update
Supply Chains Co-operat ion
Technology
Collaborat ion
Innovat ion Dat a
Summer 2021 - news from, and for, Scotland’s farmer co-ops
It’s Time to Shout About What Farmers are Doing Right! As usual, this SAOS Update is filled with positive stories of interesting work and exciting developments that are happening with our co-ops and in our supply chain work. There’s so much going on in fact that, for the first time, we have an SAOS update that is 12 pages long! So we are well aware that there is much to be positive about and we hope you enjoy reading about it! Our Jim Booth (right) wrote a piece in the Scotsman recently and we thought we should share it as it really strikes a chord: “So many false accusations are thrown at the farming sector when it comes to the supposed ‘climate crimes’ of agriculture. I’m not going to dwell on those, suffice to say that they are a cause of great frustration for the majority of farmers, especially here in Scotland and across Britain, whose farming practices tend to be a world removed – literally – from the provocative imagery portrayed by antifarming lobby groups. The truth, at least for a great many of the 24,000 farmer members of Scotland’s agricultural co-ops, is that farming can in many cases be the hero of the climate change battle, not the villain. The challenge is that as individuals, farmers’ voices can often be lost in the maelstrom of social media and news feeds. Working together is, I believe, the key. Whilst farmers working individually may be doing great things in terms of managing soil for carbon sequestration, investing in renewable energy or cutting their use of fossil fuels, collectively they can deliver even greater benefits. When individual farmers co-operate, pool their resources, buying power and critical thinking, then many more technologies, advisory services and knowledge transfer become available. It is also evident that when neighbouring farming units are drawn together to enhance habitat and biodiversity, the benefits on a landscape scale can be significantly greater than where the work is done in isolation. There are many examples of Scotland’s farming co-ops taking a leadership role in the fight against climate change. In a recent episode of the OnFarm podcast, I spoke with Mark Brooking of First Milk – the milk processing and marketing co-op which has over 200 farmer members in Scotland - about how his team has taken a lead in helping their members. (See more on our Climate Change podcast series inside.) The main message is that farmers are very often already doing great things. Co-ops like First Milk are helping by sharing the best practice and learning between members and also, importantly, relaying good news and positive stories up the supply chain to give retailers, and in turn consumers, confidence that their food is produced in a climate friendly manner. When farmers come together, as in co-ops, it makes it easier to access the best advice and monitoring tools and therefore gives farmers the confidence to set and achieve targets, such as ultimately aiming for Net Zero. In the First Milk example, their target is to help their members, as a whole, cut emissions by 50 per cent by 2030 and achieve Net Zero by 2040. This work to cut emissions is ongoing on many farms, and whilst things like cutting use of artificial fertilisers and making better use of organic manures, makes great ‘climate sense’, they also make huge economic sense for individual businesses too. Technology in the form of new precision farming kit is often a key part of the solution for farmers wishing to make more targeted use of inputs such as manures, fertilisers, seed and fuel. Here again, Scotland’s co-ops have a huge leadership role to play, with Machinery Rings in particular allowing farmers to share and employ high-cost equipment they might otherwise be unable to justify investing in. Virtually no other industry has the potential to cut emissions and positively fight climate change by actively capturing and locking up carbon. Farmers are already getting it right in many cases, and with greater co-operation and collaboration, Scotland’s farmers can have a climate friendly future to be proud of.” We’ve gone digital! This SAOS Update is the first to be available as a ‘flipbook’ PDF version. We’ve only sent a printed version to our Member Directors. We’d love to hear what you think and if you’d prefer to receive it directly by email rather than in print - you can view it at: https://saos.coop/whats-new/quarterly-newsletters/ please have a look and let us know what you think! Email: jennifer.grant@saos.coop
SAOS Board and Council Update
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As we said in our last issue, in reference to the upcoming Governance workshop,the key to success for every co-operative business is great governance. We’re delighted to have the governance of SAOS in good hands. Here are the updated Board and Council lists following our AGM in June:
SAOS Board Members:
Additional Council Members:
‘External’ Council Members:
John Hutcheson, Chairman (GrainCo)
Liz Barron-Majerik (Lantra Scotland)
Rory Christie, Vice Chairman (MSA)
Michael Bayne (Borders Machinery Ring)
Tim Bailey (SAOS)
Amanda Brown (SAOS Staff)
Penny Montgomerie (SAYFC)
Gareth Baird (Scott Country Potatoes)
Richard Butterworth (Scotlean Pigs)
Scott Walker (NFU Scotland)
Gary Catto (Highland Grain)
Stephen Cameron (Scottish Shellfish)
James Withers (Scotland Food & Drink)
Peter Chapman (Ringlink Scotland)
Nina Clancy, Independent Director (RSABI)
Andrew Faichney (ESG)
David Kilshaw, Independent Director (Insignia Technologies)
Tom Pate (Scottish Agronomy)
Andy McGowan (Scottish Pig Producers) Jane Mitchell (ANM Group)
Andrew Marchant (Tarff Valley) Anne Rae McDonald (HBS) Jonathan Robinson (United Farmers) Ian Watson (Farm Stock)
New Chair and Vice Chair for SAOS Following SAOS’s recent AGM, John Hutcheson has been appointed as the new Chairman, succeeding Mark Clark. John, who farms at Leckerstone, near Dunfermline, is a director of GrainCo Scotland and Vice Chairman of SAOS’s newest member, Scottish Quality Crops (SQC). Rory Christie of Dourie Farming and the Milk Suppliers Association takes on the role of Vice Chair. A member of the OatCo producer group, John works closely and successfully with Quaker PepsiCo, sharing the benefits resulting from a growing market for oat products. This relationship is an excellent example of what can be achieved by collaborative supply chains. As a former director of Tay Forth Machinery Ring, having been a member since the ring was established in 1989, John (top right) has sat on the SAOS Council since 2011. His input and experience have been valued ever since and he was elected to the Board just a year later, in 2012. John commented: “I think of SAOS very highly and I’m proud to take on the role of Chairman. Having been involved for over a decade now, and having watched the organisation expand and develop, I have no doubt that there is a great deal more to come from SAOS, some of it that isn’t even on our radar yet. The ability to think outside the box is innate and that, coupled with the networks and know-how to get things done, is invaluable, not just for co-op members, but for the wider food and farming industry. “SAOS’s reach gets ever broader and their ethos and drive to help people to work together more effectively has never been needed more, particularly for food producers and their supply chains, and with the urgent need to produce more with less for a sustainable future.” Rory Christie added: “For a relatively small organisation, SAOS punches well above its weight. Having benefitted from their skills, and the ability to envisage new ways to turn a problem into an opportunity, I’m really passionate about the business. “The fact is that much of SAOS’s work and their expanded businesses, ScotEID and SmartRural, benefits the whole of Scottish agricultural and that’s quite something. It’s definitely a time of great opportunity; there are many nettles out there to be grasped, but SAOS has proven pedigree in helping those who are up for a challenge.” Rory (pictured right) concluded.
