BREEDING SUCCESS
Fruit and vegetables are helping to drive Scotland’s food and drink sector, which is worth more than £100 million.
The country is home to many leading fruit and vegetable growers and associations, which have scored major successes worldwide. One such firm that has a far reaching network is the Scottish Crop Research Institute (SCRI).
The Invergowerie-based institute looks out onto the picturesque Sidlaw Hills and the Tay Estuary, and is a perfect setting to take stock of recent events. SCRI is riding high on its achievements and, having recently taken on new soft-fruit contracts and released new raspberry and blackcurrant varieties, it is also seeking to boost its international connections.
SCRI hit the headlines in late August when, during a visit by Chinese government officials, it was announced that China would open its doors to Scottish seed potato mini tubers. The institute has strong ties with the mainland and is currently working with a Danish drinks company in China, which has expressed a strong interest in using SCRI’s raspberry and blackcurrant varieties.
SCRI is also expanding its business into South America, and growers in Chile, Peru and Argentina have all expressed interest in the institute’s raspberries and blackcurrants.
“SCRI is almost unique in that it’s an institute that still produces crops,” says Peter Gregory, chief executive and director. “The commercial wholly-owned subsidiary of SCRI, Mylnefield Research Services (MRS), employs breeders and this enables the institute to deliver new varieties to commercial companies.”
The institute manages 490 licenses in 23 countries for a range of crops, including soft fruit, potatoes, turnip and kale. Varieties bred at SCRI are being trialled all over the world, including China, Cuba, Egypt and Australia.
According to a report by economic analyst DTZ, SCRI delivers at least £160m - and possibly as much as £227m - of revenue to the annual economy.
“We genuinely didn’t know what the outcome of the report would be and we were delighted at the value they came up with,” Gregory says. “Just as important were the positive comments received from growers and marketers about SCRI’s fruit and potato varieties, and the strong relationships we have with them.”
Given that there is very little public money devoted to breeding, the SCRI’s achievements are all the more impressive. SCRI receives funding from the Scottish Executive and the European Union, as well as a range of commercial contracts.
The DTZ report highlights the importance of new varieties of blackcurrants and raspberries, says Gregory. “Our research means that new varieties can extend the season and provide new opportunities for growers and retailers,” he adds.
According to Gregory, 95 per cent of blackcurrants grown in the UK are SCRI varieties. The institute works closely with Ribena manufacturer GlaxoSmith Kline and two to three new blackcurrant varieties will be released later this year. “These new varieties are resistant to mites and have higher levels of vitamin C,” Gregory says.
Furthermore, SCRI has recently entered into a new contract with a blackcurrant company and a sweet blackcurrant is being developed for the fresh fruit market.
SCRI is also well known for its raspberry activities. The institute breeds raspberries for a consortium of companies, and in 2006 was responsible for releasing the first new raspberry variety for 10 years.
The Glen Doll is a late-season variety which, according to SCRI, has superior flavour and shelf life, as well as in-built defence against aphids. The fruit arrived in shops this summer.
SCRI’s Glen Lyon variety may not have taken off in Scotland, but it is performing well in Spain. According to reports, the variety accounts for more than 50 per cent of the crop in Andalusia. MRS, which began collecting royalties for the production of Glen Lyon in 2006, says: “Spanish raspberry production complements that of the UK, providing fruit to the UK consumer out of season.”
SCRI has also enjoyed success with its Loch Lomond blackberry, which Gregory says is the leading international variety.
Attention is also being focused on the UK blueberry sector. The UK has produced blueberries for the past five to six years, and the business is growing. Although critics say growing conditions fail to match those of other international countries, Gregory is optimistic about the opportunities closer to home.
He says: “Blueberries need acidic soil, which is what we have in Scotland. If they can grow anywhere in the UK, it will be here.”
The man on the street is often surprised by how long it takes to develop new varieties, but the truth is there is no such thing as an overnight success. “If breeding is straightforward, varieties can be developed in eight to nine years but most take 10 years,” says Gregory. “Others can take a lot longer. The cross for Glen Doll was made in 1990 and it was only released in 2006; therefore, it took 16 years from a cross to release.”
