CAVLP Orchard Products Market Study

CAVLP Orchard Products Market Study Incorporating an examination of establishing the Clyde Valley as a Brand

Prepared for:

Chris Parkin The Rural Development Trust Ltd Offices Level 1 Robert Owen's School New Lanark ML11 9DB

Prepared by:

SAC Food & Drink

Date:

14 August 2013

Table of Contents

Page

EXECUTIVE SUMMARY

3

PURPOSE OF THE STUDY

5

INTRODUCTION

7

OTHER HERITAGE ORCHARD GROUPS

9

POTENTIAL PRODUCTS AND MARKETS

12

Fresh Fruit Market

12

Cider Market

15

Apple Juice

24

Preserves

27

Apples Snacking Products

31

ESTABLISHING A FOOD & DRINK BUSINESS

32

Local Authority

32

Waste Disposal

33

Training

34

HACCP

34

Food Hygiene

35

BRAND DEVELOPMENT

37

Brand definition

37

Brand Development

38

Brand Development Template

39

Brand Champion

40

A Clyde Valley Brand

40

Protected Food Names (PFN)

41

ORCHARD DEVELOPMENT

43

Developing the Orchards

43

Funding Sources

47

1

Tourism Opportunities

53

CONCLUSION

56

APPENDIX 1

57

2

Executive Summary 

This report investigates the marketing opportunities for potential added value products for the Clyde Valley Orchard Group. It also examines the feasibility and desirability of developing a Clyde Valley Orchard brand



Previous surveys and reports have identified the potential for regenerating the Clyde Valley orchards and discussions with several orchard owners have shown willingness to co-operate.

However, in order to revitalise the orchards a

commercial value has to be found for its fruit, particularly through added-value products 

Due to the number and abilities of orchard owners the amount of fruit available for commercial use is currently very low. There are a handful of owners who manage their orchards on a commercial basis, a few others who sell fruit for a bit of pin money while the rest is either given away, used by the growers or left to rot.



Realising any commercial value in the short term will require co-operation amongst many of the larger growers in order to provide enough volume of fruit to make value-added processing worthwhile. In the longer term, if markets can be successfully established, there will be potential for some growers to plant new orchards.



There has been an increasing interest amongst consumers in the last few years in the provenance of the food they eat and the way in which it is produced, which in turn has lead to an increase in the sales of local foods. Products from the Clyde Valley Orchard would be ideally situated to exploit these trends.



As a heritage orchard, Clyde Valley Orchard also has the potential to exploit the growth in Rural Heritage Tourism through Open Days and Markets that will both produce extra income and provide an opportunity to sell fruit and products.

3



Due to the relatively small volumes of fruit currently available, three possible valued-added products, Juice, Cider and Preserves, have been identified and investigated with potential collaborative partners identified and approached. In each case the collaborative partner is willing to discuss the possibilities further.



The potential and mechanism for creating a Clyde Valley Orchard brand is also examined. However, discussions with David Craig at Clyde Valley Tomatoes revealed that he has structured his brand in such a way that other products from the Clyde Valley can be added to the ‘brand family’. He appears very supportive of any initiative with the Clyde Valley Orchard and could help with marketing and distribution. With David’s retail experience, this would seem to be an ideal solution but would be subject to further negotiation and agreement.



There is a real opportunity to develop added-value products from the Clyde Valley Orchard but, because of the current state of the orchards and the nature of expanding fruit production, it is going to take several years to create a business of a significant size. However, the current market conditions make this an ideal time to begin if there is willingness amongst enough of the producers.

4

Purpose of the Study This study has been commissioned to support the implementation of the Heritage Lottery Fund Landscape Partnership Programme covering the CAVLP, the main aim of which is to conserve and enhance the landscape of the Clyde and Avon Valleys. The work will inform the support framework being established to secure the revival of the orchards as a key feature of the Valley landscape.

The objective of the study is to identify specific and potential markets and development opportunities for Clyde Valley orchard produce and products alongside the establishment of a Clyde Valley brand. It considers the nature of existing orchard produce and identifies some of the potential markets and added value opportunities. It also examines the creation of a brand for Clyde Valley produce and the value of applying for PGI status.

The main outputs for the project will be:

1. An understanding of market opportunities for existing Valley produce and identification of opportunities to grow new produce 2. Recommendations on the value, nature and management of a Clyde Valley brand 3. Advice on creating and managing a voluntary local environmental standard, possibly linked to a brand 4. Practical guidance on establishing small scale food processing enterprises including legal and health and safety requirements and product storage 5. Recommendations on collaborative opportunities with other fruit growing areas

It is understood the outputs will be used by two main groups: 1.) the Project Team, in order to inform the specific funding requirements for enterprise development and 2.) orchard owners, to shape business operations and future collaboration and diversification opportunities.

The importance of orchards to the valley landscape is recognised as being considerable. Businesses capable of contributing to the sustainable development of orchards are seen as pivotal to the process of local orchard regeneration. If this approach is to be successful it is important that a full understanding of issues and opportunities is available to direct both Partnership and private investment. The study therefore is expected: 5



To raise awareness of the business opportunities available through adding value to local produce



To highlight the profitability that can be achieved by adding value to and successfully marketing local produce



To increase knowledge and understanding of direct marketing and the systems through which this can be applied



The development of skills - understanding of the requirements of operating a food based business, how to sell and how to engage with the customer



To identify best practice in successful adding value enterprises



To identify opportunities for collaboration amongst producers, retailers, the tourism sector and foodservice operators



To provide an understanding of retailer attitudes to fluctuating supply and demand of perishable produce

6

Introduction A study undertaken in 2011 indicates that most of the remaining orchards are in private ownership and vary in size from a handful to several dozen trees.

Very few are

managed on commercial basis and in most cases the fruit is picked for private use or is left unpicked and allowed to rot in the orchard. A few sell fruit at the gate or through local outlets including farm and community shops but in general the output from the orchards is underexploited.

The total Clyde Valley Orchard comprises of approximately 70 individual orchards which comprise mainly of cooking and eating Apples, Pears, Plums and Damsons with some orchards containing all these species while others confined to only one or two. The Clyde Valley Orchard Group consists of 15 growers and although there is interest in collaboration amongst a significant number of the other growers it is this group that will need to drive any initiative forward.

Results from the 2011 survey indicate that plums account for about 60% of the fruit produced in the Clyde Valley Orchards. It also identified a wide range of varieties being grown in all the species, including some rare local varieties but highlighted the fact that, apart from the few orchards that are managed, the trees are generally in poor condition and are consequently not as productive as they potentially could be.

Figures from the survey give a total estimated yield from the orchards in the Valley as: Plums

2.0 – 3.0 tonnes

Damsons

1.2 – 2.0 tonnes

Pears

3.5 – 5.5 tonnes

Apples

2.0 – 3.0 tonnes

However, the survey also indicates that only a small quantity of these yields is used for commercial purposes and a large majority probably goes to waste, so even the potential volumes available for commercial use are higher than is currently realised.

It appears that the neglect of the orchards is generally down to two main factors: 

The inability of the owners to cope with the work involved, due either to old age or incapacity, lack of knowledge and/or the expense of maintenance.



The lack of a ready market for the fruit.

7

This study sets out to help with the second of these points by examining and analysing potential markets and added value opportunities.

There are a number of factors highlighted in the previous studies that will influence the possible market opportunities including: 

The current lack of co-operation and co-ordination amongst the orchard owners which means that marketing is piecemeal, quantities available are small and therefore supply limited and quality is variable. All of which are negative factors to the majority of potential customers.



The number of orchard owners. Generally customers prefer to deal with one point of contact as the management of a number of individual accounts is time consuming and costly.



The poor state of many of the trees and orchards.

The vast majority of the

orchards are now part of private dwellings and not run as commercial enterprises.

Many of the owners either cannot carry out the necessary maintenance work due to old age or lack of time, while others have no interest or the necessary knowledge. 

In order to preserve the orchard as a landscape feature there needs to be some commercial value derived from the produce. Without some action there is a real danger that the orchards will disappear in the foreseeable future.

8

Other Heritage Orchard Groups There are a number of heritage orchard groups in Scotland and the rest of the UK. Many of these are concerned with preservation and regeneration of traditional heritage orchards but there are also an increasing number of local groups being established to plant new community orchards.

It appears from the research that groups similar to the Clyde Valley Orchard Group, concerned with preserving and regenerating heritage orchards, concentrate mainly on generally making the orchards more sustainable by: 

improving management of existing trees and orchards,



training orchard owners and volunteers in skill orchard skills,



preservation of old and traditional varieties,



improving the productivity of existing trees,



removing dead and planting new trees

Some groups own equipment which they lend or loan to orchard owners for seasonal maintenance tasks, such as pruning and harvesting. A few include a small hand press for pressing apple juice in their list of equipment but this does not appear to be universally common.

The following is a brief summary of Orchard groups in Scotland and the rest of the UK with some of the activities they organise throughout the year. Unfortunately many of the websites require updating hence some of this data is limited.