Alan Clarke (Quality Meat Scotland)
If you’re interested in working together, for the benefit of all our members and the wider industry, please drop a line, stating why you’d like to be considered for the SAOS Council, to: tim.bailey@saos.coop
Spotlight on SAOS Independent Director, David Kilshaw
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We thought it was about time that we caught up with David Kilshaw OBE, who joined the SAOS Board in November. As SAOS was founding member organisation of Scotland Food & Drink, we have already worked with David for many years, so we are delighted to have him ‘onboard’ at SAOS. David chaired the industry strategy group that was the pre-cursor to Scotland Food & Drink, and chaired the stakeholders group which created Scotland Food & Drink. He then served as Vice Chair for seven years before a three-year term as Chairman. In 2006, David was awarded an OBE for services to the Scottish food and drink industry. You’ve had a few months now as an SAOS Board member, tell us how you’ve found the experience so far? I’ve really enjoyed it so far. I’ve been very impressed by how professionally run the organisation is, with an extremely committed and enthusiastic leadership and management team. You’ve known about SAOS’s work for quite some time through the SF&D Partnership, is there anything you’ve learned that you’ve found surprising? I’ve been pleasantly surprised by the depth and range of the activities that SAOS is involved in. There are also some very exciting projects which are on the cusp of being delivered which I believe have the ability to help commercial activity and substantial revenue. I also hadn’t realised the scale of the activity with ScotEID – very impressive. You are involved with various food industry companies that sound fascinating (David is Chief Executive of Insignia Technologies, the world-leading, smart packaging business helping the fight against food waste. He is also Chairman of seafood business, Joseph Robertson, and free-from bakery business, Lazy Day Foods). Tell us more about these. They are three very different but remarkable businesses. Joseph Robertson is a 143 year old family run business based in Aberdeen. The company specialises in value added chilled and frozen fish products to the major supermarkets in the UK. They produce extremely high quality products using responsibly-sourced and sustainable, raw materials. Lazy Day Foods is an incredible success story, specialising in hand baked, gluten free and vegan cakes, biscuits and tray bakes from their dedicated free-from bakery in central Scotland. They supply the majority of the UK supermarkets both with the Lazy Days brand or retailer own label. Insignia is a company which was a spin out from the University of Strathclyde. Insignia develop a range of unique and innovative smart labelling solutions. These colour changing smart labels act as time-temperature indicators (TTIs) and have been developed to be a cost-effective solution for a range of smart packaging applications. The labels are designed to reduce food waste, enhance food freshness and improve food safety. The business has also more recently ventured into new markets with applications in the medical devices & PPE sectors. The company has a very enthusiastic small team based in central Scotland. If you could change one thing about Scotland’s food and farming industry, what would it be? The industry has made significant progress in terms of collaboration and partnership over the last 15 years, but there is still more work to do. Specifically, we need a more joined-up approach in supply chains, and in particular in the fish processing sector. The sector, in my opinion, is still too fragmented and there is also work to do in raising standards in parts of the primary fish processing sector. What do you think are the biggest challenges and opportunities ahead for SAOS in particular? The biggest challenge for SAOS, and the industry as a whole potentially, could be funding moving forward. Both the Scottish and UK governments at some point are going to have to pay for the significant costs incurred during the COVID pandemic. Let’s hope this doesn’t mean less activity and funding from an industry point of view. Climate change and food waste targets are also major challenges to be faced by the industry in the future. From a SAOS perspective, revenue generation from some of the newer projects such as Smart Rural will be essential. It sounds like you may not have too much of it but, as we finally getting back to more normality, how do you like to spend your free time? I like to spend time outdoors and spend a lot of my free time cycling and walking. I’m based in Aberdeen so am lucky to have some wonderful countryside right on my doorstep. Where are you longing to go to once we can travel more freely again? I’m looking forward to spending more time with my family who are in other parts of the UK and abroad, and I can’t wait to get back to Anfield!
