appendices - gov.uk
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Appendices
Appendix 1 - Wholesale Market Profiling
Appendix 2 - HMT Green Book Assessment of potential impacts of National BDMP Appendix 3 - List of interviewees for Wholesale Market Project Appendix 4 – Grower and trader interview and responses
Appendix 5 – Fresh Carts Case Study
Appendix 6 – Street Market Case Studies
Appendix 7 – Catering Distributors Case Study
Appendix 8 – Small Retail Shops Case Study
Appendix 9 – Farm Shops Case Study
Appendix 10 – Public Procurement Case Study
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Appendix 1: Wholesale Market Profiling
SUMMARY FINDINGS:
The three London markets dominate the wholesale market for fresh produce in value terms. Together they account for approximately £1.7 billion in annual turnover. The provincial markets have turnovers generally around £100 million per annum
There are numerous synergies and links between many markets and there appears to be a strong geographic clustering of markets. There is a willingness of markets to ‘share’ a BDM
The provincial markets tend to have a lower supply (proportionately) of local produce than the London markets (10% c.f. 30%) which highlights their potential to source more from local growers
Each market has a wide customer catchment area – these overlap to a certain extent
Tenants’ associations are relatively strong with high levels of membership in most markets
There is a very positive willingness of the provincial markets to engage in a national BDMP
A number of markets are struggling and have serious issues to address. Their view is that there is an ‘ambassador’ role for the BDMs to represent them
There may be potential to engage Scotland and Wales in the BDMP through wholesale markets at Glasgow and Cardiff and possibly Northern Ireland
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1. BILLINGSGATE MARKET
PRODUCT TYPES AND SPECIALITIES Many processed or 'added-value' fish and fish products are on display such as cured and smoked fish and roe; prepared products ready for the table; fish soups; cooked shellfish and pâtés. Farmed fish are also very much in evidence - predominantly salmon from the United Kingdom and Norway.
NUMBER OF TRADERS/UNITS Billingsgate Market has 50 businesses, 98 stands, 30 shops and 79 offices.The Market complex also houses several firms who trade in goods and services ancillary to the fish trade; cooking oils, poultry, potatoes, catering supplies, trade utensils and a laundry
OWNERSHIP The market is owned by City of London Corporation
OCCUPANCY LEVEL Approximately 90%
SUPPLIER CATCHMENT AREA A significant amount comes from Scotland but virtually all fishing ports in the UK, from Aberdeen to Penzance, supply the market. Approximately 40% comes from abroad. Live imports include lobsters from Canada and eels from as far away as New Zealand.
KEY ISSUES Most of the fish is transported by road directly from the coast and arrives at the market in the early hours of the morning. Imported frozen fish is usually shipped in large refrigerated containers. Imported chilled fish is often airfreighted-sometimes from countries thousands of miles away-or arrives by sea via roll-on, roll off ferries
FUTURE PLANS Discussions at an early stage re. possible relocation to north of London (Olympic site) as part of a new composite market
TURNOVER The annual turnover of the Market is estimated to be in the region of £250m
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC The Market complex covers an area of 13 acres and is entirely self-contained. The ground floor of the building comprises a large trading hall with 98 stands and 30 shops. The first floor of the building consists of offices
EMPLOYMENT ?
CUSTOMER MARKETS AND CATCHMENT AREA Billingsgate is the UK’s largest inland fish market. An average of 25,000 tonnes of fish and fish products are sold through its merchants each year
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TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP The London Fish Merchant's Association is a body which represents the merchants trading interests, while Billingsgate Traders Ltd represents the interests of the tenants in their dealings with the City of London
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET 60%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS The only other wholesale market with any significant fish trade is Birmingham
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP Wholesale supply chain research is still continuing into the fish sector to see how best it fits with the national BDMP. 50% funds have been secured for a one year period for a BDM post from the European Fisheries Fund (via the Marine Management Organisation). This is subject to GLA matched funding which is currently being investigated.
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2. BIRMINGHAM MARKET
PRODUCT TYPES AND SPECIALITIES Composite market with fresh produce, meat, fish and poultry (largest integrated wholesale market in England)
NUMBER OF TRADERS/UNITS 62 fresh produce traders 6 meat traders 6 poultry traders 20 fish traders 235 units
OWNERSHIP Birmingham City Council
OCCUPANCY LEVEL 65% (spare units let for storage)
SUPPLIER CATCHMENT AREA All of the UK
KEY ISSUES Birmingham City Council says it costs £2.8 million to run the market but receives £1 million short of this figure in income when the market is fully let. The site, being in the centre of Birmingham, is worth an estimated £70-80 million for redevelopment Promotion of the market is a key issue for the tenants
FUTURE PLANS There are BCC plans to sell off the site early 2013. Plans for the development of a new market in a different location are unclear at present.
TURNOVER Estimate of £100 – 150 million
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC There has been little investment in the market in the past 5 years and it is in need of modernisation and repair, in particular the roof. It is 37 years old
EMPLOYMENT More than 1,000
CUSTOMER MARKETS AND CATCHMENT AREA Mostly Midlands and north. Estimated 13,000 customer visits each week
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP Reasonably strong tenants’ association
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Estimate about 10%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS It is in the same customer and supplier catchment as markets at Derby, Wolverhampton, Nottingham and Leicester
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POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP The tenants’ association emphasised the willingness to work with other markets and to ‘share’ a BDM with them by engaging in the BDMP. They suggested that in the longer term tenants would pay for BDM services on a commission basis (after it has proved itself). Birmingham City Council offered to host a BDM in their offices adjacent to the market. They would like us to come back for further discussions.
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3. BRADFORD MARKET
PRODUCT TYPES AND SPECIALITIES Almost all fresh produce
NUMBER OF TRADERS/UNITS 50 traders 65 units (with offices above)
OWNERSHIP Bradford City Council
OCCUPANCY LEVEL 100%
SUPPLIER CATCHMENT AREA Most of the country. Lot of imported produce
KEY ISSUES Good relationship with council Looking for new sources of supply (one company has specifically employed someone to do this for them) About 30% of produce is traded on a commission basis and 70% purchased direct
FUTURE PLANS Priority is to maintain investment in the market.
TURNOVER £100 million
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC The market was built in 1970 and has had constant reinvestment which has resulted in an excellent facility. Part of the tenants’ service charge is reinvested in building maintenance
EMPLOYMENT Around 1000
CUSTOMER MARKETS AND CATCHMENT AREA Most of England and as far as Northern Ireland and central Scotland
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP Strong tenants’ association. 100% membership
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Difficult to estimate but there is a growing demand for UK produce – possibly around 10%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS Leeds, Hull, Sheffield markets are in the same catchment area
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP The tenants’ association emphasised the willingness to engage in the BDMP and they offered to host a BDM at the market. Raising the profile of the market is a key priority for them. They would like us and a BDM to attend a future wider meeting of the tenants.