SCRI is also looking at the health benefits of soft fruit and has identified several compounds that are beneficial to consumer health. “Our research on human health and nutrition continues to expand with the finding that ellagitannins from berry extracts have significant anti-cancer effects, and that raspberry extracts are effective against the initiation, growth and invasiveness of colon cancer cells,” says Gregory.
Potatoes also represent a major part of SCRI’s work. “SCRI has commercial relationships with each segment of the potato market, from crisp and chip manufacturers to producing new potatoes for salads,” Gregory says. “We have a huge research programme, certainly the biggest in the UK.”
Last October, the potato variety Mayan Gold was launched by SCRI’s partner Greenvale AP into two UK supermarkets. This was the first time a Solanum phujera was available to consumers.
As well as breeding new varieties, the SCRI also devotes a considerable amount of research and testing on fighting diseases, such as Late Blight and Black Leg.
According to Gregory, much progress has also been made in genetics and SCRI is hoping to secure funding for an international programme on gene sequencing this year.
Gregory says SCRI’s main objectives are to understand the genetic control of disease resistance and to make the most of existing resources that farmers have at their disposal. “This means growers won’t have to use so many pesticides and will be able to use water and fertilisers more effectively, therefore minimising the potential adverse effects on the environment,” he says.
“Disease resistance comes about through scientific knowledge - we know about genetics and are able to develop specific markers of disease, which speeds up the process.”
One effective way SCRI is able to promote its work with its partners is through one-day events, such as Fruit for the Future. This year’s soft-fruit event took place on July 19 and participants were invited to join organised tours of the fruit trials and research plots. They were also given the opportunity to talk at length with the research staff and try new soft-fruit varieties.
SCRI recently unveiled its new look website. “The website link will stay the same - www.scri.ac.uk - but our main aim is to make research more accessible to a wider audience,” says SCRI’s Lorraine Wakefield. “There’ll be more information about us, and we’ll be including case studies and in-depth interviews.”
Enjoying strong links with the fresh produce industry, both at home and abroad, producers look set to benefit from SCRI’s activities for many years to come.
ASF OFFERS BEST OF BOTH WORLDS
Scottish soft-fruit specialist Angus Soft Fruits (ASF) has reported a “very positive response” to its Good Natured Fruit. The company launched its premium range of berries, which are free from artificial pesticides, in June.
“Good Natured Fruit represents the best of both worlds,” says John Gray, commercial manager, (pictured). “Usually, organic varieties are chosen for their hardiness and resistance to disease, but we’re using AVA strawberries and Glen Ample raspberries to give consumers the best tasting fruit.”
ASF is determined to bring only the best fruit to consumers. “New varieties have become trendy in recent years, but we don’t believe in bringing a new one onto the market unless there is a good reason,” Gray tells FPJ. “We’re not into changes for change’s sake.”
The soft-fruit category has seen strong growth in recent years, but growers acknowledge there is market saturation at certain times of the year. “Producers need to target production to demand,” Gray says.
Although Gray describes this year’s poor weather as “very challenging”, given the circumstances, production and yields have been good. However, the poor weather has had a detrimental effect on demand.
Gray argues more investment needs to be made to market the health benefits of soft fruit to consumers. “A huge amount of work has been done on this through British Summer Fruits, and that needs to continue,” he says. “A lot more money is spent on promoting berries in the US and Finland, and their per capita berry consumption is so much higher than in the UK.”
ASF represents many family-run enterprises and co-ordinates the growing, selling and product development of strawberries, raspberries, blueberries and blackberries grown in Scotland. The season typically lasts for six months and is supplemented with produce from European partners to provide year-round production.
GOING THE DISTANCE
Swedes and soft fruit have proved a winning combination for Stewarts of Tayside. Since FPJ last featured the Perthside-based producer back in 2003, it’s been all systems go: the company has invested in a new 2,200m2 packhouse and cold storage facility for its soft fruit, increased its swede and soft-fruit production, and expanded its haulage fleet business.
Stewarts has expanded its strawberry and raspberry production by 30 per cent, and supplies 90 per cent of its volumes to major retailers. The new facility was built last winter and this means that Stewarts now has a much more efficient cold storage, packing and out-loading facility, says md Jim Stewart.