Prince Charles Calls for Collaboration to Save Family Farms
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We were delighted to hear recently that Prince Charles has maintained his positive views about co-operation. As part of SAOS’s centenary year in 2005, the Prince paid a visit to Girvan Early Growers (pictured right) and showed great interest in the co-op. He clearly understood the benefits of co-operation and the concept that it is an effective way to give more power to, and safeguard, family farms. Writing to The Guardian in June, the Prince of Wales suggested that small farmers could collaborate with a greater focus on combatting climate change amid an increasingly uncertain time for their businesses. He called for small farms in the UK and across world from a ‘global co-operative’ committed to producing food to high standards. His comments came as small family-run farms prepare for the loss of EU subsidies and controversial post-Brexit trade deals that could undercut them. We know from the latest survey figures for Scotland farms, that many which performed well in the previous year had a drop in income in 2019-20. Farms on average made a loss from agricultural activity of £25,500, over twice the loss made in the previous year. Agricultural output decreased by 5% on average. Input costs also increased by 2% overall. Losses to the business were offset mainly by support payments. Direct payments to farmers continued to have the largest impact on overall farm income. Income from agrienvironment schemes decreased 22% compared to 2018-19. The average farm net worth has decreased from around £1.5 million in 2014-15 to £1.3 million in 2019-20 in real terms. The amount of assets held by farms has decreased slightly, while the amount of debt has also risen slightly. Some farms have high business incomes but others are making large losses. In dairy farming, low performing farms are losing on average £42,400 while the high performers have an average income around £133,700. General cropping farms had the highest average income by farm type this year. Their average income was estimated at £69,100. Dairy farms also continued to have a high average income, but both farm types experienced a decrease in average income in 2019-20. These farms are sensitive to market prices and experience fluctuating performance as a result. (Farms which do not receive support payments - pigs, poultry and horticulture – are not included in the survey.) The article in the Guardian went on to say that, according to the Campaign to Protect Rural England (CPRE) overall, a fifth of English farms have disappeared in the past 10 years, with the rate fastest amongst the smallest farms. Almost a third of farms under 50 hectares disappeared between 2005 and 2015, its report showed. But Prince Charles suggested in his letter that small farmers could ‘come together’ to form a ‘global co-operative’ which had high production standards at its heart. “With the skills of ethical entrepreneurs and a determination from the farmers to make it work, I would like to think it could provide a very real and hopeful future.” he said. “To me, it is essential the contribution of the small-scale family farmer is properly recognised – they must be a key part in any fair, inclusive, equitable and just transition to a sustainable future. To do this, we must ensure that Britain’s family farmers have the tools and the confidence to meet the rapid transition to regenerative farming systems that our planet demands.” He added: “These farmers are some of the most hard-working and innovative small businesses and, in so many ways, we depend on them far more than most of us will ever know.” During last year’s lockdown period of the Covid-19 crisis, Prince Charles said the UK owed farmers ‘an enormous debt of gratitude’ for producing food. The Prince has also talked about his new found appreciation for the British farming industry which had developed because of the pandemic. raining page, as soon as it’s available at https://saos.coop/events-and-training
New Industry Skills Development Plans Underway
Keep a look out for a new and refreshed training programme from SAOS for Winter 21/22. Plans are well underway for an exciting new focus on industry skills development and we look forward to sharing the details very soon. As a sector, Scottish Agriculture has to be prepared and ready for the challenges and opportunities which lie ahead of us - in relation to evolving Brexit regulations, changing payment structures, the fallout from Covid-19, as well as continuing to be relevant and to have sustainably (environmental and financial) focused businesses. SAOS has been both a training provider and facilitator for more than ten years, delivering a range of governance, regulatory, and communications courses amongst others, and has seen first-hand the benefits of providing training to the co-op sector and beyond. We are planning a new programme of activity for the industry to support individuals to upskill and develop their personal effectiveness in the workplace. As soon as it’s available we’ll be sharing further details at https://saos.coop/events-and-training In the meantime did you catch everything from our conferece? Our A-Z of reasons to be positive is still available to view at: https://saos.coop/events-and-training/conference-2021/
saos news and views
Scottish Quality Crops Joins SAOS
in a cost-effective manner, whilst at the same time providing customers with independent verification that SQC growers demonstrate safe, traceable and environmentally responsible production of crops. We are delighted that SQC (Scottish Quality Crops) has become the latest addition to SAOS’s membership. Established in 1994, SQC took the lead in the development of farm and quality assurance schemes for combinable crops in Scotland, working closely with the farmer to help ensure Scotland’s produce meets the premium end of the UK, European and World markets. Scottish growers, in association with their trade partners, are responding positively to increasing consumer awareness about modern food production. The Food Safety Act 1990 placed an onus on every sector of the food chain, from production through to consumption, and SQC adopted a whole industry approach representing all sectors of combinable crop growing, wholesale and processing industries. SQC serves a dual role, adding value for growers by maximising access to multiple market opportunities
The SQC team of dedicated assessors work under the daily supervision of the contracted independent certification provider, currently Lloyds Register, insuring growers meet the standards required, allowing crop/farm certification and providing marketing passports. SQC Chairman, Andrew Moir, North East farmer already well known to readers as immediate past chairman of Ringlink and Current Chair of the Farmer led Arable Group on Climate Change commented: “Joining SAOS is a natural progression for SQC as it demonstrates our dedication to Scottish Agriculture and the associated industries as a not-for-profit organisation. Our focus is on sustainable cropping alongside promotion of assured Scottish combinable crops.” For more info go to: www.sqcrops.co.uk or contact SQC at: info@scottishqualitycrops.co.uk
“Our Food System is Broken! We Need New Thinking” In June, the first #RoutestoAction workshop was run by the Food Farming and Countryside Commission of the devolved inquiry series, ‘A Scottish Vision for Agroecology’. The webinar explored the challenges and opportunities of a transition to agroecology in Scotland. The #RoutestoAction series aims to help build the evidence, ideas and community of practice for a transition to agroecology in the UK by 2030 - with over 75 farmers, academics, NGOs, Government and members of civil society in attendance. The session was hosted by Professor Lorna Dawson and Mat Roberts (FFCC Scotland Inquiry Co-chairs) with presentations from speakers, Jim Booth (SAOS), Andrew Moir (Arable Climate Change Group), Ana Allamand (Soil Association Scotland) and Professor Christine Watson (SRUC), and covered a huge amount of ground in 90 minutes, including: •
The benefits of the co-operative model and why it works well in Scotland
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The potential of co-operatives in supporting farmers adapt to agroecology
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The importance of collaboration and knowledge sharing in progressing towards a more sustainable future
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The Scottish Government’s commitment to tackling climate change and reducing GHGs through industry groups such as the Arable Climate Change Group
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Key opportunities and barriers in Scottish arable farming’s transition to agroecology
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Findings from Soil Association’s field labs running throughout Scotland
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The importance of peer-to-peer networks and facilitation in Scotland’s rural communities
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Sustainable cropping systems and their potential use in Scotland
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Findings from FFCC’s latest report Farming Smarter
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The mechanism of an agroecology development bank to support a transition to agroecology for Scottish farmers.