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4. BRISTOL MARKET
PRODUCT TYPES AND SPECIALITIES Primarily fresh produce, 1 flower trader
NUMBER OF TRADERS/UNITS 108 units 8 major traders
OWNERSHIP The market is privately owned by the traders (as a cooperative). All tenants are on 99 year leases (commenced in 1968)
OCCUPANCY LEVEL 100%
SUPPLIER CATCHMENT AREA Primarily the South West for local produce but a lot (90%) imported
KEY ISSUES Possible relocation of market (as it basically is based in an industrial estate that is developing as a waste transfer site). Market previously largely dependent on supplying supermarkets – this does not happen any more Highlighted that there is no demand for Red Tractor
FUTURE PLANS Possible relocation – needs to be a non-residential location within easy reach of their “blue collar” workforce
TURNOVER £80 million (was as high as £120 million)
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC The market looked in good condition and has clearly been reasonably well maintained since it was built in 1968
EMPLOYMENT 300 (was 500)
CUSTOMER MARKETS AND CATCHMENT AREA South West, South Coast and as far north as central Scotland
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP Strong association as site is owned by tenants. Service charge covers admin, waste collection, security and maintenance.
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET 10%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS Links to Southampton market (which is now just a distribution centre). Highlighted that their suppliers also deal with markets in the Midlands, North and Scotland
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP Not certain they need a BDM as they know their local growers very well. For them the BDM focus could be working as a broker with secondary wholesalers. Also they mentioned retailer training as a role. Did express a willingness to engage in the BDMP and would like a BDM to attend a future meeting. Jason Bourne of Bristol Futures (which is the council’s economic team) is interested in developing a new market (possibly composite) in a new location.
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5. GLASGOW MARKET
PRODUCT TYPES AND SPECIALITIES Most types of fruit and vegetables. Small fish market
NUMBER OF TRADERS/UNITS There are 81 sales units and 12 wholesale trade businesses (there were 52 at one stage).There are 6 fish traders
OWNERSHIP City Markets (Glasgow) LLP are responsible for the overall management of the market, for property maintenance, cleaning refuse removal and security.
OCCUPANCY LEVEL There is a stance occupancy rate of about 60%.
SUPPLIER CATCHMENT AREA Fresh produce from almost every country in the world is sold in the market. From Scotland they source mostly potatoes, berries, swedes, carrots and peas
KEY ISSUES The market has just gone through a 5 year refurbishment programme – new roads and offices primarily. Rents have risen as a result which has forced some traders to relocate to individual sites, thereby eroding the ‘hub’ function of the market to a certain extent. Growers in the east generally only supply supermarkets – there is scope for them to supply the market more
FUTURE PLANS The fish market is to undergo a £6million redevelopment
TURNOVER Estimate £100 million
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC In excess of 2000 vehicles visit the markets daily, these are not just from the UK but also from Continental Europe.
EMPLOYMENT Over 250 people are employed directly within Fruit and Vegetable Market (it was 400 until recently).
CUSTOMER MARKETS AND CATCHMENT AREA
The customer base covers the whole of Scotland and extends as far as the North of England and Northern Ireland. Many customers are retailers and secondary wholesalers (from Edinburgh, Dundee, Aberdeen, Inverness and Oban)
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP About 50% are members
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Only about 10%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS None specifically although some traders such as Total Produce have stands in other markets.
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POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP The involvement of Glasgow wholesale market may require the engagement of the Scottish Assembly as it is out of the jurisdiction of Defra. The feeling was that there would be a role for a BDM to provide support in finding local (Scottish) growers and also on issues such as packaging and marketing advice. There is also a role to help promote the market and improve its image
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6. LIVERPOOL MARKET
PRODUCT TYPES AND SPECIALITIES Mostly fresh produce, less fruit.
NUMBER OF TRADERS/UNITS 100 units – 60% used by traders, the rest for storage 15 market traders in total (3 of which are flower traders)
OWNERSHIP Owned by Liverpool City Council and managed on their behalf by Geraud Markets Ltd who is a joint venture partner
OCCUPANCY LEVEL 100% (including storage)
SUPPLIER CATCHMENT AREA Most of the UK but a lot of imported produce
KEY ISSUES A consultation exercise is underway with traders regarding possible relocation of the market Total Produce is by far the largest tenant, taking about 20 units All tenants’ leases have expired and they are operating on 3 monthly rolling leases
FUTURE PLANS There are potential plans to relocate the market and use the current site for retail/industrial use. An amalgamation with Manchester market has been raised (30 miles apart)
TURNOVER Estimated to be £90 million (this appears to be a high estimate)
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC The market looks in need of significant investment and modernisation. It was built in 1969
EMPLOYMENT 200
CUSTOMER MARKETS AND CATCHMENT AREA A survey of the market in 2009 indicated it has 3,450 customers. The customer base is primarily shops, restaurants and secondary wholesalers. They come from as far as Carlisle and the Lake District and also NW Wales
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP About 2/3 of the traders are members of the tenants association
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Estimate 10 – 20%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS Preston (distribution market primarily) and Manchester in particular (where there are plans for redevelopment)
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP The tenants’ association was impressed with the work of the BDMs and the services they offer and expressed a willingness to engage in the BDMP. They would like a BDM to attend a future meeting – early November – and offered to host a BDM at the market – they have a spare office
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7. NEW COVENT GARDEN MARKET
PRODUCT TYPES AND SPECIALITIES Traders at NCGM sell over 160 different types of fruit and 180 vegetables during the year. In line with the rest of the UK a large proportion of the produce is imported
NUMBER OF TRADERS/UNITS 26 wholesalers (but several companies are very large and have different specialised departments – e.g. one has 14 units, so this number is slightly misleading), 75/80 catering distributers/secondary wholesalers including Medina Food Service (dairy). 5 fruit and vegetable preparation companies are also located at the market. It is also Britain’s largest wholesale Flower Market –over 50 flower companies on site.
OWNERSHIP Covent Garden markets Authority
OCCUPANCY LEVEL 86%. However, most of the vacant space is under negotiation and likely to be let in the next few months. A key issue we have is the redevelopment of the market, so capital investment and the rolling break clause in the lease have held up some of the signings.
SUPPLIER CATCHMENT AREA Based on information from the sale of entry permits, NCGM has suppliers from all over the country: South West, North West and North East as well as the Midlands. However, as might be expected the bulk come from the South East and East Anglia. Suppliers from overseas mirror the main exporting countries.
KEY ISSUES The redevelopment plans are partly the result of the market needing upgrading. Current issues include:
Ageing buildings
The internal road network around the market buildings works inefficiently
Drainage issues
Inflexible trading units
Out-of-date servicing
FUTURE PLANS A major 5 year redevelopment plan for the market is underway. This proposes a bringing together all market functions onto the main site and redeveloping the Northern Site – where the Flower Market is currently located – and other land not needed
TURNOVER £560 million
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The current Market is too spread out and does not make best use of the space
for the new Market with new homes, shops, leisure and commercial uses alongside new public spaces.
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC It is predominantly a white, non-ethnic market (both in terms of traders and customer base).