Stewarts of primarily grows Elsanta, which Stewart says is a good tasting variety, but expensive to grow. The company has its own breeding programme, and Stewart says some promising varieties are coming on stream. However, a cautious approach is needed. “We have to trial them pretty well before we use them on a big scale with our customers,” he says.
However, the main obstacle remains labour. “It’s a really big challenge to get pickers and that is why we have invested in picking rigs,” Stewart tells FPJ.
Nevertheless, Stewart says there are definitely opportunities in soft fruit: “It’s well known that more soft fruit is consumed each year. It’s a good healthy product and people want to buy it, but it is a high cost crop given the input and the management of the crop. You need to be 100 per cent committed to grow soft fruit.”
While Scotland may have not suffered from the heavy rainfall that afflicted England, Stewart says the country still endured an “extremely wet” summer.
“The wet weather affected early soft-fruit crops and picking costs were astronomically high in June and July,” says Stewart. “Prices have been better than last year, but they are still low. We definitely didn’t see an escalation in prices because of the weather.”
The word “management” comes up a few times when speaking to Stewart. Take the controversial subject of polytunnels used to grow and protect soft fruit, for example. Stewart argues that the people moving to the countryside are often the ones who complain most about tunnels. “Growers need to address and overcome this problem; it can be done but still takes a lot of management,” he says.
In recent years, Stewarts has increased its haulage fleet to 14 refrigerated lorries. The fleet is based at its main site at Tofthill and, according to Stewart, the haulage business gives the company full control and flexibility.
“Due to the volumes we produce and move, if we had to out-source haulage to contractors, it would be difficult to manage,” says Stewart. “But we have full control over our transport needs, and this is particularly useful during the fruit season when we have a flush of fruit. We can guarantee that we can distribute it.”
Stewarts grows swedes in both Scotland and England, and its entire crop is covered in environmesh. “This is an expensive crop cover and the big challenge is to change the husbandry to suit the different growing conditions under the mesh,” says Stewart.
Although swede is considered to be a stable product, with few opportunities to increase consumption, Stewart says retailers still need good, viable, efficient companies to supply the main vegetable lines.
In terms of this season’s swede crop, Stewart is taking a cautious approach. “At the moment things look ok, but with it being so wet this summer, a full evaluation of the crops will not be possible until after the mesh is removed in October,” Stewart says.
Stewarts supplies some 60 per cent of its swedes to retailers, with the remaining 40 per cent taken by processors, wholesalers and export markets. Germany and Norway are Stewarts’ overseas markets but, according to the company, there is little room for growth.
“Our exports are an unpredictable business and involve us filling in domestic supply gaps,” Stewart says. “There is not much opportunity to expand volumes.”
According to Stewart, a number of issues face growers and over-regulation of the sector is causing numerous headaches. “The red tape is getting redder and over the last 10 years we’ve had bureaucracy heaped upon us,” he says. At the same time, many farmers are leaving the sector and Stewart says he is not so sure there is the same amount of expertise going into the industry.
However, Stewart believes there are still “tremendous opportunities” for the fresh produce sector as the country has become more aware of healthy eating. “The opportunity is there for businesses if they specialise and produce a good product,” he says.
“Scotland has a good reputation as a quality producer of fruit and vegetables,” Stewart adds. “However, it is up to the individual companies to push themselves. Retailers are very committed, where practically possible, to sourcing local food for their local stores.”
ROOTING FOR ROOSTERS
Albert Bartlett has enjoyed a whirlwind 12 months.
The UK’s biggest root vegetable grower and packer has integrated the Naturally Best operation into the Bartlett’s business, made its first move into mainstream television advertising following successful programme sponsorship activity on UKTV Food and ITV daytime, and picked up Best Campaign at the Scottish Food & Drink Awards.
“All of the above and our ongoing investment in our operation and products helped us win Fresh Produce Packer of the Year at the 2007 Re:fresh awards,” says John Hicks, Bartlett’s marketing manager. “Everyone at our three UK sites, our field teams and our growers were delighted with this award.
“Bartlett’s works with a dedicated grower group, which is integrated into our business; this close working relationship helps us to ensure quality and consistency of supply.”