There is a blog looking at some of the evidence and ideas gathered from the panel speakers, the audience’s comments and questions. This material will be used to inform the second phase of the Farming for Change research, due out later this summer. Read the blog and/or watch the workshop at: https://ffcc.co.uk/conversations/scottish-routes-to-action
Have you Heard...? We’ve Created a Best Bits Podcast
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“There’s never been anything so important as the climate change maze we have to direct our business and our members through.” This statement sums up a series of podcasts calling for farmers to collaborate and combat climate change together. Speaking in one podcast, Mark Clark, of Grampian Growers, continued: “Looking at rotations of, for example, bulb or potato crops, we now have only one and a half rotations to cut emissions by 75 per cent before 2030.” Rory Christie, Vice Chairman of SAOS, challenged farmers to work together before the power is taken out of their hands: “I think farmers are behind the curve on climate change. We need to face our responsibility and we need to work together, before someone else takes control of the situation and we are just told what to do.” Others cite examples of what’s already being done to combat climate change such as. Graham Lofthouse, Director of Borders Machinery Ring: “We have to manage the land as best we can to protect our assets - and our biggest asset is soil. Direct drilling is a much better option for us, for forage crops or direct grass reseeds going back in. Direct drilling holds the soil together, holds everything together – so that you don’t lose it down the river.” “I’m also looking at grass seed mixtures which can better cope with extreme conditions, either extreme wet or extreme heat, and drought too.” Angela Porchez of Angus Growers highlighted what’s already been achieved by their members: “Over the past ten years we have pretty much discontinued the use of peat. We are now primarily using coir. We also use biological controls - predatory insects - as a way of controlling pest species rather than using chemical alternatives.” Andy McGowan, MD of Scottish Pig Producers, added: “Back in 2002 our co-op focussed on health improvement; health being the biggest constraint on efficiency in our members’ herds. We recognised back then that we could drive improvements better by working nationally and regionally, rather than individual farms just doing their own thing. An outcome of this work is that farms are now more profitable and more efficient and the more efficient farms have lower carbon footprints.” “We now need to measure more, but right now my suspicion would be that we have reduced the carbon footprint per Kg of Scottish pork by around 15 or 16%.”
Andrew Moir, Chair of the Arable Climate Change Group, concurred and called for more collaboration to ensure views are heard by policy makers: “Co-operation is good for business! It is good for the climate. If you are co-operating with other farmers, other businesses, other groups, your efficiencies go up, business returns are better and greenhouse gases come down!” “I want farmers to be part of the climate solution. Farmers have had the opportunity (through the sector Climate Change Groups) to give government ideas that are practical - things that we can do and are doing and will do in the future to mitigate emissions.” Tim Wilson of Aspatria Farmers highlighted that co-ops are a source of trusted advice for farmers looking at climate change issues, whereas commercial advisors may have other priorities. OnFARM’s Anna Davies summarised: “These were really interesting episodes to be involved in and I urge farmers across all sectors to listen. The 20 minutes highlights episode focusing on the key messages, is a great place to start. “It’s incredible to think that many farmers have less than two crop rotations to identify and implement changes to cut emissions by 75% in order to meet 2030 government targets. “The overriding message is that by working together, farmers can, and are, tackling climate change, but in order to hit the targets, every farmer must realise that they can only be part of the solution if we collaborate, sharing ideas and solutions.” These are just a few extracts. Our thanks to everyone who took part in all of the podcasts. They are all still available to listen to, scroll down to ‘Podcasts’ at: https://saos.coop/whats-new/
Tarff ‘Kicks Off’ Kickstart Scheme in Dumfries & Galloway
co-op news
In late May, Tarff, together with Dumfries and Galloway Chamber of Commerce, D&G Developing the Young Workforce and Department for Work and Pensions, launched the Kickstart Scheme in Dumfries and Galloway. The Kickstart scheme is a national training programme created by the Government to help unemployed youngsters gain new skills and work experience. The scheme is a six month, paid work experience, and Tarff has placements at its Dumfries store and Head Office, Ringford. There are several roles to choose from, including warehousing, handyperson and administration. Over the course of the programme, students undertake their Certificate of Work Readiness qualification (SCQF 4) and are mentored by a member of Tarff staff. Tarff is looking forward to working with the students and providing them with a work placement, which will hopefully be a great stepping stone for gaining future employment. Pictured below: Tarff launches the ‘Kickstart Scheme’ in Dumfries and Galloway at Tarff Town and Country, alongside D&G Chamber of Commerce, D&G Developing Young Workforce and Department for Work and Pensions.
ANM - Business Growth and Promotion of Local Talent
co-op news
ANM Group posted a trading profit of £525,000 for the year to 31st December 2020. Share capital grew by £357,000 to £7.2m with an overall increase in balance sheet value to £23m. The positive results, including throughput increase of £4.2m, were delivered despite Brexit and the ongoing pandemic, and are being attributed to the Group’s deep-rooted co-operative values and their growing reputation for providing options for producers, including live online sales. An increased range of member benefits over the last 12 months has resulted in continued growth in membership. Increased take up of these wider member benefits has seen the overall business grow with a 5% increase in member funds invested in 2020. ANM Group Chairman, Peter Watson, said: “There is no doubt that ANM’s strength lies in its ability to innovate and evolve, meeting challenges head on. This - together with traditional co-operative values – has resulted in positive results for the Group and for our members. To generate a trading surplus of £525,000 in such uncertain times gives us confidence to look to the future, knowing we can continue to deliver for our members in even the most challenging of circumstances. “With a total regional economic contribution of over £100m, ANM plays a central role throughout our trading area and in the wider community, and through our various divisions services adds real value to our local communities.” Grant Rogerson, Chief Executive of ANM Group, added: “After one of the most extraordinary years since we were established in 1872, it is with a real sense of pride that our Group is able to report on a very positive outcome for the 2020 financial year. All of our teams adapted brilliantly to new ways of working over the year and have continued to refine and develop the way we operate.” ANM also announced a number of new appointments for its livestock auctioneering division in the last few months, representing further investment in career development at ANM. The Group is emphasising its determination to offer opportunities for “up and coming” local talent in customer-facing roles - roles which are seen as the key to build on close links with its growing customer base. Fraser Chapman, has been given additional responsibilities for selling and will canvass livestock in the Garioch and Donside areas. Katrina Macarthur, who’s been with ANM since 2018, now has responsibility for canvassing in the Buchan/ Banffshire area, and Lynne Macarthur, has taken on the role of Main Office and Livestock Finance Manager. John Angus, Head of Livestock said: “I’m delighted for Fraser, Katrina and Lynne, who are all well-known in the local area, and who will, we are certain, make a brilliant contribution in their new roles. Their appointment further strengthens the team whose focus remains to provide the best service to members and customers, and further cement our relationships at the farm gate and in the auction ring.” Grant Rogerson added:“This is a key part of our ongoing strategy to invest in the business, provide market-leading services to customers and members, and also opportunities for our staff to develop fulfilling long term careers. These promotions for Fraser, Katrina and Lynne are a recognition of their abilities and understanding of our industry and demonstrate the quality of talent we have available to us Left to right: Lynne, Fraser and Katrina across the team at Thainstone.”
