SAOS Update Spring '24

Co-ops’ Capacity for Resilience, Sustainability and Growth on Show at SAOS Conference ‘24

The SAOS conference in January was, as ever, a pretty inspiring place to be. We had a fantastic line up of speakers and we were treated to some fascinating insights, making sure there was plenty to think about long after the day was over.

Key to our plans for this year was ensuring that our co-op members featured strongly and we were proud to share just a few of their endeavours and achievements within our sessions focused on Resilience, Sustainability and Growth.

Day delegates - 157

Dinner guests - 112

61 Slido Questions*

76% participation in Slido

3 themed sessions

8 Speakers

2 Co-op Member showcases

1 Machinery Rings video showcase

1 ERB Award Presentation

1 ‘25-years service’ presentation**

3 ‘pizza box’ presentations***

£2841 raised for RSABI

Huge thanks to 2 invaluable sponsors

1 ‘Tonne’ of new ideas

Thanks to everyone who gave feedback on the day, this was overwhelmingly positive, and we’ve taken on board the comments in the areas that we know can be improved on. We’re well aware that we couldn’t keep up with many of the *61 questions on Slido, so we posed some more of these to our speaker Nicolai Hansen after the conference (see pages 2&3 overleaf). We’re already working on plans for 2025 and hope you’ll join us on Thursday the 16th of January 2025, when we will be at Crieff Hydro - please save the date and note the venue change!

Our ‘summary’ above also includes our presentations to our long-serving staff, **Hamish Walls has been with SAOS for 25 years, congratulations to him.

And regarding *** there was a bit of speculation around the contents of the boxes that were presented to Alan Stevenson, Jim Booth and Bob Yuill (who are all stepping back a bit to part time roles, with Bob also moving over to our Smart Rural business). The ‘pizza boxes’ all contained a newspaper from the day that they joined SAOS (the second time for Bob!!)

If you missed the conference, or if you want a recap, you can catch up on much of the day on our website at: https://saos.coop/whats-new/news/did-you-miss-the-saos-conference-2024-catch-up-here

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Andrew Moir Receives 2024 Ed Rainy Brown Award

The 2024 Ed Rainy Brown Memorial Award has been presented to Andrew Moir in recognition of his many years of co-operation and collaboration in farming, food, and rural Scotlan d. Andrew received the quaich at the SAOS Conference Dinner from Ed’s widow, Katy Rainy Brown.

Andrew has been a key player in Scottish agriculture for several decades and a great source of encouragement and good sense for youngsters and new entrants to the industry, embodying cooperation in Scottish agricultural with passion and enthusiasm.

Announcing the winner, SAOS Chairman John Hutcheson related how Andrew has served the Scottish farming industry in a host of different ways over many years, including as Chair of SAOS members, Ringlink Scotland Ltd and Scottish Quality Crops, and Vice Chair of the Scottish Machinery Rings Association. He has also held prominent roles with NFU Scotland, who jointly sponsor the award. Commenting on Andrew’s award, NFUS President Martin Kennedy said: “It is an absolute pleasure to see one of the industry’s true stalwarts receive this award from SAOS and NFU Scotland given the huge shift that Andrew has put in on behalf of both organisations and the wider farming sector.”

Within the wider industry, Andrew is a key member of the Agricultural Reform Implementation Oversight Board (ARIOB), which was established to support the implementation of agriculture policy reform. A fellow of the Royal Agricultural Society, he is also past Chair of AgriScot, and Voluntary Initiative in Scotland, and was on AHDB’s Combinable Crops Board for several years. Andrew runs his contract farming business at Mains of Thorton, Laurencekirk.

Rauction Raises Smiles and Funds for RSABI

A massive ‘THANK YOU’ to everyone who got involved with the post-conference dinner ‘rauction’ (our raffle-cum-auction combo).

We were chuffed to bits to raise over £2800k for RSABI after gift aid. Once again a few smiles were raised too, thanks to our ‘rauctioneer’ SAOS/Scoteid’s Bob “I’ll tell you a wee story” Yuill, who did an excellent job of the proceedings once again. Rumours have

been flying since we heard that Bob was stepping away from SAOS for a new role, ANM are remaining quiet so far... Thanks in particular to all those who donated prizes and some fabulous lots.