EMPLOYMENT Over 2,500
CUSTOMER MARKETS AND CATCHMENT AREA 80% of wholesalers’ sales go to on-site catering distributers; NCGM is predominately catering for the Food Service Sector. Footfall at the market is therefore fairly low by comparison. It serves many of London’s best restaurants and hotels, cafes and bars, schools, hospitals and work places as well as independent retailers and street markets.
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP Covent Garden Tenants Association represent approximately 65/70% of the companies on the market
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Estimated to be between 30 – 40% dependent on the time of year.
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS There are linkages with the other London markets and certain traders have stands at all three London markets
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP CGMA is committed to strengthening links between UK growers and NCGM and believe that their BDM is an essential part in that process. But there are some issues which they feel need to be addressed in moving forward:
That pull is as important as push – especially in creating value for all the links in the chain
That work on the demand side ensures a more sustainable outcome
That growers match supply to demand and don’t just use markets for excess (this can depress prices to the detriment of all)
That bringing new growers doesn’t displace existing growers (cannibalisation)
That there be more focus on outcomes ie permanent change rather than just outputs (some of which may not be sustainable)
That the potential for NCGM to communicate up and down the chain be leveraged – particularly through grower funded campaigns currently only targeted at retail and not food service
That NCGM is willing to make a financial commitment but there needs to be a level playing field in terms of BDM provision
That there needs to be flexibility in framing a new programme to reflect the different focus of each market
That there is potential to mirror the local food work on the ornamentals side
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8. NEW SPITALFIELDS MARKET
PRODUCT TYPES AND SPECIALITIES Virtually all types of fruit and vegetables from around the world
NUMBER OF TRADERS/UNITS 107 wholesale traders and 9 catering supply companies (3 large, 6 small).
OWNERSHIP City of London Corporation
OCCUPANCY LEVEL 100% (waiting list)
SUPPLIER CATCHMENT AREA Worldwide but in particular East England – Nottingham, East Anglia and down to Kent
KEY ISSUES Lack of space to expand the market The positive and negative (transport logistics in particular) aspects of the Olympics being located adjacent.
FUTURE PLANS Discussion at an early stage re. potential composite market in the longer term (merging with Billingsgate and Smithfields)
TURNOVER Approximately £700 million.
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC The market has 3,000 vehicle movements per day. It is a well maintained, 20 year old market
EMPLOYMENT Over 2000
CUSTOMER MARKETS AND CATCHMENT AREA The market sells a huge variety of produce to a multi-cultural customer base, mostly local restaurants and retail outlets Secondary wholesalers are also significant customers. They come from as far as Nottingham Street markets also buy from the market
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP The tenants’ association (which hosted the BDM post until recently) has 100% membership. The BDM is now based in the offices of the largest business, Sunnyfields.
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Seasonally 35%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS Links to other London markets. Also links to major companies such as Reynolds
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP A lot of the BDM’s work is with 8-10 major traders at the market. Tenants at NSM are very supportive of the BDM post and would like to be part of the national BDMP. There is potential to link with other markets
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9. WESTERN INTERNATIONAL MARKET
PRODUCT TYPES AND SPECIALITIES Primarily fresh produce, much of which is imported. Small flower market and 4 traders selling non horticultural produce.
NUMBER OF TRADERS/UNITS 70 primary wholesalers, 5 secondary wholesalers, 4 traders with prepared veg facilities (on site or nearby). There are a large number of importers with offices at the market (in particular from Egypt).
OWNERSHIP The market is owned and operated by London Borough of Hounslow
OCCUPANCY LEVEL 100%
SUPPLIER CATCHMENT AREA Only about one third of produce supplied to the market at present is British. Large number of Egyptian imports. There is some small scale export activity from the market
KEY ISSUES Despite the economic conditions all units are fully let. Traders complain of difficult trading conditions
FUTURE PLANS Discussions at an early stage re possible longer term composite market on the site.
TURNOVER £400 million
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC About one third of wholesale businesses are Indian owned and operated and the market has become a centre for Asians (and also Arab) produce in the UK. The market is located in a new purpose built building (constructed 2008)
EMPLOYMENT 1,200
CUSTOMER MARKETS AND CATCHMENT AREA The market serves a predominantly retail customer base from West London and the home counties. There is also a significant amount of trade with secondary wholesalers, in particular from the west. Street market customers account for about 20% of business
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP The tenants’ association comprises
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS There are linkages with the other two London fresh produce markets, with some traders having stands in more than one market. There are also links with Birmingham,
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almost 100% of businesses in the market. It does little in the way of market promotion and is mainly the link between the traders and council on operational matters
33% Bradford and Manchester wholesale markets
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP The BDM services at WIM have been very well received by the tenants and they would very much like this programme to continue at the market. LBH currently provide free office accommodation and WIMTA provides some secretarial support. It is envisaged this support will continue.
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10. WOLVERHAMPTON MARKET
PRODUCT TYPES AND SPECIALITIES Mostly fruit and veg
NUMBER OF TRADERS/UNITS 28 units 7 warehouses Growers and fish stands 6 traders
OWNERSHIP Wolverhampton City Council
OCCUPANCY LEVEL About 75%
SUPPLIER CATCHMENT AREA Mostly imports – products sold cannot be grown locally
KEY ISSUES Lease renewals (short term) are due in September.
FUTURE PLANS Possible market relocation
TURNOVER Did not know
MARKET CHARACTERISTICS/LAYOUT/CONDITION/ETC In need of modernisation and investment
EMPLOYMENT Not sure but < 100
CUSTOMER MARKETS AND CATCHMENT AREA Localised, serving primarily ethnic groups
TENANTS’ ASSOCIATION DETAILS AND MEMBERSHIP Small provincial market with a relatively weak traders group
ESTIMATE OF LOCAL PRODUCE SUPPLIED INTO THE MARKET Fairly small < 10%
POTENTIAL SYNERGIES AND CLUSTERING WITH OTHER MARKETS Worried that tenants will move to Birmingham market (they have both links and conflict with them)
POTENTIAL TO WORK WITH OTHER MARKETS AND AS PART OF THE NATIONAL BDMP Willingness to find out more about the BDMP. Would like a BDM to attend a meeting between council and traders group, possibly October
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Appendix 2 - HMT Green Book Assessment of potential impacts of National BDMP
Table 1: Calculation of Gross Additional Annual Turnover Generated by BDM Programme
Factor £ Assumptions and calculation explanations
Additional average annual gross turnover generated per business £107,000
£107,000 average increase based on primary research survey results of London pilot project (January 2010 – June 2011). This survey represents a comprehensive assessment of 80% of the beneficiaries and as a result sampling error or bias does not apply.
Business helped 960
Assuming each BDM supports 5 businesses per month (based on outputs of pilot programme) then 4 FTE BDMs will support 960 businesses over a 4 year period.
Total additional gross turnover from businesses
£102,720,000
Average gross x Businesses helped
Table 2: Calculation of Net Additional Annual Turnover Generated by BDM Programme
£ Assumptions and calculation explanations
Total additional gross turnover from businesses £102,720,000 A:-Total gross calculated in table 1
Dead Weight 10% £10,272,000
B:- Deadweight is estimated to be low based on the primary survey findings that producers and traders operate in low margin environments and are under pressure on a daily basis every day to do enough trade to keep themselves in business and as a result do not spend any significant amount of time working to improve their supply chains. The figure of 10% also takes account of selection bias.
