"There are no miracles in agricultural production." Norman Borlaug


First for 24-hour farm and food business news

WEATHER London 21.1 (C)
markets
The average price of prime cattle at GB auction markets increased slightly in week ended 11th August.  read more
In the week ended 7th August deadweight sheep trade strengthened week-on-week. The new season SQQ increased to 368.9p/kg, up nearly 2p read more
 UK total milk sales by volume stood at 5.0 billion litres in the year to 12th July, 1.1% higher compared with the previous year. read more
The DAPP fell by a penny in week ended 7th August to 144.6p/kg.  read more
    The overall GB Average Price fell £10.32 to £161.69/t. The Free Market Average fell £10.61 to £174.18/t, as supplies increased. read more
In the latest USDA world supply and demand report, global wheat production is seen at 646 million tonnes, down 15m tonnes on July, (680m t in 2009-10). read more
The heatwave over mainland Europe also affected the OSR crop. Analyst Oil World now estimates EU rapeseed production to reach 20.44m t, down from 21.6m t harvested a year ago. read more
With the European Union barley crop now seen at 8.9 million tonnes lower than 2009 at 53m t by analyst Strategie Grains, concerns have been raised over availabilities of barley across Europe. read more
British imports of fresh, chilled chicken continued to rise in the first quarter of this year, confirming that domestic production has not been able to meet demand.
read more

 
Take5


Red Tractor reigns, but where is its marketing budget?
Published 11 June 2010 - 17:11
Print

The UK’s food marketing and promotion activities may need improving, but the message to buy British is getting through consumers. And a big factor in their purchasing decisions is the Red Tractor logo, writes Jane Jordan.

Shoppers identify and trust the tractor - more than they do supermarket labels - because they understand what it represents. They look for it when purchasing food products and it has particular significance on purchases of meat, poultry and eggs.

These findings come from a vox pop carried out Royal Agricultural Society of England (RASE) at last year’s Royal Show. They were presented to farmers during a debate at this year’s Pig and Poultry Fair: “Can we get consumers to buy more British?”.

On the whole, producers liked what they heard. Consumers were beginning to understand why British was best and that the Red Tractor mark stood for quality assurance, food safety and higher welfare standards.  However, they were less than impressed to hear that the Red Tractor initiative has no marketing budget but relies solely on income ‘donated‘ by industry organisations such as BPEX and nominal membership fees charged to independent food packers/manufacturers to cover the costs of featuring the logo on their merchandise.

For example, BPEX uses supports the Red Tractor initiative with between £2million and £3million of levy payers money. It links in with BPEX’s own promotional activities and has  proved a very valuable marketing tool. Consumers understand what the logo stands for and why it appears on packs of British pork, bacon, sausages and ham. It strengthens the identity and differentiates British pigmeat products on the retail shelf - particularly those sold by the major multiple retailers.

Retail benefit but no support

The Red Tractor mark - now ten years old - is a producer driven initiative and, although retailers gain significant benefits from using the logo, they do not contribute to its upkeep.

Producers and processors say this now needs to change. The British food market has evolved and the Red Tractor is a prominent and beneficial asset to all sectors of the food chain - retailers included.

Food producers believe that after a decade of success on a shoestring, Red Tractor funding needs a radical overhaul.

Speaking at the BPPF debate Richard Lowe of AHDB said that public interest and awareness of food issues have never been so strong. Security, country of origin, sustainability and environmental impact are key consumer concerns and areas that British food producers could capitalise on. He said it was time for some ‘hard thinking’ on how the Red Tractor could be developed and better utilised to increase market share for British produce.

"The problem with Assured Food Standards is that it doesn’t create enough money for marketing - the question now is, how can we create sufficient funds?" he added.

He blamed a lack of investment in a marketing strategy, rather than failure of the marketing activities undertaken. On the whole the Red Tractor had proved extremely successful, but it now needed greater financial support to go forward. Recovering more costs from the retail sector was a feasible option, he said.

A small (pence) per pack licence fee earned from every pack sold that displays the logo could generate £millions and the idea is being discussed with retailers. But they have mixed views. Although they openly support the Red Tractor, as it endorses many of the standards and assurances of their own brands, they are reluctant to stump up to any direct funding.

Andrew Nicholson, Senior Technical Manager at the Co-Op, with responsibility for frozen and chilled foods and animal welfare said that supermarkets have a primary role in promoting British food using the Red Tractor logo. The Co-op fully supported the scheme as it offered independent validation of quality assurance and safety without signifying ownership and shoppers like that. They trust it, especially on fresh produce such as meat and eggs, and that is a valued asset. However, he said charging a fee per pack to generate income would only push up prices. Retailers would just pass on any additional cost to consumers.

Brand potential

Currently, the Red Tractor standard is used by independent food packers/manufacturers as a bolt on to their own and their customers’ marketing and assurance standards. All products that qualify for the Red Tractor mark must comply with stringent regulations governing quality assurance, safety and animal welfare. It is not a ‘brand’ and not promoted as one, but if this RASE vox pop in some way represents public opinion, then this initiative has serious ‘brand potential’.

The Red Tractor is tremendously valuable to our industry and an effective marketing tool. It is a recognised and sought after label that deserves robust investment. If it is to plough ahead and become more prominent in the market place it warrants solid financial backing and a planned marketing strategy. With commitment from all sectors of the food chain it could help to change the fortunes and secure the future for Britain’s farmers and food producers.

Red Tractor Week is 14th – 20th June 2010

 


Site design 42 Communications Ltd in association with Surface Creative, integration by 360 Solutions
© Grove House Publishing Ltd. Hendal Oast, Hendal Farm, Groombridge, Kent TN3 9NU
info@ghpublishing.co.uk | 01892 861664