SCOTLAND • Carse of Gowrie historic orchards forum- Orchard Festival with guided walks and fruit pressing • Central Core Network • Clyde Valley Orchards- conservation talks and annual cider competitions • Forth Valley Orchards- Workshops, and training classes • Scottish Orchards Group • The Children's Orchard & Commonwealth Orchard • Newburgh Orchard Group- Pruning and Grafting classes, Recipe Exchange Evening and Apple Markets Scottish Orchard Festival Week - 29th September to 7th October WALES • The Tree Fruit Society of Wales

9

ENGLAND North West • Cheshire Orchards Project • North Cumbria Orchard Group- Summer Orchard Open Days • South Lakeland Orchard Group- Orchard Open Days and budding and pruning workshops • Westmorland Damson Association • Yorkshire and Humber • Northern Fruit Group- Visits and workshops East Midlands • The Sherwood Forest Trust • Leicestershire Heritage Apple West Midlands • Gloucestershire Orchard Group- Budding workshops and Cider Making Days • Marcher Apple Network- Apple Fair, Cider Making Festival, Apple Day activities, training such as apple identification and pruning courses • Mid-Shires Orchard Group- Apple Day- lots of tastings and activities, pruning, grafting and budding courses • Shropshire Apple Trust- Apple Day including tastings, activities music and demonstrations East of England • Bedfordshire and Luton Orchard Group • Cambridge Orchard Group • East of England Apples & Orchards Project • Hertfordshire Orchard Initiative (HOI)- Apple day with a month of activities • Rivers Nursery Site & Orchard Group- Community Apple Picking Day, conservation tasks, Apple Day celebrations South East • Kentish Cobnuts Association- Pruning Demonstration • The London Orchard Project- London Orchard Festival with music, cider, and demonstrations South West • Cornwall Orchard Project • Orchard Link (Devon)- Hiring of pressing equipment and training days • Orchards Live (Devon)- Pruning and grafting courses • Somerset County Council- Orchard Celebration Days, Apple Days • South Gloucestershire • Symondsbury Apple Project • Wiltshire Traditional Orchard Project From: www.orchardnetwork.org.uk

Although many of these groups appear to be very active there is little evidence of collaborative added-value production. Most of the groups are concerned with the

10

preservation and restoration of the traditional orchards, in general leaving the addedvalue activities to entrepreneurial individuals within the group.

A few groups, including The Shropshire Apple Trust, own equipment, including smallscale presses that members can hire to process their own fruit. The Shropshire Apple Trust also arranges fruit storage for their members – see the poster in Appendix 1.

There would be merit in the group talking to some of the other Heritage groups in Scotland to see whether there is any potential for joint working in such areas as events, training and during Scottish Orchard Festival Week, particularly the Forth Valley and Newburgh Groups as these appear to be the most active and innovative.

There may also be some potential in looking at joint ventures in marketing fruit from the orchards in the future, particularly once markets have been developed and a single orchard cannot supply demand but the affect this may have on the integrity of the Clyde Valley brand needs to be considered in such a move.

In this instance it may be

preferable to develop a separate joint brand for certain products e.g.. apple juice, while retaining the Clyde Valley brand for other products e.g. fresh fruit and preserves, to avoid the problem of the joint brand competing with the Clyde Valley brand.

There could be considerable merit in collaborating with other heritage orchards in running combined events and marketing products but the details and any branding issues can only be considered in detail at the time any formal discussions take place and all the facts and objectives are known.

11

Potential Products and Markets Information gathered for the 2011 Orchard Survey indicates that four main fruits could be available in significant quantities to encourage added-value processing: apples, plums, pears and damsons. Of these plums make up about 60% of the tree numbers but due to the short ripening period are the more difficult crop harvest and handle. With a larger range of apple varieties, each with different ripening times and the ability to store for several months in the right conditions,, apples and pears provide a more flexible fruit for processing into a value added product.

Currently it appears that harvested fruit is used by the owners of the orchards or given away (and occasionally sold) to neighbours and the local community. It was noted that a few do sell some whole fruit to local farms and community shops but in many cases it appears there is little or no commercial added-value processing taking place by growers within the Clyde Valley Orchard. This is mainly due to: 

The dispersed nature of ownership of the various orchards within the area.



The small scale of the majority of the orchards



The costs involved in investing in processing equipment and premises



A lack of quantity of fruit from any one producer to make processing worthwhile



A lack of knowledge of the requirements of the potential market and processing operations



A lack of motivation due to factors such as the age of the growers, time, or interest in starting a processing operation

There are a number of options for marketing each of the fruits produced in the Clyde Valley Orchard so it is most practical to consider and analyse each separately.

Fresh Fruit Market “As the ‘5-a-day’ message has been around for over 10 years, the problem seems to be that consumers have stopped taking it seriously. Yet health remains the industry’s trump card which it must continue to play, re-engaging the consumers with the 5-a-day message.”Kiti Soininen, Mintel, Head of UK Food, Drink & Foodservice Research

12

Fruit and vegetables is a market of significant size and maturity, relying on high frequency of consumption and innovation driving value within the individual sectors.

Value sales grew by 26% between 2006 and 2011 to reach an estimated £14.5 billion.

An underlying decline of 4% for the period at constant prices, however, reflects the impact price inflation has had in driving value sales.

Fresh fruit and vegetables continue to overshadow other sectors in the market, accounting for more than four fifths of total spending, with salads, potatoes and green vegetables leading the way. Fruit overall grew by an estimated 9.5% between 2009 and 2011. Fresh prepared fruit is also a growth sector which is expected to benefit from improved consumer confidence as the economy slowly recovers.

The long-term focus on healthy eating by both government and industry will aim to ensure sustained consumer interest in the fruit and vegetable market. The strong demand for convenience should support added value sectors like bagged salads, precut fruit and resealable freezer packs once consumer confidence regains momentum, though NPD will partly dictate the growth in these areas.

Types of fruit bought in a typical week

Source: Toluna/Mintel, 2011

13

Fruit and vegetables enjoy almost universal usage; some 99% of consumers buy fruit and vegetables on a weekly basis. Yet almost one in three consumers struggles to eat the recommended five portions of fruit and vegetables every day.

One of the market’s core challenges is therefore to drive frequency of consumption among users. Over-55s may be among the most enthusiastic fruit eaters but they tend to be unadventurous when it comes to eating fruit and vegetables on different meal or snack occasions, suggesting opportunities to grow usage among this growing group by expanding their usage repertoire.

At-home snacking is the most popular usage for fresh and dried fruit, the majority of those buying each type using them in this way, highlighting the progress made in encouraging consumers to swap other snacks for fruit as a healthier alternative.

Attitudes towards fruit and vegetables

Source: Toluna/Mintel, 2011

Half of consumers are prepared to pay more for locally-produced fruit and vegetables.

This is the highest response and outweighs enthusiasm for fair-trade (40%) or organic produce (27%).

The emotional connection with local food and local jobs combined with food scares such as E. coli helps to reinforce enthusiasm for UK food. Some fresh produce packaging (also meat and poultry) now has the name of the local farm and/or farmer to intensify this connection and build trust in the brand.

14

The immediate strategy for CAVLP regarding fresh fruit should be to source local outlets that may be in position to purchase as and when the crops ripen. Lanarkshire Food & Health are always keen to promote local produce and would be in a position to supply to a relatively large number of outlets in Lanarkshire. Alternatively Craigie’s Farm shop have also expressed an interest in sourcing local fruit especially plums for their jam production.

The longer term strategy would be to seek markets further afield but the end product would need to be suitable for these markets and would require the need for picking, grading, packing and marketing capabilities within the valley.

Cider Market While many drinks markets are struggling to grow in real terms and are also hampered by the government’s tax escalator, cider is one of the few success stories showing volume growth. Usage of cider has flourished in recent years as the market has improved its image, with strong growth in the premium market.

Cider operators are also in the envious position of enjoying a comparatively lenient taxation, something which should help brands to keep prices under control. The launch of Stella Cidre has been credited with bringing new users into the market; the transference of a beer brand into the cider market may be a sign of things to come as the markets move closer to one another.

According to Mintel the success of cider looks set to continue in the coming years, with new producers continuing to gather momentum and strong consumer demand leading to a better range of ciders in both the on- and off-trade sales channels.

Volume sales are posting slow growth, slightly gaining momentum in 2012 to reach 884 million litres, a trend expected to continue over the coming five years. Inflation and trading up have fuelled faster growth in value sales, reaching £2.69 billion in 2012, with the market forecast to see slower growth going forward to £3.7 billion by 2017, driven by duty increases but also growing user numbers.

15

Total market value of cider, 2007-17 5,000 4,500

Best case (£m) 4,289

Market value (£m)

4,000

Mintel forecast (£m) 3,698

3,500

Worst case (£m) 3,107

(£m) 2,688

3,000 2,500 2,000 1,500 1,000

Confidence intervals

500

95%

00 2007

90% 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Est. Actual

Forecast

70% 50%

Source: GMI/Mintel, 2012

Strengths of the Cider Market 

Cider continues to be one of the few drinks markets with increasing usage, up to 60% in 2012.



Cider brands are notable investors in advertising and innovation, helping to boost awareness and attract new users to drink cider.



As well as appealing to both genders, the market is also effective in appealing to younger drinkers who often look for accessible and fashionable drinks.