Additional Q&A’s With Conference Speaker, Nicolai Hansen

We put some of ‘the ones that got away’ to Nicolai Hansen, who was gracious enough to share some more of his thoughts with us. For those who weren’t at the conference, Nicolai is the former CEO at KMC Amba in Denmark. Since 1933, farmer co-op KMC Amba has been growing, developing, and producing potato starch-based ingredients and now serves over 80 countries. Find out more at: www.kmc.dk/about-us-who-we-are

What first attracted you to work with potatoes?

Initially it wasn’t the potato but the challenge of finding ways to compensate KMC’s owners for the loss of €12 million in annual EU subsidies.

I saw nothing special in potatoes. We have a saying that the most stupid farmers grow the biggest potatoes! (i.e. it doesn’t take much to grow it!) As I learnt about its rich nutrients, carbohydrates, proteins, fibres, antioxidants etc, I became aware of its functionality, and fascinated by its life-giving power, diversity, and potential. At KMC we developed the slogan “Humble Origins – Global Capabilities”. This motto, for me, nicely frames the potato’s contrasting qualities.

How many farmer shareholders and farmer directors are there at KMC and how do they get elected?

KMC is a sales and development company jointly owned by two independent potato starch co-ops. These each cover their own area and are owned by local potato farmers. Approx 1000 potato growers are associated with the two.

continued on page 3

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Additional Q&A with Nicolai Hansen (continued)

The Board for each is composed of potato growers, elected at the AGM. A board member is elected for a 2-year period and half of the board is up for election each year.Each factory is represented on KMC’s board by the chairman, deputy chairman and secretary. So six in total. Each year, these six elect KMC’s chairman, deputy chairman and secretary.

How does KMC get specialised knowledge onto the Board to provide strategic expertise regarding food industry nutrition and scientific innovation?

The democratic election process for the board members has meant that only potato farmers have been represented on the board - typically middle-aged and male. With the increasing complexity of running an international company, the board risks becoming “blind” in areas where the farmers’ expertise is the least, such as market understanding and insight, international business operations and organizational aspects such as training, education, motivation of employees, etc.

However, if you look at KMC’s successful development over all the years, the composition hasn’t been detrimental to the company. On the contrary, KMC’s board has understood that its lack of competencies must be taken care of by the company’s day-to-day management. Therefore, a close, open, and trusting relationship between board and management is essential in this type of company.

Increasing board diversity and external expertise have been discussed for some years and may soon become reality. How difficult has it been to raise capital for KMC’s innovation and growth? Do farmer members contribute to investment?

In my time as CEO, KMC’s investments in technical equipment and business development were financed by the company’s operations. They were agreed and approved by the board within the annual budgeting process.

Fortunately, KMC always performed better than budgeted so it wasn’t necessary to raise additional capital. The positive development made it possible to reimburse the farmers with higher payments than expected. A pure winwin. If results had been less positive, it would have meant a lower payment.

Additional contributions from the co-op owners have only become relevant a few times in KMC’s history. One was for a major investment in a new business area.

Do all members contribute equally if capital is needed? Or how do you manage any difference?

Members’ contributions are related to the number of delivery rights they own. These are certificates of ownership and specify the volume a farmer has the right and duty to deliver to the co-op.

With further growth might KMC recruit farmers from outwith Denmark? And do potato pests like potato cyst nematode restrict growing areas?

There are still good opportunities to expand the potato area in Denmark, so it’s unnecessary to attract foreign growers. There have been minor incidences of potato nematodes. These have led to restrictions meaning potatoes can only be grown on the same area every third year. Potato diseases are being taken very seriously. Investments in developing new, resistant varieties and gentle plant-protection techniques have increased significantly.

What do you think Scottish potato farmers can learn from the success of KMC?

Growers face the same challenges, no matter where they live, so we can all learn from each other. We regularly went on study visits to foreign colleagues. These visits were always inspiring and informative.

