First for 24-hour farm and food business news
"Give a man a reputation as an early riser, and he can sleep ’til noon." Mark Twain


markets
The uplift in cattle prices of recent weeks slowed in week ended 11th May read more
With more new season lambs entering the market, the dynamics of the trade have started to change read more
Provisional data for April milk deliveries of approximately 1,111m litres are 93m litres (7.7%) down on the previous year read more
In April, the DAPP averaged 160.9p/kg, almost 4p up on the month. At the same time, the average retail price came down by a small amount read more
The GB weekly average price fell by £7.68/t to £295.35/t and the free-buy average fell by £22.02/t to £368.39/t. read more
The first USDA estimates for world production in 2013-14 forecast record maize and wheat production, citing larger planted areas and a rebound in yields from the US (maize) and the Former Soviet Union (wheat) read more
The USDA has released its first soyabean supply and demand estimates for the new season read more
UK malting barley export prices are at €245/t FOB (spring, South Coast) w/e 11th April. read more
The latest National Statistics produced by Defra on the activity of UK hatcheries and poultry slaughterhouses. read more
USDA’s latest quarterly stocks report, released on 28th September, estimated US maize stocks (at 1st September) at 25.1m t, down 12% on the same point in 2011 and the lowest since 2004. read more

 
Take5

Back to:: Home -


Justin King

SAINSBURY’S EMBRACES THE CHANGING RETAIL ARENA

Chief executive of Sainbury’s Justin King discusses with Iona Walton the recent success the chain has revelled in and its commitment to relationships with farmers

After years of stagnant outlook and expectation, Sainsbury’s is back on form and snapping at the heels of Tesco and ASDA. Spring saw one of the retailer’s best ever performances with like-for-like sales up 7.8% in the 12 weeks to 13th June. Fundraising activities have generated £432m, enabling the 140-year-old retailer to expand its store base by 15% by March 2011. Chief executive Justin King, the man behind the momentum enjoyed by the supermarket, says the fact that Sainsbury’s will add more footage in the next two years than in the previous five will create up to 10,000 jobs. In addition to generating employment throughout the UK, Mr King is set on bridging the gap between farmers and consumers. “At their core, our farmer development groups focus on connecting farmers and consumers as this is widely acknowledged as being an area of former weakness in the supply chain,” he explains. “Farm businesses in the UK were not vertically integrated as in other parts of Europe, but over the past two to three years, farmers and producers have become significantly more interested in consumers. They want to take stock, understand their current and potential customers and see this as the route to building a sustainable business in the future. A high value is placed on this information and successful farmers and producers make a conscious decision to seek it out.” OVERCOMING CHALLENGES The problem of the lack of vertical intgration arose in part as a consequence of the subsidy regime, but the segregation of farmers, processors and retailers augmented it further, believes Mr King. “UK consumers had become uniquely disengaged with where their food comes from, but the past few years have seen radical changes in this area,” he says. “Consumers are being more challenging than ever before. At Sainsbury’s we reacted to the trend by setting up an integrated chain that offers increased traceability.” Recent initiatives at the supermarket chain that support UK farmers and producers include the launch of a Cheese Development Group and the sourcing of own label cheese, milk and cream from the UK, the year-round dedicated supply of lamb reared by young Welsh farmers for all stores in Wales, and a contract with grain co-operative Camgrain that means all flour for Sainsbury’s in-store bakeries will be derived from the UK. “In completing our conversion to 100% British flour, we’re able to establish an efficient and traceable UK food chain that underpins our commitment to British farmers,” says Mr King. Despite volatile milk prices, Mr King has avoided a long-term pricing commitment to dairy farmers. “While we continue to invest in our dairy farmers, I don’t believe that having a segregated milk supply or a contractual price would be of long-term benefit to the industry as it would cause inefficiency within the supply chain,” he says. “Local and British are trends that are here to stay, and providing great value for money is a given. The food and farming industry should maintain its focus on farmers’ positive attributes and assets, and respond to continued challenges of taste, environment, stewardship and animal husbandry.”

 

Site design Surface Creative, integration by 360 Solutions
© Grove House Publishing Ltd, a Ten Alps Company, Hendal Oast, Hendal Farm, Groombridge, Kent TN3 9NU
info@ghpublishing.co.uk | 01892 861664