Expected increases in the numbers of 25-34-year-olds, who are notable groups of users, within the next five years are set to have a positive impact upon sales in the cider market.



Fruit-flavoured cider is in its relative infancy with considerable scope for growth to continue.



Cider enjoys particularly strong associations to refreshment, summer drinking, being easy to drink and suitable for men and women alike.



There is strong interest among current users in new flavours, formats and types of cider.

16

Types of cider consumed 75 60 47

% usage

50

37 24

25

19

16

16

11

10

8

0

Source: GMI/Mintel, 2012



The success of Stella Cidre shows how there is still a great deal of potential in the market, with this brand bringing a number of new drinkers into the category.



Almost half of cider drinkers are happy to pay more for premium ciders, an encouraging indicator of consumer enthusiasm towards the market despite continued economic difficulties.

Attitudes towards cider 63

I expect bottled ciders to taste better than those in a can I would be interested in trying cider from a box/keg if it was of high quality

59

I like to try many different brands and flavours of ciders

56

I would like to see a better range of craft ciders in supermarkets and pubs/restaurants I would be open to trying ciders with more adventurous flavours (eg cloudberry, toffee apple)

51

I think that British ciders taste better than foreign varieties

50

I am happy to pay more for premium ciders (eg Aspall, Kopparberg)

47 46

I am open to drinking no/low-alcohol ciders

45

33

I would like to see more mulled ciders available

0%

41

9

33

20

37

17

23

32

40

21 23

48

Neither agree nor disagree

10 24

44

25%

17

35 25

33

I think that draught ciders taste better than bottled ones

11

27

39

Own-label ciders taste as good as branded varieties

10

31

56

I prefer fizzy ciders to still/cloudy varieties

Any agree

27

50%

19 75%

100%

Any disagree

Source: GMI/Mintel, 2012

17

Weaknesses of the Cider Market 

An ageing population and growth in the E socio-economic group pose threats to the market, as both are among the least likely groups to drink cider, based largely on health and financial considerations.



Despite being the leading choice factor, brand name carries limited weight when buying cider, cited by just 46% of users as one of their main drivers when purchasing.



The market’s strong associations to summer and being a refreshing drink mean that usage drops off notably over the colder months.



A lack of front of mind awareness of cider is the main barrier to usage among drinkers and non-drinkers alike.



The burgeoning fruit-flavoured segment is of limited appeal to older drinkers who are a rapidly growing group and likely to have the greatest levels of disposable income.



While the sweetness of cider is a plus for many adults, many others see it as a negative, likely leading cider to not be seen as a drink to stick with over the course of an evening.



Cider discounting and sub-£1 bottles are gaining momentum, threatening the long-term image of the market.

Innovation in the Cider Market Flavour innovation continues to feature at the forefront of growth in the cider market.

While apple cider remains the most popular type, other flavours such as pear, other and mixed fruits are growing in popularity and appealing to more adventurous drinkers. It is therefore unsurprising that cider companies are targeting this growing market with innovative new flavours.

Pear variants remain popular in NPD, including Stella Artois Cidre Pear and Strongbow Pear within a few weeks of each other in summer 2012, Gaymers Pear with Raspberry flavour (May 2012) and Lambrini’s Apple & Blackcurrant-flavoured perry (January 2012).

Other unusually flavoured NPD in 2012 included Rekorderlig’s Orange & Ginger variant and Magners Berry Irish Cider, introduced in spring and summer 2012 respectively, while Westons plans to re-release its limited edition Raspberry Twist in spring 2013.

True to its ‘ün-established’ image, flavoured cider specialist Kopparberg bucked the trend by launching its first unflavoured apple cider called “Naked Appe” in April 2012.

18

Brothers has adopted an even more adventurous approach and looked to appeal to its 18-34-year-old target demographic with unusual flavours such as Tutti Frutti and Toffee Apple which were repackaged in late 2011.

As a growing number of operators enter the market, a number of brands have revamped their packaging to achieve shelf standout and differentiate themselves. Bulmers’ packaging was rebranded with a new look and bottles in the summer of 2011, with new variants to target different drinking occasions and broaden the brand’s appeal to a wider range of consumers.

A number of brands are also now selling cider in a box, with the Wyld Wood brand achieving distribution in the multiple retailers. While this segment is still in its infancy, the fact that 59% of cider drinkers would be open to buying cider in a box/keg indicates the significant potential for growth.

The smaller craft brand Orchard Pig redesigned its packaging at the start of 2012 to be more colourful and include its ‘truly loveable swine’ brand character with the aim of making the brand more fun and memorable.

As previously explained, cider’s association with summer has historically posed a problem for the market, with sales dropping off in the colder and wetter months of the year. In response, a growing number of cider producers are attempting to extend the 19

number of cider drinking occasions with NPD such as Weston’s Mulled Cyder and Rekorderlig’s Winter Cider cocktail recipes and Somerset cider producer Norcotts has tailored its offering to seasonality so that there is a ‘cider for every season’. Some of the less common flavours in the company’s range are Cranberry, Elderflower and Raspberry & Orange.

The International cider market has witnessed recent product launches that provide potential stand out opportunities for cider manufacturers in the UK. A light-hearted cider was launched by Dr Pilkington’s Miracle Cider in Australia in summer 2012. The cider, made from 100% fresh apples makes humorous claims and carries the tagline ‘When it works, it’s a miracle’.

The Dutch brand Jillz launched a new non-alcoholic sparkling cider brand in summer 2012. The product is made from apples, pure water and natural fruit extracts and aims to tap into growing consumer interest in lower/non-alcoholic drinks.

Cider Production There are rules and regulations to be adhered to regarding cider making. It is advisable to check with HM Revenue & Customs on the quantity that can be made without incurring Excise Duty and about any registration procedures required.

Cider is normally made from 25-30% cider apples, the rest can be cull fruit, i.e. outgrade eaters and cookers, but essentially the fruit needs to be sound with little to no bruising.

Cider making involves two processes: scratting and pressing. Firstly the apples are “scratted”, which means minced up. They are then pressed to extract the juice. At this stage of the process, cider and apple juice are exactly the same. If the required end

20

product was apple juice, it could simply be pasteurised to extend shelf-life whereas cider is allowed to ferment.

Fermentation usually takes place in used spirit barrels and continues until fermenting stops. This produces traditional still cider. The wild yeast on the fruit will ferment naturally, nothing has to be added. However in some circumstances yeast, malic acid and sugar (if producing a sparkling cider) may be added to juice to create the right environment for fermentation to occur.

Fermentation is carried out at low temperatures (4-16°C) to slow the process down, and allow the cider to keep its aroma. Before the fermentation process consumes all the sugar, the cider is removed or ‘racked’ to a new vat. Dead yeast and undesired products are left in the old vat for disposal. The more a cider is ‘racked’ the less cloudy the final product is, and often extra sugar is added to the maturing product to prevent carbonation occurring. Cider can be drunk after three months of fermentation but it is more commonly left in a sealed vat for up to three years.

Simple or more elaborate equipment is available both to scrat and press. This can be improvised, but on a larger scale good equipment saves time and can give a better product. Typically one tonne of apples with yield between 500 – 600 litres of cider when using standard equipment.

Some varieties of apple, often with higher acid and tannin contents than dessert apples, are grown especially for hard cider production. Traditional varieties include Dabinett or Michelin. The fermentation of apple juice to produce an alcoholic beverage dates back at least 2000 years, and cider is recorded as a common drink during the Roman invasion in 55 BC. In the 4th Century, St Jerome used the term sicera to describe drinks made from apples; this may be the word from which 'cider' is derived.

Cider can be obtained on draft (both keg and cask-conditioned) or pre-packaged.

Products range in alcoholic strength from less than 0.5% to 8.5% ABV, often higher in artisan ciders, and in sweetness from very dry to sweet. Appearance is classified from 'white' (i.e. decolourised) to 'black' (a blend of cider from fermented, malted barley).

Cider may be made from a single apple cultivar (e.g. Kingston Black) or mixed, but those made from a single variety from one crop may be sold as a defined year vintage like wine.

When tasting cider, Bulmers recommends a cider with a clean, fruity nose. The tannins should leave a slightly sharp or bitter taste on the gums and cheeks but the taste should

21

be clean and appley with no unpleasant after-taste. If very acidic the cider may catch sharply at the back of the throat.

The main commercial cider varieties are Dabinett and Michelin but additional research may be required to identify suitable local varieties. Usually resistance to scab and canker are the most valuable characteristics, especially in wetter areas.

In terms of orchard planting the general recommended planting density is 606 trees per hectare [spacing is 5.5m x 3m] whereas more traditional cider orchards typically have a lower planting density, around 300 trees per hectare.

Farm gate prices for cider range from £1.00 - £ 2.00 per litre. Prices are probably at the higher end in Scotland especially if marketed well, for example with Open Days and other promotions. Involving the public during the production process can be an invaluable aid to sales. The key to success is to produce a quality product and make sure your customers know about it.

Potential Cider Partners Strathaven Ales The business is supportive of producing a cider from local apples and although they have not produced a cider before they are interested in doing so as it would widen their product portfolio so would be prepared to install the necessary equipment.