I find it difficult to pinpoint specific success factors. If I must, I would mention KMC’s co-op ownership structure which secures full control of the entire value chain from the field to the end customer. This ensures that the ongoing value creation, which takes place from one link in the chain to the next, ends up in the farmer owners’ pockets.

How do you think Scottish agriculture can learn from the success of Danish co-ops and co-operation?

There are many similarities between Danish and Scottish agriculture. We both have a population of 5-6 million people. We are located at the same latitudes and grow many of the same crops. The agricultural and food sectors have great importance in both countries and, turnover- and employment-wise, we’re almost on the same level.

Food that is “from Denmark” or “from Scotland” has international appeal as both are associated with high quality and high food standards.

We do differ in one area though. With its location in the UK, Scotland has a very strong position in a large domestic market. Denmark never had this big home market and has historically been forced to cultivate foreign markets for its products. This has meant a strong internationalization of the industry, which means that most Danish companies today have an export share of more than 90%.

I believe that Scottish food and agriculture has the potential of building similar strong positions in international premium segments worldwide. But it needs a long-term strategy, and it will take time, and constant effort, to get there.

Prestigious Miskelly Award for Rory Christie

Huge congratulations to SAOS’s current Vice Chair, Rory Christie, (AKA The Dairy Ninja) who was recently announced as the winner of the prestigious NFU Scotland John Miskelly Award ‘for dedication and commitment to Scottish Agriculture’.

Rory wasn’t at the NFUS dinner in February to collect his award as he had been speaking in Ottawa at the Dairy Farmers of Canada conference.

Since 2011, Rory who farms at Dourie, Port William, with his brother Gregor, running a 200-sow pig business, and a 1100-cow dairy enterprise, has been a key member of NFU Scotland Milk Committee. Rory has been integral in driving the work to secure fairer dairy contracts for all, working collaboratively with the other UK farming Unions and ensuring the best outcomes for Scottish dairy farmers. It is for his service to the dairy sector and his role in the milk contract negotiations in particular that he has received the 2024 Miskelly award.

The award was established in memory of John Miskelly, an inspirational staff member with NFUS, and was presented by John’s family following his death in 2006. The trophy recognises those who have shown outstanding dedication and commitment to NFU Scotland and Scottish farming and crofting.

Commenting on Rory’s success, Sally Williams, Vice-Chair of NFU Scotland’s Milk Committee, said: “The uneven playing field facing farmers when it comes to dairy contracts is an issue that has existed for decades resulting in many coming out of the sector all together. Recent figures suggest that Scotland’s herd numbers have declined again while those that remain have increased cow numbers slightly. This highlights the uphill struggle smaller producers continue to face.

“That said, progress is being made and we now have real momentum with the proposed Statutory Instruments identified for milk contracts. This is a big win for NFU Scotland and Rory has proved invaluable throughout this process. His vast knowledge of the dairy sector and its complexities has strengthened our negotiating power as we have worked collaboratively with the other UK farming Unions to iron out the fine details. He is a pioneer and determined to deliver the very best for the Scottish dairy sector as possible.”

AKIS - SAOS Calls for More Focus on Co-operation

SAOS is calling for farmer co-operation and supply collaboration to be recognised and rewarded within the government’s future advisory, knowledge exchange, and innovation programmes.

SAOS was one of numerous industry organisations and individuals recently asked to respond to the Scottish Government’s “An Agricultural Knowledge and Innovation System (AKIS) in Scotland: a paper for informal discussion”. agri co-ops, boasting 25,000 farm members, serve as an excellent examples

Our response, on behalf of our members, highlights our belief that co-operation and collaboration play an important role in the future of farm advisory, knowledge exchange, and innovation: Scotland’s of effective knowledge and innovation flows. These co-ops exhibit exceptional governance, management expertise, and know-how, successfully aligning innovation, market demands, regulations, and policies.