Displacement average 40% £41,088,000
C:- Displacement is calculated from the results of the pilot project beneficiary primary survey which found that displacement in markets is relatively high at 65%, partly on the basis that of all the additional revenue generated a significant proportion would have occurred anyway, mostly from the continued supplies of foreign produce. Conversely, displacement with food producers is relatively low at 15% based on the fact that producers are primarily replacing produce supplied from foreign imports. As beneficiaries are split almost
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evenly amongst producers and market businesses (results of the primary beneficiary research undertaken in the pilot project), the average displacement figure for all businesses can be assessed at 40%.
Substitution 0% £0
D:- Substitution is assessed to be insignificant as the overall proportion of time given by the BDM to any single business is of a scale judged unlikely that individual businesses would have employed someone themselves for this work
Leakage 0% £0 E:- All beneficiaries are based within the target areas within England
Total net additional turnover from businesses (A-B-C-D-E) £51,360,000
Table 3: Calculation of Net Jobs Generated by BDM Programme
Assumptions and calculation explanations
Total net additional turnover from businesses £51,360,000 F:- Total net additional turnover from businesses calculated in table 2
Average gross sales required to support 1 FTE. £196,614
G:- 2008 Annual Business Survey (2009 figures not available yet) indicates that every £103,000 of food production sales supports 1 FTE in and £290,228 of wholesale fresh produce sales supports 1 FTE. Again assuming beneficiaries are split almost evenly amongst producers and market businesses this provides average sales of £196,614 to support 1 FTE.
Net additional jobs created (F/G) 261
H:- Employment creation persistence effects are forecast to be long-term due to:
Acceleration of impacts as initial Programme inertia is overcome
The impacts of the Programme on addressing market failure of imperfect information and the lack of trust and confidence within national fresh produce supply chains will lead to long-term improved efficiency and competitiveness of this sector
Much of the work with beneficiaries will only pay dividends over the longer term as trading relationships are enhanced and strengthened
Additional beneficiary businesses in the food supply chain including retailers, restaurants and market stalls will be impacted upon through supply chain multiplier effects
Additional impacts of the BDMs support will include benefits such as sustainability accreditation and transport cost reductions which have beneficial long-term impacts on businesses performance
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Appendix 3 -List of interviewees for Wholesale Market Project
Traders Suppliers
Name Supply chain Market Name Supply chain Market
Desiree Ltd Fresh Produce NCGM T R Marketing Ltd Fresh Produce All London & Regional
MG & son Fresh Produce NCGM R Bratley Ltd Fresh Produce All London & Regional
Montgomery Ltd Fresh Produce Spitalfields MG & son Fresh Produce NCGM
Sacoma Ltd Fresh Produce Spitalfields Montgomery Ltd Fresh Produce Spitalfield
Sunnyfield Veg Ltd Fresh Produce Spitalfields Ted’s Veg Boston Fresh Produce NCGM, Spitalfield, Borough
Fruity Fresh Ltd Fresh Produce Western Int. W Wingrove & sons Fresh Produce None
J T S Hill Ltd Fresh Produce Western Int. Bedlam Farms Fresh Produce Western Int, Spitalfields, NCGM & regional
Maroc Veg Ltd Fresh Produce Western Int. Hammond Produce Fresh Produce NCGM, Spitalfields & Regional
Sidesalads Ltd Fresh Produce NCGM Lowrie Foods Meat None - direct
Smith & Sons Fresh Produce Western Int G Wood & Son Meat None – direct
Thorogood Ltd A Fresh Produce NCGM
Thorogood Ltd P Fresh Produce Spitalfields
Finclass Meats Meat Smithfield
G Lawrence Wholesale Meat Smithfield
Davies & Davies Meat Smithfield
Aubrey Allen Ltd Meat None - direct
Ted Collins Meat Ltd Meat Birmingham
Evidence was also supplied through general discussion with a further 30 suppliers and traders in other parts of the study, plus evidence from monitoring of the existing BDM programme.
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Appendix 4
Grower interview
Rationale for and format of the survey: To gather views from growers / producers on their perception of wholesale markets and the enablers and barriers to these routes to market. Those that have used the BDM services will be asked their views to determine the commercial applications for the future service. Those that have not used or had access to the BDM service will be asked whether there would be potential benefits of introducing such a support mechanism. The survey will take the form of a general discussion but using the following framework:
1. What products do you produce? What are your current routes to market? - Direct to customer - Through packer / processor / consolidator - Through wholesale markets - other Please give approximate proportions
2. Do you use a wholesaler / wholesale market? If no go to Q6 If so which one? Under what circumstances? - all produce - surplus produce to main market routes
3. What are the advantages / opportunities from marketing through wholesaler / wholesale markets? What works well? 4. What are the disadvantages of marketing through wholesalers / wholesale markets? What does not work well?
Go to Q8 If no – Have you used wholesalers / wholesale markets in the past? Have you considered wholesalers / wholesale markets? Why have you ceased /chosen not to use this route to market?
5. What did not work? What are the barriers? Go to Q9
6. Have you used the services of the Business Development Manager? What is your view on the BDMP services provided at present? - What is helpful?
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- Where there are gaps? - How do the individual BDMP’s perform in their role?
7. What support would you like in the future? - Views on the national BDMP concept should also be sought
Business support categories to prompt for discussion:
Advice on the optimum use of wholesale marketing
Advice on grading, packaging, labels, transport (e.g. supporting the development of load consolidation schemes), etc.
Fresh produce exporting advice and support
Assist growers who are interested in joining / establishing co-ops and similar ventures
Growers alerted to individual wholesalers looking for specific products and to general trends
Personal introductions to suitable wholesalers. Help with initial negotiations between growers and wholesalers.
Work with supermarkets to help them find and increase their use of local suppliers
Organise escorted tours of the markets for groups of growers, horticultural students, etc.
Help to explain the environmental credentials of English growers to wholesalers and their customers.
Provision of market intelligence
Current Prices
Prospects for British crops and those of competitors in other countries
Market trends
Supply chain changes
Marketing studies
Structural changes 10. Would you be prepared to pay for such a service and on what basis? If not, why not?
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Trader Interview
Rationale for and format of the survey: To get detailed views on the market place in which traders operate and the value of the BDM role to companies that have used its services with a view to determining the commercial applications for the future service. Survey 3-4 traders at each market (Western International, New Covent Garden and New Spitalfields). Given the nature of traders and the hours they operate it is appreciated that the discussion is unlikely to last more than about 20 minutes. The survey will take the form of a general discussion but using the following framework:
1. What products are traded at the present time?
2. What is the source of that supply? - Direct from farm - From intermediary e.g. Co-operative, marketing agent, primary processor - Importer / imported produce Give indicative proportions where possible.