They identify that there is a potential gap in the market for Scottish cider as Thistly Cross are the only cider maker in Scotland of any commercial size. The feeling is that if they made a cider it could be marketed through their existing customer base and that the market could potentially be as large as their beer. They would also be interested in looking at exports.

They are currently unsure of the quantity and specification of the apples required but it is something they are prepared to research. The cider could be produced under a Clyde Valley brand subject to agreement between all parties but their concern is the consistency and quality of the apples supplied. A poor apple production year would restrict the cider volumes but sourcing external apple pulp would obviously affect the integrity of the Clyde Valley brand. Also, if sales were to reach significant levels they question whether there would currently be sufficient supply of apples to meet the demand.

22

However, if they make their own branded cider they would be happy to source apples from Clyde Valley growers but in either case they would only want to deal with one point of contact. Although supportive of the idea of working with local tree fruit producers any agreement would still be subject to the same commercial and practical considerations as any other supplier, with the major factors being repeatability and consistency.

Although quantities are small, they do already use other fruit such as damsons and plums in their existing products and if they go into cider production could also look at Perry from local pears.

Contact: Craig Buchanan Email: sales@strathavenales.com Address: Craigmill Brewery, Strathaven, South Lanarkshire, ML10 6PB Telephone: 01357 520419 Website: www.strathavenales.co.uk

Thistly Cross Cider Peter Stuart of Thistly Cross Cider was keen to further linkages between his business and the Clyde & Avon Valley Landscape Partnership. Thistly Cross Cider would consider producing a dual branded cider but are always looking for fresh Scottish apples for cider their own production.

These apples would need to be harvested directly from the branch as fallen apples inevitably lead to bruising. Apples would be accepted in a “potato box” format throughout the season. The purchasing price of apples was not discussed as this would be totally dependent on market demand.

Contact: Ian Rennie or Peter Stuart.

Email: ian@thistlycrosscider.co.uk / peter@thistlycrosscider.co.uk Address: South Belton Dunbar Dunbar EH42 1RG Telephone: 07960 537 132 Website: www.thistlycrosscider.co.uk

23

Apple Juice Fruit juice, juice drinks and smoothies together enjoy almost universal popularity, with penetration at almost nine in ten consumers. The category benefits from its relatively frequent consumption, with a sizeable minority of consumers drinking these drinks on a weekly basis.

Usage is skewed towards groups that are poised to experience growth over 2012-17, namely the under-35s and households with children which is encouraging for the future prosperity of the market but the lack of engagement among over-45s, who are less likely to have drunk fruit juice poses a challenge to the market. Pushing the health and hydration benefits of fruit juice could help the market to gain appeal as a useful product.

Continuing investment in NPD and increased advertising support from major brands such as Innocent and Tropicana will play a key role in keeping consumers interested in the fruit juice category.

Although the number of seasonal winter product launches in the fruit juice has been limited, Copella been leading the way by launching a ‘Winter Warmer’ apple juice in October 2011. The juice, which is infused with spices including juniper, cinnamon and nutmeg, is intended to be consumed hot.

Instilling healthy eating habits in children is a key concern for many parents with the majority of parents ensuring their children have a healthy diet. Manufacturers of fruit juices can capitalise on these concerns by emphasising the health benefits of their products.

Cawston Press’ Kids Blend Apple & Pear and Apple & Mango beverages are blends made with 75% pressed fruit and water. The drinks, which do not contain added sugars

24

or sweeteners, were launched in the summer of 2012 and are said to meet UK government guidelines for schools.

Innocent repackaged its Kids Smoothies in recyclable multipacks of 4 cartons in the summer of 2012 whilst Calypso’s Disney Winnie the Pooh Forest Fruits Juicy Water provides one of 5-a-day per 200ml portion and features an easy-to-open sports cap for kids.

Premium juice with the distinct flavour of apples is processed as little as possible after the apples have been pressed. The juice is flash-pasteurised, which means it is heated to between 71 and 74 °C for about 15-30 seconds. This kills spoilage micro-organisms making the product safer and giving it a longer shelf-life (up to two years).

Pasteurisation also maintains colour and flavour of the juice; if unpasteurised the juice may ferment to produce cider.

Apple juice is a mixture of sugars (primarily fructose, glucose and sucrose), oligosaccharides and polysaccharides (e.g. starch) together with malic, quinic and citromalic acids, tannins (i.e. polyphenols), amides and other nitrogenous compounds, soluble pectin, vitamin C, minerals and the diverse range of esters (e.g. ethyl-methylbutyrate and iso-butyl acetate), which give the juice a typical apple-like aroma. The relative proportions depend on the apple cultivar, growing conditions, maturity of fruit at the time of pressing, physical and biological damage (e.g. mould and other rots), and, to a lesser extent, the efficiency with which the juice was pressed from the fruit. Apple juice is versatile in cooking; it can form the basis of syrup or it can be added to a sauce. It can also be used instead of apple purée for mousses, ices and jellies.

25

Apple Juice Production Apple juice production is the same procedure as cider production right up until the fermentation process. Pasteurisation may be carried out but this is not a legal requirement, it will however dramatically increase the shelf-life of the final products and therefore potentially open markets out with the Clyde Valley.

The generally accepted yield for the production of apple juice is typically 50 – 60% while using standard juicing equipment.

Varieties previously mentioned for cider production are generally good for apple juice production. In addition more native varieties such as the Galloway Pipin, although not an attractive variety, is ideal for juicing.

Apple Storage Apples already possess a long shelf-life and stored in ideal temperatures and humidity conditions they will remain crisp and full of flavour for a number of months. Many of the apples found on supermarket have been kept in cold storage, until just before they are placed on the shelves.

Many of the larger scale juice and cider producers have stock being held in cold stores.

The smaller producers will be renting cold storage space. Rental is calculated by the number of pallets being stored and the length of time required.

Typically prices per pallet are £2 per day or alternatively £10 per week – this is often negotiated downwards due to either the number of pallets requiring storage or the length of time cold storage will be required. There are numerous cold storage facilities located in the Central Belt including a number of food processing businesses that often have excess cold storage.

Contact: Long Lane Deliveries, Bellshill on 01698 539940

Potential Apple Juice Partners Cuddybridge Apple Juice Cuddybridge Apple Juice was formed in 2007 by Graham Stoddart and produces freshly squeezed varietal apple juice for the Scottish hospitality and food service industry from Innerleithen in the Borders. The business has previously won the Scotland Food & 26

Drink Excellence Awards in 2012 for the best Foodservice Product of the Year which has helped the business to expand their customer base.

Apples are sourced from orchards in the south of England and France where warmer climate can accommodate the growth of a wide selection of apple varieties all year round. During 2012, Cuddybridge entered into a unique partnership with the National Trust for Scotland and began pressing all the apples grown on its properties. These include historic species that are hard to find elsewhere such as Brownlees’ Russet from Culzean Castle in Ayrshire and White Melrose from Priorwood Garden in Melrose.

As an artisan food producer the business would like to maintain a selective level of production to guarantee a quality product for every customer and is continually looking for a seasonal supply of Scottish apples.

Graham would be willing to produce apple juice for the Clyde & Avon Valley Landscape Partnership and costs would be dependent of volume and his own production capacity.

Apples supplied in 18-20kg boxes in a clean and sound condition would be acceptable.

There is scope to accept bruised apples but the level of damaged apples needs to be limited to maintain a consistence to any apple juice.

Contact: Graham Stoddart Email: cuddybridgeapplejuice@yahoo.co.uk Address: Leithen House, Leithen Road, Innereithen, EH44 6HY Telephone: 07522 424596 Website: www.cuddybridgeapplejuice.co.uk

Preserves The value of the preserves (sweet and savoury) was £836 million in 2012. Volatile prices of commodities like sugar, fruit, honey as well as energy costs have contributed to values rising ahead of volume sales in the sweet and savoury spreads/dips market.

The ‘washout summer of 2012’ saw below-average fruit and vegetable yields, while the British Beekeepers Association reported a 72% drop in the average annual honey crop per hive in its 2012 survey.

The focus for the sector moving forward is likely to be on increasing usage occasions e.g. in cooking/baking/snacking and recruiting new users. Sweet preserves are 27

considered relatively unhealthy (albeit typically high in sugar as opposed to being high in fat) and concerns about health are a key factor inhibiting consumption. According to Mintel, two fifths of sweet preserve consumers express concern about sugar content, whereas only one in eight has cut back their usage because of cost.

This reinforces the need for new products to demonstrate how sweet preserves can fit into a healthy balanced diet, such as by communicating how they can offer consumers an acceptable taste/health compromise.

Types of sweet preserves Any

88

Jam

67

Honey

48

Peanut butter

40

Marmalade

39

Chocolate spread

33

Syrup/treacle

22

Curd

14

Conserve

12

Other type of sweet spread

2

None in the last 6 months

12 0

20

40

60

80

100

% Source: GMI/Mintel, 2013

Jam remains the largest sector within sweet preserves and almost nine in ten consumers have bought some type of sweet spread in the last six months, indicating a broad user base. Women are by far more likely to have bought sweet spreads, partly linked to their role as the main shopper in many households.