Other News & Views in Brief

Recent Video Releases

Our ‘video studio’ was busy ahead of the conference, producing a great video showing how the success of Scotland’s Machinery Rings tied in perfectly with our conference themes of resilience, sustainability and growth. If you missed it, you can watch it (and check out our other recent additions, including one on C2Network’s Collaboration on Space Data event): https://www.youtube.com/channel/ UC-uEGPY2Cs2DraH_KptFgwQ

NEW Co-op Shorts Videos

We’re looking into the possibility of creating a new bank of video co-op profiles, producing a small number a year, similar in length and quality to the MR video above.

We have included several specific excellent examples from some of our members, these include:

East of Scotland Growers, Angus Growers and Scottish Borders Produce showing resilience in the face of labour challenges.

First Milk’s approach to regenerative farming and tackling carbon emissions across its business and members’ farms.

Scottish Agronomy’s innovative approaches and cost-effective knowledge sharing solutions for members.

You can read our response in full at: https://bit.ly/4bNXgii

Short videos such as these are a great way to promote the benefits of your co-op and we’d like to produce a bank of videos that would work well for SAOS as well as individual co-op members.

Producing these to a high standard is obviously expensive, meaning a contribution would be required from those participating, but this would still mean a considerable saving on ‘external’ prices. Please register initial interest by contacting: jennifer.thompson@saos.coop

Empowering Tomorrow’s Leaders for a Resilient Future

Our leadership development initiative, Growing Tomorrow’s Leaders, developed in collaboration with an industry

steering group, and supported by NFU Mutual and NFU Scotland, has launched the search for leaders, and prospective leaders, within the rural and agricultural sector to join the ‘24/25 programme.

Celebrations in Dundee later this month will mark the successful graduation of the latest participants, and we’re now inviting applications for the next ‘run’ from driven self-starters keen to learn how best to embrace change and uncertainty.

“Great leadership is a mindset that can be cultivated at any stage of your career.”

Tim Bailey, SAOS Chief Exec, explains: “We want to improve resilience, efficiency and productivity in the industry, so we’re searching for leaders who are not only willing to adapt, but are eager to drive positive change within their organisations and communities.

“At SAOS, we recognise the vital role that collaboration plays in fostering innovation and resilience within Scotland’s rural and agricultural sectors.

“Our programme stands out as it’s not only developed for the sector, but by the sector itself, ensuring its relevance and effectiveness in addressing the real challenges faced by our industry,” he adds.

Now entering its third year, the programme has equipped individuals from a diverse range of backgrounds, including large rural organisations, farmer-owned co-ops, SME’s and the selfemployed, with the essential tools to navigate an ever-evolving industry.

Developed in response to the pressing need for resilient leadership within Scotland’s rural and agricultural landscape, the programme nurtures flexible mindsets, establishes mutually-supportive networks, and instils innovative thinking among participants.

Stephen Hibbard of the Leadership Factory, who facilitate the programme, emphasises the importance of effective leadership in navigating challenges: “Leadership is critical to setting direction, organising delivery, and creating a healthy working culture in any organisation. Great leadership is a mindset that can be cultivated at any stage of your career.”

Participants of the programme attest to its transformative impact on them and their confidence for the ‘next steps’. Those interested in applying for the 2024/25 programme can visit the SAOS website to learn more - we have participant case studies and even a podcast on the programme. Our GTL intake is deliberately limited to small numbers each year so we recommend submitting applications early as applications close Friday 3 May. Find out more (and you can also apply now) at: www.saos.coop/events-and-training

Agri Export Hub Returns to Berlin supply chains

The Scottish Agri Export Hub was back at Fruit Logistica in Berlin in early February to provide a platform for the primary agriculture sector to showcase Scotland to a global audience. Fruit Logistica is the world’s most important trade fair for the fresh produce industry where exhibitors from over 90 countries gather on-site in Berlin to engage with trade visitors from 140 countries.

Patrick Hughes of SAOS, who leads on the Hub told us: “Our presence wouldn’t have been possible without the support of key funders UK Gov Department of Business & Trade, the Seed Potato Organisation and James Hutton Limited. The event once again proved hugely successful for the potato, soft fruit and research businesses who utilised the meeting space laid on by the Scottish Agri Export Hub. In addition, the presence allowed the Hub to explore possible new market opportunities for seed potatoes, which is key to growing our export potential, these included meetings with officials from Ghana, Kenya and Mauritius.”