3. Who are your customers? - caterers - other wholesalers - small shops - supermarkets - other Give proportions where possible
4. How is the fresh produce supply chain changing? - Is your business volume growing / declining - Are relationships with suppliers & customers altering – if so how? e.g. moving from transactional to quality based long term relationships
5. Who do you see as your main competitors?
6. What are your main supply chain issues and challenges?
7. What are your views on the BDMP services provided at present? - What is helpful?
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- Where there are gaps? - How could the BDMPs improve their performance in the role
8. What support would they like in the future (prompt for various business support services and market intelligence suggested below). Their views on the national BDMP concept should also be sought as well as asking them how they get their intelligence at present. Business support categories to prompt for include: - Growers being alerted to individual wholesalers looking for specific products and to general trends - Personal introductions for individual growers to suitable wholesalers and help provided with initial negotiations between them - Assisting growers to identify gaps in supply (via wholesalers) and informing them what to produce - encouraging greater wholesaler engagement with growers for product programming. - Organising escorted tours of the markets for groups of growers, horticultural students, etc.
9. Ask which of the following forms of market intelligence would be useful:
Current Prices
Prospects for British crops and those of competitors in other countries
Market trends
Supply chain changes
Marketing studies
Structural changes
10. Would they be prepared to pay for such a service and on what basis? If not, why not?
11. What are your views on the social and environmental issues facing traders/growers and how this affects them?
12. Are there any other types of support you feel are needed and would be beneficial?
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Grower Feedback Comments
All individual comments
Wholesale Market Advantages:
COMMON THEME amongst the majority of respondents – Opportunity to develop new relationships and a new route to the market:
Chance to build relationships with customers. This is not easy with larger firms.
Often has direct contact with the owner of the business
Direct relationship with trader rather than when selling to supermarkets via packers.
Short route to consumer
Gives access to a range of customers (eg. small processors, market stalls, farm shops)
Provides new suppliers with a route to market. (Hard for them to break into supermarkets).
London markets useful route into independent grocers and catering sector which is difficult to supply
Picked up customers they would not even know existed
Access to niche operators
Useful alternative to multiple retailers (to varying degrees at different time of year)
Gives access to food service industry
Other comments:
Easy distribution/transport links.
No need for BRC, Red Tractor, etc.
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Simple to operate.
No long-term obligation to traders.
Prompt payments. (Often barters his produce for imported goods he can sell to food service customers).
Simple deliveries to customers in the same market.
Good feedback on goods and market situation.
Prompt payments.
Rapid turnover.
Pride in seeing family name in markets on packs.
Quick feedback on quality issues, etc.
Wholesale Disadvantages:
Risk of bad debts.
High cost of small deliveries.
Some want to work on commission.
Few wholesalers provide cash advances now. (In the past it was common for wholesalers to make advance payments to suppliers to
help their cash flow).
Volumes often small.
Provincial markets used less as demand less
The traders are very price driven, so when a truck load of produce arrives from Holland at 10% less, the traders are very quick to drop existing arrangements and move supplier.
Traders talk a lot about demand for quality British produce but in reality, it is in the main price driven.
The provincial markets tend to be dominated by one operator which reduces options.
Many (Brtitish) growers also treat the wholesale markets as a dumping ground which drives the price, quality and service levels down.
The downturn in the foodservice market, as the recession has hit people eating out, has had a real impact on the wholesale market.
High packaging and transport costs.
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Bad debt risk high.
Hard to find honest traders.
Some want to trade on commission which is not acceptable to Bratleys.
High cost of good packaging often not reflected in prices.
Often only want small quantities.
Volatile prices.
Market often depressed by large growers dumping surplus stock.
Ceased due to: Poor prices Low volumes being sold.
Slow payments.
Transport expensive.
Smaller deliveries often requested.
Hard to contact salesmen by ‘phone.
Slow delivery of price information.
Little interest in organic, etc.
Future BDM Support:
Rollout a good idea.
Suggests the BDMs or NFU should mentor new growers, in a group to include an experienced grower, business advisor and the BDM.
Interest in all business support prompts, apart from exports, co-ops and local supermarket supplies.
Thinks BDMs should only work with growers with Assured Produce certification.
Market intelligence would be of interest.
Keen to know Dutch prices.
Would like information on acreage changes from year to year.
BDMs should help with NPD such as added value ideas.
Likes idea of rollout. Could help Bratleys improve penetration in smaller markets. (Keen to develop trade in Scotland).
Interest in business support categories apart from co-ops and local supplies to supermarkets.
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Environmental credentials – Thinks markets should not accept goods not covered by Assured Produce scheme.
Most market intelligence prompts of interest. Keen to know market prices in Holland. No interest in market studies.
Likes idea of national BDM structure.
All business support categories apart from co-ops of interest.
Would like a daily market price report for products of interest to him.
Business development managers at Spittalfields and New Covent Garden have worked hard at developing the links between British
Suppliers and market traders.
They have brought to his attention new opportunities that he was unaware of and made personal introductions which have arisen in
supply opportunities.
Jon has been down to London to meet with the traders and now better understands the opportunity and some traders have been up to
Sherwood to have a look at the farms. This has been a constructive exercise which has resulted in some good opportunities:
EXAMPLE. Hammonds were supplying Spitalfields with quality produce. The trader mentioned that some of the produce was then
heading back up to Nottingham. Hammonds now supply some Nottingham up-market restaurants and catering establishments with
Fresh Produce directly as well as backhauling other produce back up from Spittalfields on their return journey to the same customers.
This was made possible through the efforts of Tim
Jon would welcome support being made in the future and believes it would be a good use of Government funding as it tends to provide
practical support and help.
Would consider contributing to the funding of the BDM’s role as long as the support was ring fenced. In other words, he would be
reticent to fund anything if he felt it was just opening up opportunities for others to undercut him when they weren’t contributing!
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Trader Feedback Comments
All individual comments except where indicated there is a common theme*
Supply chain changes:
*Most traders indicated their volumes were growing
*Two indicated volume stable
*Two indicated their volumes were declining
*NEARLY ALL indicated bad debts and credit control a major problem
Good relations maintained with suppliers and customers.
Price competition very strong.
Most product sold firm.
Despite price pressure, quality still very important.
Long-term relationships being maintained.
Need to reduce UBR and town centre parking charges to protect small retailers.
Customers looking for low prices.
Trend to ‘£1 scoop’ sales pushing prices down.
Plant health regulations a constraint on his trade.
Customers more concerned about quality than price.
Customers looking round more for lower prices.
Wholesalers have to fight suppliers to keep prices down.
Less speculation being done.
More effort made to reduce shrinkage.
Less goods on consignment.
Less sales on commission
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More long-term relationships with suppliers/customers
Believes customers fed up with supermarkets
Little customer interest in Red Tractor, organic etc.
Price has returned to be main factor in B2B sales.
More demand for UK goods.
Suppliers often seem desperate to sell.
Customers less loyal – buyers market.
Little commission sales.
No customer interest in Red Tractor, LEAF, etc.
Market is mainly price driven.
Price now main customer interest.