Our ‘Magnificent Seven’ Co-operators Take to Twitter to Mark Co-ops Fortnight Seven of our member co-op directors took over the ‘Farmers of the UK’ Twitter account during the first week of this year’s Co-op Fortnight (21 June - 4 July). The account has a following of around 48,600 and usually sees one farmer take over for a week at a time. Our Magnificent Seven, who between them are members of fifteen co-ops, hosted for a day each and did a great job of talking about their own farming stories and how being a member of a co-op (or several) benefits their businesses. The week kicked off on the Black Isle with Donald Ross, before moving to Berwickshire with Jonny Williams, Wednesday was hosted by Robin Traquair, who farms just outside Edinburgh at Miller Hill. Thursday and Friday saw two hosts in the South West; Andrew Marchant and then Rory Christie. Our weekend hosts were Michael Tait of Scottish Shellfish on Shetland (one of his pictures is on the right ) and Fin Hay, our ‘top co-operator’ who is member of six co-ops! Fin closed off the week from Bridge of Earn and summed up his day nicely: “it’s always easy to talk about the positives of co-ops when we rely so heavily on them!”
Our grateful thanks go to them all for helping promote the benefits of co-operation - a key focus of SAOS’s work. Their member co-ops are: Scottish Agronomy, HBS, Highland Grain, United Oilseeds, ANM, Grainco, Milk Suppliers Association, Farmstock, BMR, Scotlean Pigs, Tarff Valley, Scottish Shellfish, Tayforth, Ringlink and Scottish Honeyberries. Check out the account on Twitter at: https://twitter.com/FarmersOfTheUK
First Milk Attend Downing Street Net Zero Event
co-op news
At the end of May, First Milk’s CEO, Shelagh Hancock, and Sustainability Director, Mark Brooking, attended an event at number 10 Downing Street, to mark the launch of the #TogetherForOurPlanet Business Climate Leaders campaign. The campaign encourages small businesses (250 employees or fewer) to take the first steps on their journey to net zero by making the SME Climate Commitment – to halve their greenhouse gas emissions before 2030, achieve net zero emissions before 2050 and disclose their progress on a yearly basis. Mark Brooking, Sustainability Director, said: “First Milk is proud to have committed to net zero by 2040. As a co-operative business we exist to deliver long-term security and prosperity for our dairy farmer owners. We truly believe that the only way this can be delivered is if we work together to address the sustainability challenges we face.”
Farmers Continue to Reap Rewards Through Case IH Scheme The Scottish Machinery Ring Association’s (SMRA) partnership with Case IH UK continues to benefit its members, with the total value of the 2020 Rebate Scheme being announced as £173,894. Andrew Whiley from Case IH, who has been managing the scheme throughout its duration, says: “Case IH has worked closely with the SMRA and over the last 10 years have returned more than £1.5 million to Scottish farmers. This year, the deal is worth £173,894 and we expect an even larger return next year as new dealerships in South West Scotland and Angus come on stream.” Since Case IH and SMRA entered a marketing agreement in 2009, by which Case IH would pay participating members a fixed rebate on their Case IH purchases in exchange for marketing and promotion of Case IH products, the dealer network has strengthened over the last 12 years. “At its inception, I thought that perhaps the scheme would last for four or five years at most before petering out of favour. How wrong was I? The scheme has gone from strength to strength, year on year, and although the overall numbers have levelled out, Case IH still pay out big rebates and annual bonus amounts indicating to us that there is still room to grow this partnership to benefit both Case IH, the SMRA, and its members.” Through the Case IH dealer network, SMRA members are entitled to a financial rebate on Case IH purchases and are also entitled to a share of the competitive trade-in bonus. Farmer, Bill Beaton, of WD Beaton, Rosebrae Farm, near Elgin says: “I’m a long serving member of the machinery ring, using Ringlink for both supply and demand services throughout the year – it’s reassuring to know they are there when I need them.” The latest addition to Mr Beaton’s fleet is a Case IH Puma 175 CVX purchased in July 2020 “On a recent four-hour job, 15 litres of fuel were saved compared to other brands in my fleet doing the same task. This amounts to a great deal of fuel saved over a year! Following the success of last years rebate scheme, Case IH and SMRA’s joint focus will continue to be providing solutions and benefits for members . They look forward to continuing this success into 2021 and beyond. Find out more from your local Machinery Ring, or visit: https://scottishmachineryrings.co.uk/case-ih-rebate/
Further Suppy Chain Expansion for Grampian Growers Grampian Growers has once again strengthened its position in the UK potato market having acquired one of the country’s biggest chip shop suppliers. The co-op purchased Cambridgeshire company Abbey Potatoes Ltd, which buys 25,000 tonnes of potatoes from a group of 30 growers, sells these to 50 merchants, who then supply chip shops from Caithness to Cornwall. Last year, Grampian Growers bought WM Fraser Ltd, which supplies more than 50 tonnes of potatoes per week to chip shops in the north east of Scotland. Grampian’s MD, Mark Clark, said: “WM Fraser was supplied by Abbey Potatoes for the last 20 years, and as a co-op we’re always looking at core businesses that fit in our industry,” he said. The growers who produce for Abbey Potatoes Ltd are based in Cambridgeshire, Norfolk, Lincolnshire and Yorkshire. Mark added that the new company’s 30 farmers were a potential new market for Grampian Growers’ core seed potato business: “They grow mainly Agria, Marquis, Sagitta and Maris Piper, and Agria is the only variety that’s not successfully grown in Scotland.” he said. “If the EU and UK can’t come to an arrangement over the export of seed potatoes to Europe and the ban is reciprocated there will be no imports of Agria and alternative varieties and suppliers will need to be found.”