28

Types of savoury (non-sweet) preserves

Any

82

Pâté

43

Yeast extract (eg Marmite)

32

Salsa

31

Hummus/houmous

31

Sour cream (as a dip)

30

Chilled spread (eg sandwich f iller)

24

Paste (meat or f ish)

22

Guacamole

15

Meat extract (eg Bovril)

10

Other type of dip

8

Other type of savoury spread

4

None in the last 6 months

18

0

10

20

30

40

50

60

70

80

90

% Source: GMI/Mintel, 2013

Pâté is the most popular type of savoury spread, purchased by more than two fifths of consumers, highlighting that no individual type enjoys universal usage. Yeast extracts such as Marmite were purchased by almost one in three adults, true to their ‘love it or hate it’ positioning. Salsa and houmous lead purchases among dips, though despite their mainstream presence, bought by just three in ten.

Potential Preserve Manufacturing Partners R&W Scott R&W Scott is a food processing business in Carluke. The business produces chocolate coatings and sauces, jams and dry powder blends for the industrial, retail, wholesale and foodservice markets.

A range of jams are manufactured for the food processing, foodservice and retail markets and the business is currently undertaking a re-branding exercise of their entire preserve range.

The R&W Scott brand has a strong heritage and reputation for producing high quality jams in small batches and once again is keen to explore potential collaboration options with the Clyde & Avon Valley Landscape Partnership.

29

The business would like to enhance its reputation within the wider Clyde Valley community and assist in the creation of a range of Clyde Valley preserves.

The process for producing large volumes of preserves is still very much based on traditional methods. R&W Scott are based in South Lanarkshire and would be keen to discuss production options.

There are clearly processing requirements required to get fruit into a preserve making state but due to the lack of processing facilities available and the willingness of Scott’s the is potential for Scott’s to undertake the processing. This will obviously come at an increased cost and ultimately a reduced gross margin but is a potential solution to the lack of processing facilities within CAVLP. Typically fruit preserves yield double the amount of jam to the amount of fruit added. For example if 1 tonne of plums went in then 2 tonnes of preserves would be expected (200% yield). However this would be processed fruit and therefore would require stones to be removed which would ultimately lead to a loss of yield. The expected yield from chutney is much less and in the region of 60 – 80%.

Contact: John Easton Email: john.easton@randwscott.com Address: 52 Clyde Street, Carluke, Lanarkshire, ML8 5BD Telephone: 01555 770711 Website: www.randwscott.com

30

Apples Snacking Products Adding value to fruit through the production of fruit crisps is a complex and costly process. The volumes of raw material and sales of final product must be significant to recover the cost of the initial outlay in processing equipment and marketing. This is a growing market and something to consider but only when the volume of raw material is sufficient.

Many of the existing product on the market are produced outside the UK with Apple Snapz product being produced in Hungary. Typical examples of apple snacking products can be found below; www.perrycourtfarm.co.uk

www.nimsfruitcrisps.com

www.kiddylicious.co.uk

www.kiddylicious.co.uk

www.snapzcrisps.com

31

Establishing a Food & Drink Business When establishing a food and drink business there will be requirements no matter the size of the operation to be registered with various legislative and enforcement bodies. At the planning stage it is advisable the in touch with the local authority. They will be able to help with the following; 

Registering the food business



To assist with the layout plan of the business



To organise waste and recycling collection



To access appropriate training and tools

It is a requirement that a businesses is registered with the environmental health service at your local authority at least 28 days before opening – registration is free.

Registration applies to most types of food business, including catering businesses run from home and mobile or temporary premises, such as stalls and vans. If there is more than one premises, there is a requirement to register all of them.

To register download an application form from your local authority websites or contact the Environmental Health department directly.

The checklist below acts a guide to the areas that will require attention either as part of legislation or as part of good manufacturing practice; Local Authority Food Safety legislation places an obligation on food business operators to ensure that all their activities are carried out in a hygienic way and makes it an offence to supply food which is unsafe or harmful to human health. South Lanarkshire Council is responsible for ensuring that businesses comply with these requirements.

The Environmental Health Service is responsible for the regulation of Food Safety across South Lanarkshire. Environmental Health Officers and Technical Officers with administrative support, carry out a variety of duties: 

Enforcement of the Food Safety Legislation, its Regulations and Codes of Practice

32



Inspection of all food businesses, with regards to hygiene standards, food safety and labelling



Investigation of food complaints and complaints against food premises



Investigation of suspected food poisoning/food poisoning outbreaks



The microbiological sampling of food



Inspection, seizure and detention of suspect food



Registration of all food businesses



Approval of meat/dairy product premises



Provision of advice and assistance to food businesses, other services within the Council and the general public

There is no need for a licence to set up a food business. However, it is a requirement to register as a food premises and comply with the relevant legislation. Some premises may be required to be approved by the Council e.g. some meat processors, therefore clarification should be sought from the local Environmental Health Office.

It is always advisable to get in touch with the local Environmental Health Office early in the planning stage this ensures an effective level of communication and trust. Contact details are below;

Environmental Standards South Lanarkshire Council Almada Street Hamilton ML3 0AA Tel: 0303 123 1015 Waste Disposal In addition to the local authority council there are many businesses that offer a commercial waste collection, and bulky uplift disposal service. These commercial waste collections can be provided on a weekly, fortnightly, monthly or quarterly basis to meet individual requirements.

All businesses have a statutory duty to ensure that they dispose of their waste correctly and use a registered or exempt waste carrier to collect it. Section 34 (Duty of Care) of the Environmental Protection Act 1990 defines the need to correctly document all transfers of waste from producer, carrier and disposer.

33

Training There are numerous training courses available relating to all aspects of the food and drink industry the key will be in selecting the most appropriate for the sector. There are a number of training courses which will need to be undertaken as a result of legislative requirements while others may be of interest simply through the need for good manufacturing practice.

The two areas covered in the following section are legislative requirements; 

HACCP



Food Hygiene

HACCP Hazard Analysis Critical Control Point or HACCP is a systematic preventive approach to food safety that addresses physical, chemical and biological hazards as a means of prevention rather than finished product inspection. HACCP is used in the food industry to identify potential food safety hazards, so that key actions can be taken to reduce or eliminate the risk of the hazards being realised.

SRUC currently run HACCP training, usually based at Auchincruive, and covers the following areas; 

Explanation of the principles of hazard analysis



Explanation of how food hazards are identified, controlled, monitored and verified



Explanation of basic requirements needed for the implementation of a successful HACCP system



Explanation of appropriate legislation

The course lasts one day and all businesses involved in food are required to identify steps in their operation which are critical to ensuring food safety. Guidance given in this workshop enables colleagues with a professional interest in the food chain to gain a practical approach to hazard analysis and the application of the principles of HACCP.

Course Costs: The cost of this course is £100 (VAT exempt) per candidate. This includes all tuition, course handbook, REHIS fees, certificate and all catering.

Contact: Mr Iain Mc Gregor, Agricultural Economist, SRUC iain.mcgregor@sruc.ac.uk (Tel: 01292 525050)

34

Food Hygiene There are a number of courses available for food hygiene training. Currently there are three levels of hygiene training available; 

Elementary Food Hygiene



Intermediate Food Hygiene



Advanced Food Hygiene

SRUC run food hygiene training, contact Iain McGregor as above. Polaris Training also carry out Food Hygiene training, details to follow. It may be possible that food hygiene training can be undertaken in conjunction with additional training and it is best to contact the individual training providers to discuss.

Contact: Gordon Gibb, Polaris Training, info@2polarislearning.com (Tel: 01651 873398) Other areas in establishing a food and drink business are covered in the Food Safety and Labelling Guide for Farmers’ Markets in Scotland. The guide was produced by the Food Standards Agency and provides practical guidance to Famers’ Market organisers and producers but is a great start point for anyone wishing to establish a food and drink business; http://www.food.gov.uk/multimedia/pdfs/farmermarketscot.pdf

The checklist below acts a guide to the areas that will require attention either as part of legislation or as part of good manufacturing practice;

1. Have you registered your premises?

2. Do the design and construction of your premises meet legal requirements?

3. Are you aware of the main General Food Law Requirements?

4. Do you keep written records of all the suppliers that provide you with food or any food ingredients?

5. Have you put food safety management procedures in place and are you keeping up-to-date records of these?

6. Do you and your staff understand the principles of good food hygiene?

7. Have you considered health and safety and fire safety arrangements?

8. Have you registered as self-employed?

35

9. Do you need to register for VAT? 10. Are you keeping records of all your business income and expenses?

11. Are you keeping records of your employees’ pay and do you know how to pay their tax and National Insurance contributions?

12. Do you have appropriate employer and public liability insurances in place?

13. Do you describe food and drink accurately?

36

Brand Development Brand definition Brand is the generally accepted description for the total offering of product (or service), the tangible (functional), intangible and emotional elements. Tangible elements include the physical properties of the product itself, taste, appearance, packaging etc.

Intangible elements include service, availability, relationships etc, while emotional elements include the attachment that people have towards the brand through a combination of experience and empathy with the product and its values.

This is summed up in the Chartered Institute of Marketing definition of a brand: “The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it - a unique combination which the name or logo of the product or service should evoke in the mind of the audience.”