50% on commission, but % bought firm on rise.
More conflict with customers and suppliers due to low margins for everyone. This reflects the demand for cheap food due to the
nation’s economic problems.
About 70% goods sold on consignment.
More long-term relationships with suppliers and customers. May be due to reduction of people in the trade at all levels.
Good presentation of goods now very important (eg. little demand now for un-washed, dirty potatoes).
Less interest reported in UK produce, organic, Red Tractor, etc as considered more expensive and main customer demand is for low
prices.
Suppliers more interested in serving wholesale markets.
Suppliers keen to maintain good relationship, but customers are less loyal.
Customers very price conscious.
Customers more interested in UK goods.
Little now sold on commission.
More farm shops.
Many customers are hunting for low price goods.
UK grown produce in demand.
Demise of local retail leading to demise of wholesale trade
Better operators in meat trade have set up own direct supply chains – don’t need wholesale markets
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Chain Issues:
Hard to find suppliers able to offer exclusivity in Covent Garden.
Unable to obtain enough soft fruit.
Decline in numbers of growers and primary wholesalers at NCGM pushing up prices.
Domination of industry by supermarkets a problem.
New customers developing in food service sector
Decline in number of UK growers.
Markets often over supplied (Dutch exporters main problem).
Feels wholesalers should work to streamline supply chain and remove agents, etc.
Only able to sell for cash as has little capital.
Too much produce about.
Hard to develop good relationships due to problems with economy.
Red Tractor, etc. not important.
Number of greengrocers’ outlets going down.
More convenience stores selling produce.
Groups like Cost Cutter moving into produce.
Real power lies with supermarkets.
Plant Health problems have become very bad.
Need to develop composite B 2 B markets.
IT will become more important for sales.
Lack of capital/loans holding trade back.
Dominance of supermarkets.
Too much produce at times.
Cannot see how wholesalers can give contracts or programmes
Suppliers will be forced to reduce prices and many will go out of business.
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UK growers need to use better packaging.
UK banks reluctant to lend to wholesalers
Little interest in Red Tractor.
Feels wholesalers need to concentrate on reducing costs to meet customer’s demands for lower prices.
Need to improve image of trade – not all ‘Del Boys’!
Regulations for street traders need updating. Present rules are discouraging trade.
Need to improve status and understanding of industry with local and central government.
Industry needs an independent voice. (Do not accept FPC can do this due to its links to supermarkets).
Could trading hours be made less anti-social?
Not enough young people are going into the industry.
Continuity of supply from UK growers a problem.
Need to change market working hours.
Hard to find skilled staff.
BDM Programme:
Helpful.
Would like BDM to provide support on projects such as NPD.
Likes idea of rollout.
Could BDMs help them move into non-horticultural foods, such as meat?
Very helpful. Help with Red Tractor much appreciated.
Very helpful.
Should not move into imports.
Useful for contacts in UK.
Would like BDM to give technical assistance.
BDMs should provide introduction for imports.
Very useful.
Would like BDM to help with suppliers of imported produce in the same way as for UK grown. Wants to replace import agents with direct
links to overseas growers/packers.
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Like BDM to help with NPD, new development, etc.
National rollout would be a good idea.
Would welcome BDM support on technical issues (eg. quality).
Alerting growers to opportunities considered useful, but other prompts not of interest.
Interested in current price information, crop prospects, market trends and structural changes.
All categories of interest.
Willing to give growers programmes and buy on fixed price contracts.
Keen on programming, but not fixed price deals.
Useful. Has helped business develop.
Should work with FPC.
BDMs should also be involved in international trade (imports).
BDM should do special projects (eg. Olympic support was valuable).
BDMs could help with technical problems (eg. plant health).
BDMs could seek transport savings.
National rollout is a good idea. Would improve links between markets.
BDMs very helpful.
BDM should promote the market to new customers.
BDM should be involved in special projects eg. possible investment by wholesaler in a delivery service or development of a composite
market at WIM.
BDM could provide support on technical problems to wholesale suppliers.
Service helpful.
BDM could offer specialist commercial and technical advice to wholesalers.
Quality arbitration service could be useful.
Help growers find transport.
BDMs could represent markets to local and central government.
BDM could do special projects, eg.
Expansion of composite sales
Work with FRUCTIDOR to get better coverage of UK producers.
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Useful (2 new suppliers).
BDMs should be more aggressive in finding new suppliers. eg. They should visit farms, rather than just talk on the ‘phone.
BDMs should receive more training in structure and politics of industry.
BDMs should arrange IT training for wholesalers.
Very helpful.
Could BDMs provide an independent arbitration service on quality disputes?
Could BDMs provide wholesalers with technical support to help suppliers improve products, solve pesticide residue problems, etc.
BDMs could help wholesalers with new projects (eg. fresh carts) and Tenant Association with their projects (eg. rodent control).
Suggest BDM could write a page in the Grower trade press to tell growers about trends, etc.
Trade is too volatile for traders to give growers programmes.
Very happy with service.
Would like BDM help with new developments (eg. selling frozen food).
Would like help to get contacts with overseas suppliers.
Considers national rollout a good idea.
Very good.
Likes idea of rollout.
Feels BDM are spending too much time on ‘fringe’ issues (eg. Red Tractor, social produce supply schemes, etc.) and not enough on
core relations between traders and growers.
More follow-up needed to develop trade after introductions made.
BDMs should have good background in produce industry to be credible.
Market Intelligence:
Generally Little interest by nearly all traders except:
Current prices in UK and overseas would be useful.
Crop prospects news, market trends and structural change information would be welcome.
Could be interested in crop prospect reports and market prices in EU countries.
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Appendix 5 - FRESH CARTS CASE STUDY INTRODUCTION Fresh Carts is the title of an innovative fresh produce supply initiative involving the Greater London Authority, Department of Health, NHS, London Boroughs and private fresh produce suppliers to deliver sustainable, accessible fresh produce direct to people in London. The Fresh Carts model is based on a centrally managed and fulfilled network of branded mobile carts positioned strategically throughout the Greater London area. Fresh Carts’ tag-line “The easy way to 5 a day” highlights the connection with the Department of Health Change4Life campaign. The aims of the Fresh Carts project are to:
Provide local employment and training
Increase consumption of fresh produce
Promote a sustainable, locally-sourced, accessible food supply
The Fresh Carts initiative started in the Royal Borough of Kensington and Chelsea with the introduction of the first four carts on 10th May 2011. The launch was held the day before when Rosie Boycott, the Mayor’s Food Czar, unveiled the first cart outside Kensington Town Hall. Carts are now located at South Kensington underground station, Kensington High Street, Gloucester Road underground station, Chelsea and Westminster Hospital, St. Charles’ Centre for Health and Wellbeing and in Wood lane opposite the BBC in the London Borough of Hammersmith and Fulham. Twelve local people have been recruited through the Job Centre Plus in Kensington and the intention is to expand the pilot programme fairly rapidly, potentially locating up to 100 Fresh Carts throughout London.