Airport Cargo Hub Offers New Air Freight Opportunities
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A specialist management team at Edinburgh Airport has been developing proposals for an airfreight cargo hub to be built on a 28-acre site within the airport grounds. SAOS was initially commissioned by Seafood Scotland to help the team understand the service requirements and potential demand for airfreighting short shelf-life food products direct from Scotland, as high value seafood was one of the key products that could benefit. Continuing support will be provided through our Future Fit Supply Chains work. Global Air Park, which has recently been launched by Edinburgh Airport, offers a unique opportunity for businesses to gain seamless access to the airport’s global air network, which already facilitates trade with more than 150 countries around the world. The project will deliver more than 200,000 square feet of logistics space, tailored around the local air transport requirements of both importers and exporters. The site will support independent cold chain logistics solutions for a range of products from seafood to pharmaceuticals, supporting the growing widebody passenger and dedicated cargo services connecting Edinburgh with the world. Key strategic markets including North America, Asia, the Middle East and Africa will be better connected for logistics, which will, in turn, enhance the sustainability for Edinburgh Airport’s airline partners by making best use of the airport’s capacity. Buildings will be built to the latest BREEAM standards (the world’s leading sustainability assessment method for masterplanning projects, infrastructure and buildings www.breeam.com). Processes will be streamlined to reduce the time products spend in the supply chain, ensuring local global connectivity brings greater product value, more reliable supply chains and reduced road miles. Global Air Park also offers opportunities for cross-border e-commerce platforms by helping sellers achieve faster delivery times and therefore later cut-off order times for international buyers. The airport’s Cargo Business Development Manager, Conan Busby, is confident the development will be a welcome addition to Scotland’s logistics infrastructure: “Industrial property is scarce, and the ongoing pandemic has changed consumer behaviour towards more direct, online platforms. Supply chains can take more direct routes to the end customer, bringing significant benefit to the value of the trade that, in many cases, is being consolidated at other airports in the UK and even Europe. Global Air Park will aid delivery of the Scottish Governments’ aspirations for 25% of GDP to come from exports. The site will also drive the airport’s global recovery as our partner airlines bring more efficient, cargo friendly aircraft into Scotland. This enhanced capacity and capability will enhance Scottish PLCs’ access to local, global connectivity.” SAOS’s Rona Sutherland added: “Disruption to food and drink supply chains through Covid19 and Brexit, highlighted insufficient cold storage warehousing capacity, a limited range of affordable direct air freight options from Scotland and difficulty in efficiently meeting the demand for consolidation of smaller loads. Developing these facilities at Edinburgh Airport will help to address those shortcomings.” For any enquries re Global Air Park please email: globalairpark@edinburghairport.com
Local Food Logistics Project Serves up Opportunities for Producers SAOS has embarked on an ambitious partnership project to help boost sales of local food. Working with the Scottish Wholesale Association (SWA) and Scotland Food & Drink, the project is designed to help the wider wholesale sector engage fully with more local producers of all sizes, to help these businesses grow and access new markets. The wholesale sector is a vital route to market for many businesses and is worth £2.9billion per annum targeting foodservice, hospitality, leisure, public sector, local retail and convenience stores. The project is partly supported by the new Future Fit Supply Chains activity, and will be delivered on behalf of the Scotland Food & Drink Partnership, supported by Scottish Government through the Recovery Plan. The team is working with a steering group established by the SWA, comprising highprofile individuals from national and regional wholesale businesses across Scotland. The activity has already explored how wholesalers are currently sourcing and connecting with local food producers, manufacturers and suppliers, identifying key barriers, and establishing what is needed to increase local sourcing and distribution ability. The comprehensive programme will include workshops, meet the buyer events, case studies, specialist
advice, logistics planning, industry champions and signposting services. A survey, conducted by the SWA earlier this year, demonstrated that its members’ current local/Scottish food offering is typically around 30%. Increasing this by a further 10%, for example, would be a major lift to food and drink producers in Scotland. Alan Stevenson from SAOS concluded: “This is a really important initiative designed to deliver tangible benefits for Scottish suppliers and wholesalers alike, at a time when there is so much interest in local food and the environmental benefits of shorter supply chains as we exit Covid. “We know that many food and drink companies, small and large, new and long-established, don’t fully understand the wholesale sector and, crucially, how it could benefit their businesses. Our approach is very much about helping both producers and wholesalers learn how different parts of the chain operate. With 30,000 foodservice and hospitality outlets and 5,000 convenience stores in Scotland, many businesses are unaware of the huge potential in helping satisfy growing consumer demand. By working together, we can all help create new opportunities for both, at a time when the sector is desperate for a much-needed boost.”
