, L F Papworth Ltd
Tim initially described his family farming business and how it has changed and adapted to circumstances over the last 80+ years.
After showing a number of very interesting charts describing how the potato market has changed since 1960 he went on to present, in detail, the cost increases his potato operation have suffered since 2006. This was dramatically illustrated in his fuel and nitrogen which have doubled, and compound which has trebled in price. Rather than simply accepting these additional costs, Tim described various initiatives his business has introduced to reduce the impact in the growing, storage and marketing of his product.
Tim closed his session with a short presentation on the new Potato Council of which he is an elected member.
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HEINZ PRESENTATIONS
THE POTATO PRODUCTS MARKET WITHIN HEINZ
Jane Jones � Marketing Manager, Heinz
Janes� presentation began with figures showing the very positive trends of the frozen market moving from a 2% decline to a 6% value growth over 12 months. Within the sector of frozen potatoes, chips are the largest segment with 65% of the total, which is growing in value but flat in volume.
Aunt Bessie�s Potatoes are Heinz largest sector brand and continue to out-perform the market in volume and value, having reached a turnover of $106m.
Within Aunt Bessie�s, frozen mash has become a real star, following heavy promotion in Delia Smith�s �How to Cheat� cookbook and it is now the leading brand in that sector.
Jane concluded her presentation by emphasizing that Heinz are totally committed to the frozen potato sector and are investing heavily in capital, branding and innovation to deliver growth for the future.
THE WESTWICK FACTORY
Ian Rainford � Products Service Manager
Ian gave a short resum� of the history of the site up to the present day, showing volume growth figures over the past 7 years. He went on to explain in some detail how capital of �8.4 had recently been invested in Westwick and the expectations of increased volumes and efficiencies resulting from this.
He commented that the level of investment was one of the highest approved by Heinz worldwide and showed the commitment by the company to the products and brands manufactured at the site.
HOW WORKING WITH HEINZ CAN HELP YOU
Bryan Towell � European Buyer
Bryan traced how the Heinz potato buying policy had changed over the last 3 years from weekly e-auctions, with multiple suppliers, low inconsistent quality to a long term, sole supply contract with Higgins. This strategy had been devised to improve quality and traceability, to allow long term decisions to be enacted and to better risk manage supply.
Higgins was chosen as the supply partner because they possessed an understanding of the market and grower issues, was a large grower themselves and were prepared to invest in Joint Process Improvements. Bryan was able to highlight a number of successes the partnership had already produced and also listed areas where future effort was being directed. It is hoped that these initiatives will deliver cost savings or efficiencies which can be shared by all.
Finally, Bryan discussed the current price changes affecting agriculture, pointing out that whilst Heinz recognized some fundamentals had changed, such as the impact of bio-fuels and population growth in China and India, one could not dismiss the effect that hedge funds and speculators are having on prices.
His message was �We Need to Work Together to Succeed�.
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PROFITING FROM PARTNERSHIP IN POTATOES
Bruce McKenzie, Specialist Crops Team Leader,
Syngenta Crop Protection (UK) Ltd
Bruce described his presentation as �Sustainable Crop Protection in Processing Potatoes.� However, he opened his session with a worldwide review of how we are all guilty of stripping the planet of its natural resources and contributing to global climate change which, he maintains, is causing the current volatility and natural disasters which follow it. The message, loud and clear, is sustainability in all activities, including agriculture.
In potatoes he believes sustainability is being thwarted by bad EU legislation which, if approved, could have a dramatic impact on the chemicals allowed to be applied to potatoes and therefore the profitability and sustainability of potato production.
Bruce then touched on the controversial topic of generic alternative products. He pointed out that the major drug companies are investing substantial sums in R & D. Syngenta themselves have recently committed �100m in new UK manufacturing. If cheaper, unproven generic substitutes invade the market there will be no incentive for companies to continue such levels of investment.
Finally, Bruce gave some observations of how Syngenta is meeting the sustainability challenge by following legislation, reacting with new products and formulation, and supporting the industry with advice and new technology for weather and disease forecasting.