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Fresh Carts launch with Rosie Boycott, 9th May 2011
Fresh Carts outside South Kensington underground station and in High Street Kensington
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BACKROUND The food-related issues facing London are immediate and urgent. On the demand side, limited access to fresh produce in the Greater London area currently reduces consumption in the capital, with well-documented implications for public health. In a world characterised by convenience, consumers are discouraged from buying fresh produce if it is not available where they are, in the format they require, and delivered to the standards they have come to expect.
On the supply side, the impact of food production on the environment has become a subject of increased focus. Unsustainable production practices, increasing food transport distances and more energy-intensive storage and preservation requirements are increasing the environmental cost of our food. At the same time, supermarket-driven pressure on producer margins are slowly driving smaller local producers out of business, with significant implications for the security of London’s food supply.
The Fresh Carts model is based on a sustainable supply chain that optimises accessibility of fresh produce throughout the Greater London area. The model leverages existing infrastructure and establishes local distribution channels to minimise the environmental cost of food production. The model also creates a new market for local producers, at a consistent, guaranteed fair price.
THE FRESH CARTS MODEL The Fresh Carts supply chain model can be broken down into four components:
1. Producers – Fresh Carts uses local producers and seasonal produce where possible, and sources a significant proportion of produce from an area
within a 50 mile radius of the Central Inventory. Produce is sourced on a “grow-to-ripe” basis, eliminating the need for expensive and energy–
intensive preservation processes. Where produce is sourced from outside that area, Fresh Carts will only source from suppliers who meet strict
production practice criteria.
2. Transport to Central Inventory – produce sourced from local producers attracts significantly fewer “food miles”. For produce sourced from
producers outside the local area, Fresh Carts employ an “Existing Capacity” transport model that utilises existing spare transportation capacity to
ship produce from the producer to the Central Inventory, with minimal incremental energy requirements.
3. Central Inventory – Fresh Carts produce is sourced by, and the distribution points stocked from, a central inventory hub. The hub-based model
allows Fresh Carts to maximise economies of scale, to optimise ordering, storage and transport efficiencies, and to strictly control the quality of
produce.
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4. Point-of-Sale – finally, Fresh Carts have established a network of branded mobile carts to deliver produce to the consumer. These carts are
distinctive, high-profile and highly visible. The centrally managed distribution carts will all be operated by staff local to the area. Staff will be
provided with free Oyster card top-ups to maximise the use of public transport and will wear a ‘Fresh Carts’ branded uniform (as seen in the photo
below).
Mobile carts will be positioned in commercial district locations with high “passer-by” volumes at peak times (commuters, tourists, shoppers etc.) and at busy points in residential areas. Cart mobility ensures that carts can be moved to meet fluctuating demand patterns. The number of products on carts will be limited to reduce handling and training costs and to minimise waste.
Central management of carts and of staff ensures that high standards and consistency of cart condition, staff training and product quality are maintained.
BENEFITS The benefits of the Fresh Carts model can be summarised under 3 headings:
Accessibility – There is a direct correlation between accessibility of and consumption of fresh produce. It is also well understood that increased consumption of fresh produce – and a shift in balance of the public diet towards fresh produce – has a direct and significant impact on public health, and consequently on the cost of healthcare provision, on labour productivity lost to illness, and on the public morale. Fresh Carts will enhance fresh produce accessibility by:
Increasing visibility and awareness of fresh produce, and bringing fresh produce physically to Londoners who might not otherwise be exposed to it.
Providing a direct supply to the consumer where they are.
Providing consumer-friendly delivery that is specific to the community and the location, that is offered in the right format, and that inspires
confidence in quality, ethics and standards.
Sustainability – Fresh Carts promotes a sustainable food supply in three ways:
Environmentally sustainable:
Transport, sourcing and operational policies are designed to minimise the environmental impact of the food supply chain.
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Fresh Carts produce is not processed, requires no chilling, and involves minimal packaging, further reducing the environmental impact.
Fresh Carts supports the shift from meat and dairy to fruit and vegetables.
It is easier to confirm environmentally-friendly production practices for locally-sourced produce and the food is less likely to be associated
with the greenhouse gas caused by recent land conversion.
As stated by Sustain, locally-sourced seasonal food “need not be imported, does not require energy-intensive conditions such as heated
greenhouses, can be produced organically, and reduces the likelihood of energy-intensive methods of storage and transport such as
refrigeration and air-freighting”.
Socially sustainable:
Provides local employment
Works in partnership with the local community.
Economically sustainable:
3 local people will be employed to operate each cart
The model delivers a fair commercial return to the operator.
Central staff and local point-of-sale staff are guaranteed a fair wage
Local producers earn a fair price.
Community – Fresh Carts directly supports London communities:
Fresh Carts looks after the local community by providing produce that meets local community requirements, by providing employment and training
to local people, and by providing a community stake in a thriving local business.
The Fresh Carts model supports London’s food security by sourcing produce from and working in partnership with local producers, and supports the
Greater London Authority’s ‘Business Development Manager Programme’ and their ‘“Capital Growth’ initiative.
The high-profile nature of the Fresh Carts model will enhance London’s reputation as a health- and environment-friendly city, particularly in the
run-up to the 2012 Olympic Games.
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DELIVERY The Fresh Carts initiative is managed and delivered by Smith and Son, a fresh produce wholesaler based at Western International Market. The company’s proprietor Paul Smith and his team have, between them, almost 100 years combined experience in the fresh produce market in London. They have a deep understanding of the needs of producers, the evolving requirements of consumers, and the vagaries of the fresh produce supply chain. They are passionate about, and committed to, increasing London’s consumption of fresh produce in a sustainable way.
In addition, the initiative is supported by the Greater London Authority to promote their Mayor’s Food Strategy and the Department of Health through promotion of their ‘Change4Life’ campaign via the Fresh Carts. It also promotes the NHS ‘Healthy Start’ initiative.
Appendix 6 - STREET MARKETS
Case studies: Kingston and Walthamstow Street Markets
Fresh produce stalls at the street markets in Kingston and Walthamstow are supplied almost exclusively by Western International and New Spitalfields wholesale markets respectively. The main rationale for this supply chain is geographic proximity and range and cost of produce available. There are 7 food stalls at Kinston market (out of a total of 80 stalls) and 16 at Walthamstow market (out of a total of 272 stalls).
Recent research undertaken by Regeneris Consulting and EBS Consulting (London’s Retail Street Markets study, June 2010) has highlighted the following:
Street markets in London supply a relatively small proportion of food consumed in the Capital, just 0.26% of food expenditure which amounts to £121 million per annum.
Customers spend £11.44 on average on food on visits to the street markets. 57% of street market customers also spend money in other shops in the area on the days they visit the street markets.
There are 118 FTE equivalent traders at Kingson market and 367 at Walthamstow market. The average turnover per street market employee is 41% of the comparable figure for the London retail sector as a whole
44% of Kingston market traders also operate stalls at other markets including Chelmsford, Braintree, Batersea, Bromley, Dorking, Kempton, Redhill and Crawley. At Walthamstow market 25% of market traders also operate stalls at other markets including Aldgate, Wembley and Pettycoat Lane.