“Knowledge is Power” - Introducing The Knowledge Bank Scotland’s food and drink industry has, for the first time, access to the industry’s latest trends, research, consumer insights, and industry and market innovations, following the Scotland Food & Drink Partnership’s launch of a new collaborative research and market insight service - The Knowledge Bank The Knowledge Bank is a key initiative from the Scotland Food & Drink Partnership’s Recovery Plan, which is supported by the Scottish Government to the tune of £10 million, and offers free access to a range of reports, events and bespoke insights to all Scottish food and drink companies. As the industry begins to rebuild after what has been a catastrophic 18 months for many, the new insights service will play a pivotal role in helping Scottish food and drink businesses, of all sizes and across all sectors, use market insight and intelligence to help differentiate their offerings in the global marketplace Businesses will have access to the latest research and insights resources available across the whole Scotland Food & Drink Partnership, as well as new research commissioned by The Knowledge Bank. SAOS’s Amanda Brown, who is Project Director of the Knowledge Bank, told us: “Creating a bespoke service that covers everything from using intelligence to inform strategy, identifying new routes to market, and developing resilient supply chains as the industry recovers, is a key action in
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the Scotland Food & Drink Partnership’s Recovery Plan, supported by Scottish Government. We will be accessing data, research and intelligence from domestic and international markets and, for the first time, analysing, disseminating and supporting businesses to turn this insight into action. This information is invaluable especially as businesses grapple with a post-pandemic, changing consumer landscape and the new opportunities opening up.” James Withers added on social media: “Knowledge is power. We know this. Change is coming, let’s get ahead of it!” As the team develops more supply chain/sector specific insight there will be more that we plan to share directly with relevant member co-ops. For more on how The Knowledge Bank and how it could help you and your co-ops, go to: https://foodanddrink.scot/the-knowledge-bank/
Steering Group Created to Develop Seed Potato Action Plan A Steering Group, led by SAOS, AHDB and NFUS, is to co-ordinate the development of a new Seed Potato Strategic Action Plan. The work will be carried out as part of the Recovery Plan, on behalf of the Scotland Food & Drink Partnership, and supported by Scottish Government. The seed potato sector is facing significant challenges. The pandemic changed everything for the foodservice and prepared meals markets, impacting negatively on the demand for ware potatoes. The fall-out from Brexit continues to disrupt the industry, with the absence of ‘third country equivalence’ halting all exports to Europe and many new trade agreements yet to be secured. Adding in the general decline in potato consumption, long-term land contamination from Potato Cyst Nematode, and the reduction in the availability of pest control treatments, mean that the imperative to work together across the sector has never been more important. In 2018, in response to Scotland Food & Drink Partnership’s Ambition 2030, a Fruit, Vegetable and Potato Growth Strategy was launched. This work is now to be reviewed, and a plan developed to address the distinct challenges and opportunities facing the seed potato sector. Alan Stevenson, SAOS’s Supply Chain Development Director, explains: “There is no doubt that these are turbulent times for the seed potato sector in particular. The imperative is for the industry to come together, with a focus on action that will secure and support a vibrant, resilient and sustainably profitable future for the sector.” The work will see the creation of three Working Groups, each led by a member of the Steering Group. These groups will consult across the sector to identify key market and commercial, policy and farming, and science and technology insights across the whole seed potato supply chain. This work will then be shared with a Consultation Board, made up of key industry representatives, who will sense check findings and capture additional insight prior to the publication of the final agreed Action Plan. The work will be undertaken over the next 6-8 months and the team is eager to get started. To get involved, either through inclusion in one of the working groups, or through participation in a detailed survey later in the process, get in touch with the relevant working group leader: • Markets and Commercial - Patrick Hughes, AHDB: Patrick.hughes@ahdb.org.uk • Science and Technical - Helen Glass, SAOS: Helen.glass@saos.coop • Farming and Policy - Jim Booth, SAOS: Jim.booth@saos.coop
Collaborative Webinars Promote Benefits of Co-operation SAOS has been working with SAC Consulting and the Farm Advisory Service (FAS) to produce three webinars to showcase the benefits of increased co-operation and collaboration. The webinars brought together a range of expert speakers and farmers involved in co-operation to share their experiences and how, as members, they take collective responsibility for generating value and sustainable services. The first webinar focussed on ‘The Benefits of Working Together’, and how informal co-operation and neighbouring have always been a feature of the farming community. Kerry Allison of SAC Consulting chaired and the speakers were SAOS’s Anna Robertson; Hector Munro, Foulis Farms, Ross-Shire, who talked about the benefits of machinery sharing and Caroline Black, Backboath Farm, Arbroath, who shared her experiences of building an agrochemical buying group (Black Agri Services). The second webinar looked at the ‘Different Types of Co-ops and Collaboration’. Again chaired by Kerry Allison, guest speakers were Jim Booth, SAOS’s Head of Co-op
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Development; Russell Brown, Chair of the Scottish Potato Co-op, discussing how co-ops can help address the imbalance of power in the supply chain; and Donald Ross of Rhynie Farm, Tain, who shared his views and experiences of the benefits of co-operation. The final webinar, on 27th July, will explore the future role of co-ops in this period of profound change, and will share learning from co-ops around the world. With examples of agricultural co-ops from the UK, Europe and further afield, this webinar will explore opportunities for new farmer-led developments here in Scotland. This is complimented by near-hand experiences from TJ Flanagan, CEO of ICOS (SAOS’s sister organisation in Ireland) where agri-co-op participation rates are three times higher than in Scotland. Also taking part are SAOS’s Robert Logan and George Noble, who will talk about SmartRural and how technology and data are enabling better farming decisions. Sign up for the last webinar (and you can still watch/listen to episodes one and two) at: https://www.fas.scot/events/
Re-introduction of Sugar Beet in Scotland Another Step Closer
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With the first successful crop in half a century harvested earlier this year, the consortium behind a sugar beet reintroduction initiative, comprising SAOS, the Industrial Biotechnology Innovation Centre (IBioIC) and SAC Consulting, has secured new funding from Scottish Enterprise to analyse its potential environmental, societal, and economic impacts. Sugar beet is seen as a key building block for the development of sustainable supply chains and a ‘bioeconomy’, which uses natural materials instead of petrochemical compounds in manufacturing. A local source of sugar beet could pave the way for the development of an ethanol-producing biorefinery in Grangemouth, and later could potentially support a fully functioning bio-based chemicals industry. Sugar beet can be used in the production of ethanol as a natural and sustainable substitute for petroleum-based chemicals used in a range of household goods, as well as antibiotics and therapeutic proteins. Demand for ethanol in Scotland is expected to double in the coming years to more than 100 million litres, yet all of the country’s supply is currently imported from Europe. Ian Archer, technical director at IBioIC, said: “Growing sugar beet again is a huge opportunity to re-invent the economy, build sustainability into manufacturing supply chains, and secure jobs for the future. Many manufacturers have committed to net-zero carbon targets over the next two decades and a big part of that will be replacing the use of petrochemicals with natural materials.