First Milk Acquires Dorset-based BV Dairy

First Milk recently announced that it has completed the acquisition of BV Dairy (Blackmore Vale Farm Cream Limited).

BV Dairy is a successful manufacturer of specialist chilled dairy products based in Dorset. It services customers throughout England, Wales and Scotland, offering a comprehensive end-to-end solution to customers across food manufacturing and food service, as well as offering co-manufacturing to exciting growth markets such as the home meal solutions and gut health sectors, offering considerable opportunities for the future.

Commenting on the announcement, Shelagh Hancock, Chief Executive of First Milk, said: “I am delighted to complete the acquisition of BV Dairy, a successful family-owned business, which shares many common values with First Milk – a focus on people and community, environmental performance, exceptional quality and long-term value creation. We look forward to welcoming the wider BV Dairy family into our First Milk family.

“The BV Dairy business has strong customer relationships and a reputation for quality and service across food manufacture and food service. This provides a genuine extension to our business, extending our manufacturing and market reach, offering a platform for the further growth and development of our business.”

Farmer director and vice-chairman, Mike Smith, added: “This purchase builds on the existing strengths of First Milk and will bring wider benefits, adding value for our members whilst creating opportunities for our colleagues and enabling us to extend our regenerative positioning into a broader range of dairy products and customers. This is a great step forward as we work together to secure the future.”

Jim Highnam, Managing Director of BV Dairy, added: “Having made the decision to sell the business, we wanted to ensure that the new owners would provide a secure future for our customers, colleagues, farmers and suppliers. As such, I’m pleased to finalise this transaction and see BV Dairy become part of First Milk, as both businesses share a down-to-earth, pragmatic approach, balancing the needs of all stakeholders. I look forward to working with our new First Milk colleagues to continue to grow and develop BV Dairy.”

ANM Group Extends Business

New Store for Tarff Valley at Longtown Mart

Tarff Valley recently added to its store portfolio with the opening of a new outlet at Longtown market.

The shop is open on market days to allow those visiting the mart to take advantage of a range of agricultural goods and essentials, including animal health medicines, clothing, footwear and much more. The outlet is open on market days from 8.30am - 5pm.

Tarff Valley’s existing store in Longtown, located on Brampton Road, is open six days a week and continues to operate as usual, offering a full range of products and services.

ANM Group has expanded its operations into the central belt with the purchase of the Glasgow-based auction business Sweeney Kincaid Ltd. Established in 1991, Sweeney Kincaid specialises in the sale of industrial, commercial, and business assets, vehicles and equipment.

Sweeney Kincaid will become a subsidiary of ANM Group, and the move is seen as a key opportunity for ANM, whose headquarters are in Thainstone, to open more diverse routes to market in, and from, the central belt, across the south of Scotland and the north of England.

Chief Executive of ANM Group, Grant Rogerson, said: “I am thrilled with this exciting acquisition for ANM Group. Sweeney Kincaid brings a wealth of experience within the Industrial Asset Sector across the UK which presents a myriad of exciting opportunities for our business, and in turn will benefit our members and customers. Opening up new markets, new technologies and innovating to improve the customer experience are

important projects for the Group alongside cementing our leading position in the northeast.”

“We are pleased to welcome Russell Kincaid and his team to ANM and look forward to working together.

Sweeney Kincaid shares our values and I have no doubt will make a strong contribution to the Group as we continue to expand our trading area. The purchase demonstrates the strength of ANM, and builds on the stability of the Group, further securing our long-term ambitions and industry leadership.”

Russell Kincaid, Managing Director of Sweeney Kincaid added: “We’re excited to be joining ANM Group, bringing together two industry leaders will create opportunities, enabling us to extend the range of services we can offer to our clients, and we look forward to growing our business as part of the ANM Group.”