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It is clearly a long-term career for people trading at the markets. At Kingston the average number of years trading is 25.6 years and at Walthamstow it is 18.1 years
Reasons for visiting the markets vary. At Kingston market the reasons given by customers for visiting the market included: having the day off work, presence of a butchers, value, availability of fabrics, opportunity to get out of the house, ambience/atmosphere and reputation of the market. At Walthamstow market variety, size of the market, browsing, fresh fruit/veg, being a regular customer, community feel, convenience, quality of produce, and value were cited as reasons to visit. Therefore, while the economic functions of markets are of importance to traders and customers, the surveys undertaken during this research further underline the importance of other benefits of markets, for instances as places to browse, enjoy the environment, and interact with other people
Only a small proportion of traders are interested in expanding their business (8% at Kingston and 20% at Walthamstow) although interestingly 2 of the 20 stall holders interviewed at Walthamstow market reported they would two like to move into wholesale operations
In addition to supplying produce to street markets, Western International and New Spitalfields markets have recently begun to advertise vacant pitches at street markets in London (in support of the work of the London Street Trading Benchmarking Group) with varied success.
In London in general, a greater proportion of market traders are Asian or Asian British compared to the population as a whole. It is interesting that traders of Pakistani origin (14% of the total surveyed) make up the second largest ethnic group of traders, though accounting only for 2% of London’s population. There are marked differences between markets however. Kingston market is almost exclusively made up of white traders whilst Walthamstow market has approximately 60% of its traders from a white background.
Appendix 7 - CATERING DISTRIBUTORS:
Case study 1: The BDM at New Covent Garden Market, Zeenat Anjari, worked with a farmer, Alex Woollam of Woollam & Son, earlier in 2011 to introduce him to catering distributors at the market with a view to him supplying them with some of his produce (e.g. Freedom Food accredited eggs, potatoes, etc.). Unfortunately due to the large number of caged eggs in the market Alex was unable to get the premium price he was looking for. He has, however, started to supply a catering distributor, Desiree Produce, with potatoes and is in discussions with them regarding developing a premium branded potato product packed for them. The estimated turnover/year as a result
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of this introduction is £400,000, potentially rising to £1,000,000 once established. Alex Woollam learnt about the London BDM service from the NFU magazine. Case study 2: The BDM at New Covent Garden Market, Zeenat Anjari, instigated, organised and attended a two night promotional launch of WOW! living micro leaf, a new Red Tractor and LEAF Marque certified product developed by Humber VHB. Information on all buyers who came to visit the stand was collected and post-event feedback collated for Humber VHB. Copy and photographs for a press release was provided which resulted in feature articles in the trade magazines Fresh Produce Journal and The Caterer & Hotelkeeper. The result has been consistent orders for wholesalers of WOW! living micro leaf since its launch from catering distributers at the market. There has already been a 100% increase in demand to 400 boxes per week which they envisage could be in the region of 2000 boxes per week by the end of 2011
Appendix 8 - SMALL RETAIL SHOPS Case study: Buywell retail project The Buywell Retail Project aimed to improve access to fresh, affordable and sustainable fruit and vegetables in low-income areas of London through a scheme that supported local convenience stores. The project was run as a pilot from March 2009 until March 2010. In summary: Fifteen stores were supported to make changes to help them sell more fresh fruit and vegetables. Each retailer received an
individual store development plan, business support, fresh produce training, Change4Life marketing materials and a launch event. Fruit and vegetable sales increased by an average of 60% across the fifteen stores – the biggest increase was 318% and the smallest
18%. All the retailers responded positively to the project. Two key elements of success were having a store manager with good
community links, and/or having a store manager who agreed to invest in a new chiller for displaying fruit and vegetables. The customer evaluation has shown that more people are buying fruit and vegetables from the stores after the changes and
customers’ were more positive about their local store. Customers also reported eating more fruit and vegetables after the changes; just over half (54%) of those surveyed said that they
now eat fruit and vegetables daily after the changes, compared to just under a third (31%) before. One positive and unexpected result of the project was that local supplier, Community Food Enterprise is being recommended by
Costcutter as a preferred supplier to 41 of their stores in East London.
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Appendix 9 - Farm shops UK farm shops are growing in numbers and scale. They frequently start, just selling goods produced on the farm, but find they have to sell a wider range of foods to attract enough customers. Farm shops selling fresh fruit and vegetables at first, often find it difficult to achieve both attractive displays and profits. The BDMs have found that by mentoring the shop management on a one-to-one basis, they can help to ensure that produce is a viable part of their business, which ensures that they continue to sell fruit and vegetables. Key areas where help is required often include:
Range to be sold.
Mark ups to establish retail prices.
Display, price tickets, etc.
Stock control and storage conditions.
Procurement.
The BDMs have worked closely with three retail outlets in S.E. England (Boycott Farm Shop in Buckinghamshire, Newlyns Farm Shop in Hampshire and Country Market also in Hampshire). All have increased their produce sales and improved margins as a result of the BDM support.
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Appendix 10 - PUBLIC PROCUREMENT Case study: Good Food on the Public Plate Good Food on the Public Plate provides a wide range of assistance to a diverse cross-section of London’s public sector organisations including local authorities, hospitals, universities and care homes, to enable them to use more sustainable food in their catering. The project is fully funded by the Greater London Authority (GLA). The initiative provides both individual support and, where appropriate, support to clusters of organisations, either geographical or sectoral, to work together on collaborative procurement. Support services include:
Auditing food purchasing
Brokering supply chain links
Advising on contract specifications
Advising on purchasing
Offering guidance on sustainable food procurement policies
Providing networking opportunities
Liaising with suppliers
Identifying new suppliers of sustainable food
Recent work includes: The completion of the development of the ‘London Cluster’; to allow any London public sector institution with in-house catering to
opt in to large, cost-effective contracts for sustainable food A number of organisations that contract their catering including Richmond, Kingston, Redbridge, Camden and Islington councils,
UCL hospital and its partners (11 hospitals are in the group), South London & Maudsley NHS Foundation Trust, SOAS, the University of London and TfL are also being supported.
The project also helped the ‘Chelsea Cluster’ (the Royal Brompton and Royal Marsden hospitals, Imperial College, Lambeth Hospital, Thamesbrook Care Home) tender for fresh, seasonal fruit and vegetables - the winner of the contract was a farm in Kent.
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Promoting sustainable fish, to highlight and make measurable progress on an issue of immediate sustainability concern, and the action public sector caterers can take to demonstrate responsible purchasing behaviour. The initiative has recruited in excess of 12 organisations who have confirmed they will take unsustainable fish off their menus and many more lined up to do likewise.
The project was independently evaluated at the end of Dec 2009, at the end of the previous stage of the project. The evaluators found that 'contracts have been signed for annual purchase of sustainable produce to a total value of £1.5m'. Furthermore 'Contracts already out to tender are taken into account, the overall impact of the strand is significantly greater, indicating that the strand has resulted in an increase spending on sustainable food around £6 million'.