The experience and expectations of a brand are unique to each individual customer but making these positive is the key to creating a great brand.

A brand is a combination of a promise made up of a combination of beliefs, values and perceptions that exist in the mind of all stakeholders of an organisation. Developing the promise means communicating what the organisations values and delivering these consistently through actions, service and the product itself. The product needs to become established in the mind of the consumer and they need to understand what it will give them in terms of value and quality and what its emotional values are.

There are various types of branding but the most common are: 

Individual product brands – where the product is the brand



Family brand – where the brand covers a number of sub-brands or products e.g.

Flora is a brand owned by Unilever and includes Flora spread, Flora Proactive and Flora Cuisine



Manufacturers brand – where the brand is the business name e.g. Ford cars or Kellogg’s cereals.

With increasing competition in a mature UK food and drink sector, a strong brand is one of the key competitive differentiators, so it is increasingly important for businesses to communicate what their brand stands for. Understanding what consumer expectations and needs are is important in communicating the brand values as different consumer markets and segments are likely to have different levels of knowledge, expectation and 37

values. Consumers looking for ways to help them choose between similar products will often go for a brand with values similar to their own, so aligning company and consumer values provides greater chances of success.

This is very much tapping into current consumer concerns around issues such as the environment and social responsibility, health, traceability and provenance, as well as a greater interest in how food is produced.

Consumers are becoming increasingly

interested in the provenance of their food and how it is produced, which in turn has seen a significant growth in the purchase of local foods.

This provides an opportunity for the development of Clyde Valley Orchard produce brand as it ticks many of the essential brand boxes. The heritage and regeneration of the orchard provides an emotional attachment as well as a strong provenance.

Research has shown that to most Scots ‘local food’ is generally something that is produced in Scotland, so this will help them identify with products from the orchard.

Brand Development The group has two choices regarding brand development.

The first is to develop and manage its own Clyde Valley Orchard brand. This has the advantage of developing consumer recognition and loyalty for the product(s) from the orchard and the region. The down side is that developing and managing a brand in a mature food market could potentially require significant resources in terms of both cost and time.

The second choice is to become part of a Family brand, which managed in the right way this would still allow some recognition of the Clyde Valley Orchard but would require considerably fewer demands on resources and time, as much of the work is done by the main brand.

Should the group decide to create a Clyde Valley Orchards brand then the process is much like developing a Business Plan.

The following is a suggested template

developed by the Chartered Institute of Marketing (CIM), which illustrates the main factors that need to be considered.

38

Brand Development Template Objective/goal What are the objectives and goals for the brand?

What are the critical success factors?

What are the qualitative and quantitative measures of success?

Positioning – where will it fit in the market place?

What is the brand proposition?

What does it offer and what need is it fulfilling?

1. It’s been created for ............................ (your demographic type/audience segment/target user/customer) 2. who............................ (state their need/their problem).

3. The............................ (name of your product/service) 4. is a............................ (the kind of product/service it is) 5. that............................ (a statement of its key benefit. The reason why your audience needs it/will buy it).

6. Unlike ........................(your primary competitor/alternative to your product/service) 7. we ............................ (say what differentiates you from the alternatives/your existing competition).

Current/desired positioning/brand image What is the Brand’s current and desired positioning in the market?

What is the desired Brand Promise?

What is the current and desired brand image?

Target audience Who are the target customers?

Where are they?

What is their profile (age groups, demographics, geo-demographics, lifestyle, values etc.)

Is any consumer research or Insight required?

Competitors Who are they?

What do they offer?

How are they differentiated?

39

Company values What are the brand (company) values?

What makes them different from competitors?

Can this be promoted and supported?

Brand promotion How will the brand be promoted internally and externally?

Budget

Timings:

What is the budget?

What are the critical dates?

Will it be done internally or by a 3rd party agent?

Brand Champion Ideally a brand needs to have a champion, someone who is responsible for ensuring that the values are maintained, that it is used the correct way (colours, design etc) and that it is not devalued in any way. In larger organisations this would be done by a Brand Manager but for the group and individual or a small committee could do the job but it is important that the integrity of the brand is not ignored. It needs to be ensure that it continues to differentiate the groups and its products and that it remains relevant to consumer demands and trends.

The other alternative is not to develop a brand at all and simply become a supplier to an existing producer, This is by far the simplest and cheapest option but does mean that there is unlikely to be any recognition of the orchard via whatever products the fruit goes to make and the group will become a commodity producer, missing out on potential added-value opportunities.

A Clyde Valley Brand We spoke with David Craig MD at Clyde Valley Tomatoes and he indicated that he has spent a significant amount of money designing his brand so that it can be developed into a family brand to allow other products produced in the region to become part of the ‘Clyde Valley brand family.’

His proposal is that he will effectively act as a wholesaler for the region, buying products from producers and selling them at a small margin to his existing and new customer 40

channels

The brand logo, which he owns, would be changed to something like ‘Clyde

Valley Orchards’ and the products and brand story / values would be promoted on his website and through his social media channels.

There would need to be agreement regarding product quality and supply but David has a number of existing customers who are very interested in stocking Clyde Valley Orchard products, including fresh fruit. He would be interested to discuss the idea of running a small trial selling fresh fruit to some interested customers this coming harvest.

David also said that he has 32 acres of land surrounding his greenhouses that he is planning to plant into orchard at some point in the future, so he is very interested in helping to regenerate and redevelop fruit growing in the area.

Contact: David Craig Email: david@clydevalleytomatoes.co.uk Address: Briarneuk Nursery, Braidwood, Carluke, ML8 5NG Telephone: 07967-965897 Website: www.clydevalleytomatoes.wordpress.com

Given the dispersed nature of the growers and the limited resources available we would recommend that the group seriously consider exploring this offer from David. In the short term it may provide a market for fresh fruit while added value products are developed.

It need not entail committing all sales through david and it would be

perfectly possible to develop several marketing channels, including developing a groupowned Clyde Valley Orchards brand. However, given David’s existing customer base and background in the industry, there could be significant advantages in terms of time, money and resources in working with him, providing a satisfactory arrangement for all parties can be reached.

Protected Food Names (PFN) There appears there is little opportunity to currently seek PFN status. It is not possible to gain PFN status on crop varieties even if they are traditional to the area. Therefore the only opportunity would be if a product that is linked to Clyde Valley fruit and the region can be found, resurrected and commercially produced.

41

PFN status is designed to protect the traditions and heritage surrounding a product, so new products or brands started as a consequence of this project would probably need to be produced for a minimum of 20 years before it would be considered to fulfil these criteria.

In a report compiled by ibp Strategy and Research for the Intellectual Assets Centre in June 2010, they identified over 330 Scottish Heritage foods that may be suitable for PFN status. Of these there appears to be only two apple based products – the Apple Frushie and the Apple Butterscotch Pie – neither of which are identified as coming from a specific part of Scotland.

Further research will be necessary to determine both

whether they are eligible to apply for PFN status and whether they have any specific connection with the Clyde Valley.

42

Orchard Development Developing the Orchards Any development of the orchard needs to fit with the values of the brand that the group wishes to develop. As a heritage orchard, environmental and sustainable credentials should be to the fore and any future development needs to enhance these factors.

Consequently a more extensive, mixed and multi-purpose orchard, with lower density planting and increased biodiversity is the recommended option.

However, this does not preclude the potential of planting new orchards or increasing the number of trees in existing orchards to help bring them up to productive levels but if the fruit is to be sold under the Clyde Valley Orchard brand it should be done in such a way that the brand values are maintained.

Developing Sustainability and Biodiversity All orchards benefit wildlife in some way, either as a food source or as a home, or both.

Some types of orchard are much better at doing this than others. At the bottom of the biodiversity league are modern densely planted single variety orchards where the fruit trees are short lived, are on dwarf rootstocks, and are intensively managed using a lot of chemical inputs. At the top of the biodiversity league are the much more lightly managed traditional types of orchard, where widely spaced and longer lived trees on half standard or standard rootstocks grow in unimproved grassland and produce a range of fruit types.

In 2007 this important difference was formally recognized when traditional orchards were designated a Priority UK Biodiversity Habitat by the UK Government.

Old traditional orchards are biodiversity-rich environments because their fruit trees share many of the same physical characteristics as usually much older native woodland trees.

Under EU Law it is an offence to damage or destroy the breeding or resting sites of several rare and endangered animals which inhabit these types of orchard, including bats, several species of beetle, some bird species and great crested newts. They may also contain rare fruits, possibly locally raised varieties, so this also makes them scientifically valuable.

A recent report from the University of Reading - Sustainable Cider Apple Production identifies the benefits of developing extensive, low maintenance orchards that encourages biodiversity and accommodates intercropping or undergrazing as a potential 43

second form of income. The report considers the orchard from a holistic ecosystem point of view and it clearly identifies that this type of orchard is more long-term sustainable than the high density, high input orchards that have been planted in recent years.

The report highlights the need to attract pollinating insects through interplanting with flowering trees or bushes, and/or wild flowers in the ground cover, while such species as Phacelia tanacetifolia Benth. (phacelia), Fagopyrum esculentum Moench (buckwheat), Lobularia maritima (L.) Desv.(alyssum), and Coriandrum sativum L. (coriander) can also be used to attract predator insect species

The report provides considerable detail on the options available to growers in either regenerating old, or planting new orchards. Whichever method is chosen depends upon individual circumstances and management regimes and rather than detail all the options here a copy of the report accompanies this report.