“You cannot have a chemicals industry without a feedstock. In northern Europe, that crop is sugar beet and growing it here for ethanol production will not only diversify farmers’ income stream, but could allow them to be part of a green alternative to fossil fuels. “Bio-based manufacturing shares many skills with using traditional chemicals and, given the direction of travel in the industry, this approach could secure and create jobs in Scotland. We need to change the way we produce goods if we are going to compete in global supply chains and secure a future for the domestic market. “We have made huge progress, taking the concept of a bio-economy based on sugar beet production from a nice idea to the first yield in 50 years, and the outline of how a farming co-op would be structured. This next step should confirm what we know, with data to support the range of benefits associated with growing sugar beet.” Andrew Henderson of Scottish Enterprise’s advanced manufacturing team said: “This is a hugely exciting project. Our funding will help unlock a vital next step, to support sustainable fuel and chemicals production through biotechnology, and ultimately create new jobs and investment to strengthen communities across Scotland.” Jim Booth, SAOS’s Head of Co-op Development, concluded: “The re-introduction of sugar beet represents an exciting opportunity for farmers. If the proposal is to get off the ground, the only way to get farmer growers involved is through co-operation. Creating a producer co-op means the production, crop management, harvesting, marketing and delivery is optimised, safeguarding grower returns, and importantly, ensuring a collaborative supply chain approach.”
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Research Looks to Ensure The Best of Marbled Beef Every Time
1. Results suggest that ultrasound scanning for IMF on-farm, and associated algorithms, are not sufficiently accurate to rank commercial UK slaughter cattle, of different breeds/ crosses, ages and liveweights, for the level of IMF present, and would not be recommended for this purpose. Despite ‘consumer eating experience’, being key to selling prime beef cuts, there is currently no UK industry consensus on a metric for this. However a visual measure of intramuscular fat (IMF) is considered to influence eating quality and has been adopted within both American and Australian beef supply chains successfully. MacDuff1890 believes this method holds promise for serving their discerning customers and, together with its dedicated producer group, and in partnership with SAOS and SRUC Research, they embarked on research to explore and enhance this approach further. The resulting pilot looked to appraise the strength in relationship and suitability of alternative predictors of IMF. A taste panel then assessed any preference between a high and low marbled steak. Lastly, it was noted how the project learnings could inform best practice - with the intention of generating an evidence base and to understand better the gaps in industry knowledge, as well as next steps within the realities of a commercial setting, such as a busy, working, supply chain, where any changes need to have clear benefit and can be implemented easily. There were 200 cattle involved in the trial, sourced from two farms within the producer group. Cattle were ultrasound scanned on-farm; three different ultrasound images per animal, and IMF% determined using a predefined algorithm. Subcutaneous fat depth (UFD) was also measured. Trained assessors graded the visual level of steak marbling, within the abattoir, using the USDA marbling score cards (scoring on a scale of 1 – 6). A slice was removed from the left loin muscle of each carcase and frozen, then later thawed and lab tested for IMF%, using a FOSSTM FoodScan Meat Analyser – this was considered the ‘gold standard’ IMF measurement, to benchmark on-farm and abattoir predictor measures against. Covid-19 restrictions meant that the taste-test became a smaller sample size with fewer measures of consumer preference. A home-based untrained taste panel provided the final results, before statistical analysis was performed. Timescales, scope and methodology had to adapt as the project developed. Nonetheless, a responsive team and an accommodating producer group ensured credible results. It is always challenging to make definitive statements within a pilot study but encouraging signs and useful learnings do support recommendations:
2. Visual marbling score of carcases had a higher correlation and provides good predictions of total IMF percentage in the meat (as assessed by laboratory methods). This presents a practical, low-cost implementation, and solution for indicating IMF% in the abattoir. 3. Disappointingly, robust statistical analysis revealed very limited evidence of this home-based consumer taste panel discriminating between steaks with high or low marbling. However, the majority of participants did successfully identify between them – with most preferring the high-marbled steak. This ties into a body of research indicating a link between visual assessment for high marbling and eating experience. 4. Marbling score cannot, however, be a singular selection criterion in predicting eating quality, due to significant other influencing factors such as breed, age, nutrition, and animal/carcase handling, as well as interactions between these factors. 5. Nonetheless, visual beef marbling scoring can form part of a carcase grading system by a) preferentially selecting carcases that better suit the MacDuff1890 market and b) where fed back to the producer group, could inform future management or selection decisions. 6. This pilot lends confidence to study a more advanced beef specification that better reflects broader quality parameters. Noting that, a larger dataset and additional analysis would be required to consider how best to integrate into specification and supply chain decision making, without impacting other important selection criteria. For example, it is known (and reinforced within this study) that beef marbling increases with age, however, extending finishing times would have a detrimental impact on the group’s environmental credentials; it is possible to select cattle that meet breed, age, marbling, weight and grade criteria. There are many demands on farmers to produce beef that can be proudly marketed in this premium, short supply chain. Although this pilot project could not be conclusive, reinforced by larger studies and as adopted within other countries, it indicated that visual marbling score can inform greater understanding of MacDuff1890’s customers’ requirements – being one indicator of eating experience. The closing recommendation is for a database to be established, with information on marbling being fed back to producers, to inform decision making across the chain. The full report is at: www.fas.scot/downloads/the-best-of-marbled-beef-report/
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