The acquisition, which includes a six acre site at Hillington, Glasgow, is seen by both companies as mutually beneficial to enhancing their competitive advantage.

What Can The Knowledge Bank Do For You?

Andrew Niven, Scotland Food & Drink’s Strategic Market Intelligence Manager, reminds us all about this great resource.

Focusing on today’s markets and tomorrow’s opportunities, The Knowledge Bank works across the Scottish food and drink industry from the farm to the fork to stimulate thinking and encourage action.

The work of The Knowledge Bank is focusing its thinking and work around what’s happening in, and what the opportunities are, within the UK market-place and key international markets, interrogating some of the mega trends that are developing and looking into the future to identify emerging trends, along with how consumers are shopping and what customers are asking for, not only in the grocery sector but also foodservice.

Supported by Scottish Government via the SF&D Partnership Food and Drink Recovery Plan, the insight that is being developed can be accessed by any business involved in the Scottish food and drink supply chain.

Market insight isn’t just for big brands and big companies and those involved in large scale manufacturing, it’s for everyone involved in growing, producing and making food and drink. Data and insight are different things, one informs the other and insight is the result of applying human thought, reasoning, knowledge and experience to analyzed data, to produce thinking that might then be able to stimulate change or identify an opportunity for new products, new sales or to grow existing sales.

And as well as using insight to help us understand what’s happening in the market, it also helps us observe how consumers are behaving, what makes shoppers tick and what the competition is up to. We can also use insight to understand the cost of ingredients, to determine demand and supply and to benchmark against competitors. There’s also the ability to use insight from trends to create ideas for new products including new species and variants – and it’s not just about products, it’s about packaging and sustainability and new channels to market such as e-commerce and selling directly to consumers. Importantly for the Scottish food and drink industry, The Knowledge Bank is helping to get hold of insight that is relevant for today’s markets and then disseminate this to help co-ops, businesses and supply chains in Scotland use this in the heart of business strategy and planning. Our depository of insight and intelligence can be found on the website where you can also sign up for the monthly newsletter with information about The Knowledge Bank’s work and events: https://foodanddrink.scot/helping-business/the-knowledge-bank/.

innovation

Join the C2Network ‘Waste to Worth’ Webinar on 27th March!

Adding value to agri co-products is one of C2Network’s priority themes, as identified by SAOS’s co-op members when the Network was launched in 2022.

Since the first webinar on this topic, the C2N team has been really enthused by the collaborative partnership which has developed between Grampian Growers and Robert Gordon University, and which looks at bio refining potato haulms into bioactive compounds for a variety of uses. This biotech collaboration will be presented at the Industrial Biotech Innovation Centre’s Annual Conference in March and demonstrates how agri coops are well-positioned to exploit a market opportunity from biorefining crop residues on farm to added value products for niche markets.

In 2024, the C2Network will continue to inspire new thinking on the decarbonisation of farming using the principles of the circular economy.

The “Waste to Worth: Farming for a circular economy” webinar will take place on the 27th of March, with an impressive trio of speakers who will inspire the audience with examples of the opportunities for an agricultural circular economy.

a circular economy and who works collaboratively with agri co-ops. He’ll kick off the webinar with his insight on implementing green biorefineries for a more resilient and sustainable livestock sector.

He’ll be followed by three speakers from Biochar Innovations (Mike Highley, Saran Sohi and Simon Shackley). They will discuss the missing gap in Biochar combining their expertise in soil science, agronomy and entrepreneurship to formulate, design and apply this product in the field. They’ll illustrate how their journey benefited greatly from working together with agronomists, farmers and scientists.

Final speaker, Matthew Dingle from Upcycled Plant Power will share how their innovative broccoli harvester and processing technology enables them to maximise the use of crop biomass into ingredients fit for human consumption thus creating new market opportunities.

A final interactive Q&A session will no doubt continue the conversation and fuel new thinking and partnership opportunities.

Joining the team will be James Gaffey, who is widely known for his work in biorefining and innovation in

To find out more and join the webinar on 27th March, go to: https://bit.ly/CTNWastetoWorth or email patricia.rojas@saos.coop.