Interplanting and Interspacing Interplanting or interspacing with flowering bushes will help to attract pollinator insects as well as providing additional cropping options and income. Recommendations for the Clyde Valley include several species of currant, along with gooseberries, as these tend to flower at the same time as the fruit trees. In order to create a low maintenance environment it is recommended that the orchard is underplanted with nitrogen-fixing ‘nurse plants’ that will provide both the trees and the fruit bushes with the nutrients they need and reduce or negate the need to apply artificial fertilisers.

White and Red currants provide a very low maintenance option as they only require pruning once a year, an operation that only takes a few minutes a bush. Blackcurrants are a little larger so take a little longer to prune but are still relatively low maintenance.

Gooseberries are another low maintenance option but are susceptible to sawfly, which can devastate the plant in some years, so may need extra work to protect them in these circumstances. Brambles could also be considered but these will require more maintenance to allow access to the fruit trees, although there are thornless varieties that would be advantageous in this situation.

Planting raspberries in the trails between trees is also a possibility but they do require a good supply of water, need supporting and have a tendency to spread, and depending 44

upon spacing between trees, may interfere with operations and movement around the orchard. The standard commercial varieties are not really suitable for interplanting as they have been bred for modern cultivation methods but some varieties closely related to the wild raspberry would be suitable and would require less maintenance, although they will still require regular management to prevent them spreading.

Quince trees interspaced within the orchard are another possible option but cherries are not recommended as they cannot be relied upon to produce viable fruit in Scotland, although the variety Stella may be a possibility in some specific circumstances.

Nut species are not generally recommended as they do not attract pollenators but if this is not a major factor then nuts from the Corylus (hazel) species could be considered. Of these Filberts (C. maxima) would be the best choice as cobnuts (C. avellana) are less hardy and cropping can be severely affected after a hard winter. They will tolerate many different soil types but prefer light, sandy, well-drained soils with a pH of 6.5-7.5. Fertile soils can lead to excessive growth, making them harder to manage.

However, controlling squirrels will be the major issue with growing any nut crop.

Experience indicates that the local squirrel population will expand rapidly where nuts are grown and if not controlled, or the crop protected in some way, will decimate the crop before the nuts get a chance to mature.

New Orchards When planting new extensive orchards the recommended minimum spacing for apples would be in the region of 5.0m x 5.0m using MM111 rootstock, although in some cases closer spacing to a minimum of 3.5m x 3.5m could be considered using semi-dwarf rootstock such as M116 or M26, although M116 needs to be permanently staked and growth can be adversely affected by clay and poorly drained soils.

For both plums and damsons, to produce large standard trees Brompton rootstock should be used on a spacing of around 8.0m x 8.0m. St Julien rootstock is suitable for closer spacing down to approximately 4.0m x 4.0m but is not suitable for poorly drained soil.

As identified in the Hayes ‘Reviving the Clyde Valley Orchards – the way forward’ report of 2010, regeneration of the existing orchards in the majority of case will be both time 45

consuming and uneconomic for the owners. It is also clear from the survey that many of the owners do not have the capacity, through a combination of age, cost, knowledge or interest, to carry out the work, although a number do appear to try to stop further deterioration.

The report also identifies the fact that there are skilled contractors within Scotland who could potentially undertake some of the physical labour in the orchards, such as pruning and ground cover management. However, the cost of this work when compared with the nature of ownership and the current uneconomic state of the many of the orchards, is likely to mean that very few owners would choose this option on an individual basis without some form of economic help.

Conclusion Due to the varying ages, locations, sizes and state of the various orchards there is no single model for regenerating or interplanting. Each orchard will require an individual plan depending upon the requirements and objectives of the owner.

It appears that the main interplanting options for the existing heritage orchards are either currants or gooseberries but these would need to be planned carefully. Brambles and raspberries are also a possibility but require more management and careful selection of varieties will be necessary.

Unless the owners have some means of controlling squirrels producing nuts appears not to be an option, potentially creating more problems than beefits.

There are some exotic fruit, such as Nepalese raspberries that are extremely robust and easily managed but these have not been tried to any great extent in Scotland.

With any of these options it will be important to ensure there is a market for the produce.

If the group choose to develop preserves then many of the berries of gooseberries will provide another flavour option. As indicated wild raspberry varieties and some exotic fruit species could be grown but the market for these will be extremely limited and consumers will need to be educated into what they are and how to use them. Nuts will also have a limited market although they may have some added value ingredient uses.

The option of underplanting needs to be considered carefully and needs to fit in with the overall requirements of the orchard and its owner. Not only does species need to be 46

planned carefully but also markets for the produce. Different management plans are required for each individual orchard using expert advice to ensure that the orchard maintains its heritage qualities and supports the Clyde Valley Orchard brand ethos.

Funding Sources The Hayes report identified the Rural Priorities element of the Scottish Rural Development Programme (SRDP) as a potential funding source. Although this is still a possible source of funds applications are currently closed for this scheme as funding has run out.

The other element of SRDP not mentioned in the Hayes report is the Food Processing, Marketing and Co-operation (FPMC) grant which promotes sustainable and profitable food production throughout Scotland. The scheme has three core elements: 

Capital Grants - contributes towards building construction and plant and equipment purchase.



Non-capital Grants - provides a range of assistance including market research and consultancy, product development and consumer education material.



Co-operation Grants - Support to aid co-operation, collaboration and development within the supply chain.

The level of grant funding depends upon which core element is being funded. Generally capital projects and non-capital have been funded up to 40%, while co-operation feasibility studies and implementation projects could be funded up to 100%. Funding is competitive and the level of support is discretionary up to the maximum amount.

Latterly these maximum rates of funding were reduced as the funding pot began to run out.

The current round of FPMC funding has finished as the funds have been exhausted, with the last application round considered in May 2013. As a significant proportion of the money come from the EU it seems likely that no further funds will be available through SRDP until the new EU Finance Package, and then the CAP budget, are agreed and distributed to member states. Current estimates are that it will be late 2014 or early to mid 2015 before the scheme is opened again.

It seems possible that although some of the eligibility criteria may be revised for the next round of funding but indications are that projects such as the Clyde Valley Orchards 47

would still be eligible to apply under this scheme. Current indications are that it is the environmental factors and co-operation will be of increased significance, both of which are strengths to any possible application from the Clyde Valley Orchard Group, but these can change as the package goes through its various stages of approval.

However, given the nature of the group, the timescale and eligibility criteria, this is a funding source worth considering, particularly via the FPMC option, once it becomes available again.

Other possible funding sources that are more immediately available are:

Heritage Lottery Fund The ‘Our Heritage’ fund is open for any type of project related to the national, regional, or local heritage in the UK with applications available between £10,000 and £100,000.

Heritage grants of over £100,000 are also available but the applications go through a two-round process. This is so that you can apply at an early stage of planning your project and get an idea of whether you have a good chance of getting a grant before you send us your proposals in greater detail. 

At the first and second round, we assess your application in three months, and then it goes to the next decision meeting.



Your development phase can take up to 24 months, depending on the complexity of your project.

The Landscape Partnerships programme is for schemes led by partnerships of local, regional and national interests which aim to conserve areas of distinctive landscape character throughout the UK. You can apply for a grant from £100,000 to £3million.

The Landscape Partnership schemes need to contribute towards all of the nine outcomes listed below.

For Heritage: 

better managed



in better condition



identified/recorded

For people 

developed skills



learnt about heritage 48



volunteered time

For communities 

environmental impacts will be reduced



more people and a wider range of people will have engaged with heritage



your local area/community will be a better place to live, work or visit

Initial reading of the eligibility criteria indicate the Clyde Valley Orchards could apply for funding under this scheme for projects connected to restoring the trees and landscape.

Given the possible levels of funding it may also be worth considering a joint application with other Scottish Orchard group(s), which may provide a stronger and more compelling application.

Community Food Fund The Scottish Government is working with Scotland’s Rural College (SRUC) in the ‘Think Local’ project. The primary aim of the project is to further develop the local food and drink sector thereby improving Scotland’s reputation as a ‘Land of Food and Drink’. This initiative will provide targeted support to local food companies, networks and communities including farm retail and local food events.

The Community Food Fund has been established to help celebrate the Scotland’s local food offering and to help assist Scottish food and drink producers to engage with their communities. Essentially the Community Food Fund will focus on two main principles: 

Supporting the development of food trails and/or networks; and



Establish local food and drink events, including farmers’ markets that celebrate and promote food and drink in Scotland throughout the year.

A total of £1,220,000 is available over a 3 year period with approximately £500,000 allocated for year 1 and 2 and the remaining £220,000 allocated for year 3 with a maximum £25,000 permitted by an applicant in any given year.

The Community Food Fund would be applicable to CAVLP if they wished to develop the “Blossom Day”. Applicants are only likely to succeed if they can prove they wish to build upon current activities so therefore CAVLP would need to demonstrate that any funding would be enhance the current offering at “Blossom Day”. It would also be beneficial and therefore more likely to succeed if there were elements of collaboration with other food and drink producers to ensure greater profile of the local food and drink scene.

49

Typical funding applications for similar events have requested up to £5,000 to cover the costs of marquee hire, marketing etc. But ultimately the costs have been used to reduce the costs and therefore make it attractive for local food and drink producers to attend.

Projects seeking up to £10,000 would need to demonstrate an increased number of events or other suggestions that would have a greater and longer lasting impact than a single event.

Applications to the Community Food Fund will open quarterly with activities taking place within the following 12 months being considered. Any activities requesting funding beyond 12 months should be subject to a further funding application closer to the time.

Clyde Wind Farm Fund This fund will be for capital projects that create local jobs and/or education opportunities.

With the money coming from SSE Renewables, it will eventually be worth around £700,000 a year. When it is open for applications from groups later this year there will be two funding options.

The community fund This will be for projects within the Clyde wind farm area, up to around 15km from the wind farm near Abington.

This is split into two parts: 

the small grant scheme - grants of less than £5000 and up to 100% of total 'eligible' costs



the community fund - grants over £5000 and up to 90% of total 'eligible' costs.

There will be no upper limit.

The development fund This will fund projects across the whole South Lanarkshire area. The project should be about economic/business development and environmental issues.

The fund could meet up to 50% of total 'eligible' costs up to a maximum grant of £25,000.

50

For more information on the Clyde Windfarm fund contact: Community and enterprise Resources Headquarters Montrose Houe 154 Montrose Crescent Hamilton ML3 6LB Tel: 0303 123 1015 Email: enterprise.hq@southlanarkshire.gov.uk

South Lanarkshire Council The council has funds to provide grants and loans for micro, small and medium sized businesses planning development projects that will help increase turnover, profit and the number of employees.

Business Support Grant The maximum any one company can get in any one financial year is £20,000. To be considered for support, business projects must be able to demonstrate results from the project and achieve an increase in jobs, turnover and profitability. They should also be able to show the need for public sector grant funding for the project The Business Support Grant is split into: External expert Grants of up to £3,000 or 50% of eligible cost, whichever is the lower amount, towards external consultancy costs. Examples could be a business plan, ecommerce development, quality accreditations and innovation support.

Capital equipment Grants of up to £10,000 or 50% of eligible costs, whichever is the lower amount, towards new capital equipment purchases. Examples could be the purchase of capital equipment that will bring additional capacity, diversification into new markets, or new innovative processes into the business.

51

Infrastructure improvement Grants of up to £10,000 or 50% of eligible costs, whichever is the lower amount, towards permanent property improvements. Examples could be permanent improvements relating to expansion, conversion, sub-division or other improvement to the physical infrastructure of business premises.

Exploring new markets Grants of up to £2,500 or 50% of eligible costs, whichever is the lower amount, towards exhibition space and stand costs of attending UK and international trade events.

Training grant Grants of up to £4,500 or 75% of eligible costs, whichever is the lower amount, towards external training costs. This funding is part funded through the European Social Fund. Examples could be training that is non-statutory and not core to the business, such as quality or e-commerce related, or other training that will improve skills within the business.

For further information on these grants contact the South Lanarkshire Business Development Team on: Phone: 01698 455143 Email: business.support@southlanarkshire.gov.uk

Crowdsourcing A definition of crowdsourcing is “the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, and especially from an online community.”

A number of businesses are increasingly using crowdsourcing to attract money to fund start-up businesses or specific projects. It often results in a large number of people each providing a small amount of money but has the potential to attract significant levels of funding.

However, in most cases the arrangement is the same as any other investment, with the investors hoping for a return on their money.

Therefore, generally the business or 52

project needs to have a business plan that shows levels of growth that will convince people to invest.

However, it is also possible to use the crowdsourcing model on a local or regional basis, getting local people to invest in a, asset (the Clyde Valley Orchard) as a benefit to the whole community. Some sort of incentive could be offered (e.g. purchase discounts or free entry to events etc.) in place of dividends or capital repayment.

It is not immediately clear how much money could be raised via this method but it is one that is worth considering for certain elements of the overall project but it would require a carefully planned publicity and on-line campaign to maximise the potential response.

Scottish Enterprise Regional Selective Funding (RSA) RSA encourages businesses to undertake investment that will directly result in the creation or safeguarding of jobs in Scotland. RSA is a discretionary grant scheme, so there are a number of criteria to be met for an application to be successful. The amount offered is dependent on the size of your business, location of the project and an assessment of how much is needed for the project go ahead. There are three tiers of assisted areas in Scotland and it appears that Lanarkshire is in Tier 3 which could attract funding of up to 20% of the total cost of any project for a small business.

However, the general criteria are that the project is going to lead to the creation of a number of jobs in the region and that the business is aiming to reach a turnover of £400,000 within three years. Consequently this is unlikely to be an option for the group in the short term but may be so in the future.

Tourism Opportunities The report ‘Valuing Rural Heritage’ produced by ibp Strategy and Research in 2010 estimated that Heritage tourism could be worth up to £3.7 billion to the Scottish Economy and suggests that Rural Heritage tourism could make up between 25% and 50% of this figure, or £900 million and £1.5 billion.

53

Heritage tourism is estimated to directly support around 80,000 jobs, accounting for up to 5% of Scotland’s total employment (rising to between 60% and 70% in some rural areas) and Heritage Tourism is considered to be a key driver for economic regeneration in many rural areas.

The report acknowledges that this type of tourism is seasonal in nature but requires more new product development, better marketing and market intelligence and increased collaboration both locally and nationally. However, there are opportunities to develop the sector and enhance the visitor experience. In particular the increase in “Staycations”, a growth in the AB population, a weak pound, increased public interest in heritage and culture, new product development and possible links between tourism attractions and food producers.

Rural Heritage tourism is not just about visitors to Scotland but also visitors from within Scotland. With the Clyde Valley situated within easy driving distance of both Glasgow and Edinburgh this is arguably a greater opportunity for the orchard than external visitors.

The area has good road links to the Central Belt, as indicated by the following average daily traffic flow figures from the Department of Transport.

Average Daily Traffic Flows 2011

StartJunction Weighhouse Rd, Carluke A70 A72 A73 A72 A73 A70 TOTALS

End Junction A721 A702 LA boundary A72 A70 A72 A743

Link Length (km)

Pedal Cycles

3 12.3

3 4

0.5 15.4 8.9 15.4 3.8

4 0 0 0 10 21

Cars Taxis

Buses Coaches

Light Goods Vehicles

All HGVs

All Motor Vehicles

56 27

10530 1918

40 26

2389 425

1235 224

14250 2620

92 9 20 9 35 248

15319 3301 3064 3301 4833 42266

246 27 66 27 84 516

2584 555 680 555 537 7725

1042 304 535 304 358 4002

19283 4196 4365 4196 5847 54757

Motor cycles

Clearly during holiday periods these figures will be significantly higher.

In addition, the UNESCO world Heritage site at New Lanark is estimated to attract around 400,000 visitors a year and there is real potential to cross promote the Clyde 54

Valley Heritage Orchard with this venue, helping to create a more diverse attraction and retain people in the region for longer. It also offers a potential outlet for any value-added product that the group produces in the future.

Open Days Many of the orchard groups around the country hold open days, usually either Apple Days in the autumn or Blossom Days in the spring, or both. Tapping into the increased interest in the provenance of food, these provide an considerable opportunity to both promote the orchard and the regeneration work being undertaken and to sell fruit and any added value products.

Newburgh Orchard Group in Fife organise three separate Plum and Apple markets each year to sell fruit directly to the public with proceeds going back to the growers.

Such activities help to draw visitors into the area at times of the year when outside the main tourist season. They also help to promote the activities of the group and provides PR opportunities in local and regional press, further enhancing the brand and its values.

55

Conclusion Discussions with possible added-value collaborators such as Strathaven Ales and R&W Scott indicate that there is an interest from processing businesses in working with the Clyde Valley Orchard Group and a real market potential for products made from the fruit grown in the area. However, there will need to be a high degree of co-operation and coordination amongst the growers in order to exploit this potential as these even though they are keen to work together these businesses will still want to conduct any relationship on a commercial basis.

This will generally mean that they will only want to be dealing with one point of contact and will expect a minimum quality standard for the fruit used in the products. David Craig also indicated a willingness to help the group with branding and routes to market and he is also interested in planting some land down to orchard.

Open days, markets and small volumes of ‘home produced’ added-value products have many benefits and help provide a small income to the group.

However, unless

members of the group, or an entrepreneurial individual, have the time and resources to develop and grow a product it is likely that this will only lead to low level sales volumes that will not provide an incentive for the orchard to develop.

The current volumes of commercial fruit may well be an advantage as, providing they are large enough to interest the processor, it will provide an opportunity for all parties to experiment, learn and develop relationships. As products are developed, brought to market and sales volumes begin to grow this will provide an incentive for other growers to join the group or existing growers to increase the size of their orchards.

The choice of how the group develops is down to the ambition of the individual growers but whichever added-value route they decide to pursue a structure will need to be developed that meets the needs of both their potential partners and their customers.

56

Appendix 1

57

This report is funded by:

58