The producer has a number of exciting promotional programmes in place, which will kick off in earnest during October. Bartlett’s will build on last year’s successful TV campaign and adverts featuring Rooster potatoes will run from mid-October to December.
“The theme of this year’s adverts will be the ‘Potato Game’ and they will feature a voiceover from Tom Baker,” Hicks tells FPJ. “More than 400 commercials will be broadcast on both terrestrial and satellite channels. These will highlight the versatility of Rooster potatoes and are more widely aimed to excite people about potatoes. TV activity will be supported by consumer press activity in lifestyle and retail titles.”
Furthermore, Michel Roux Jnr of Le Gavroche has joined Andrew Fairlie of Andrew Fairlie @ Gleneagles on the company’s Rooster potato packs, to provide even more Michelin-star inspiration.
“The use of Andrew and Michel allows us to understand the different tastes of the UK consumer and address these in our recipe suggestions,” explains Hicks. “Both chefs also judged our Rooster recipe competition, which generated a huge response and resulted in the winners having dinner with them at Andrew Fairlie @ Gleneagles restaurant in June. We will launch new Rooster packaging in October, which will feature the winners’ recipes and pictures of them with the chefs.”
Bartlett’s has also teamed up with olive oil manufacturer Filippo Berio (FB) to produce the recipe book Perfect Potatoes. “FB products are a good fit for Bartlett products and we are excited about this first joint activity and are looking forward to future ventures with them,” says Hicks. “We believe working with quality partners to engage consumers can have a great impact.”
There will be no escaping the Rooster brand when watching international rugby matches at Murrayfield, Twickenham and the Millennium stadiums either, as it will be popping up on boarding for key events including the Rugby Six Nations.
Bartlett’s mission is to continue to get consumers excited about food, particularly root vegetables. “We’re telling the grower story to the consumer and identifying and developing varieties which deliver improved taste,” Hicks says.
The producer is keen to emphasise how much importance it places on the taste of potatoes. “All of our activity centres around increasing consumption; the single most important factor is taste and we need to develop and promote varieties that taste good,” Hicks says. “This sounds obvious, however, the industry did lose sight of this in the pursuit of aesthetics.”
But Hicks feels that times are now changing and the sector is working hard to communicate the taste message to consumers. “The general consumer is more interested in their food than ever before and we have a generically healthy product to shout about,” Hicks says.
CELEBRATING SCOTLAND’S FOOD AND DRINK
Scotland Food and Drink is a new organisation designed to build on the country’s resources and expertise, with an ambitious aim to create an industry worth £10 billion by 2017.
“It’s about getting Scottish firms together and making more use of the expertise and support the country offers and to take advantage of market opportunities,” says Maggie McGinlay, director of Food and Drink for Scottish Enterprise.
“This launch brings together the whole supply chain with the public sector for the first time to celebrate the fantastic produce available on our doorstep,” says cabinet secretary Richard Lochhead. “By working together to grow, process, and promote the very best of Scotland’s food and drink, we can build on our industry’s record successes and continue to spread the message internationally that Scottish products are world-class.”
The fresh produce sector is likely to enjoy a significant role in Scotland Food and Drink. “There has been a lot of growth in this sector in recent years and it will be absolutely critical to achieving our £10bn target,” McGinlay tells FPJ.
Scotland Food and Drink is backed by a number of organisations including: the National Farmers’ Union (Scotland); Royal Highland and Agricultural Society of Scotland; Scottish Executive; Scottish Enterprise; and Highlands and Islands Enterprise, as well as some leading food and drink businesses. Work is now underway to recruit other food and drink-related organisations and businesses.
Scotland Food and Drink appointed Allan Burns as chairman in late July.
NEW TRADERS AT GLASGOW MARKET
Glasgow’s fruit and vegetable market has attracted a number of new traders in the last 12 months. “One unit has been leased to a company specialising in South African fresh produce and Fresh Direct has also taken a unit,” says Graham Wallace, Glasgow city council’s market manager.
Current occupancy levels remain steady at 92-93 per cent, while turnover and tonnage are little changed at £350 million and 300,000 tonnes respectively.
One of Glasgow Markets main opportunities lies in modernising the market. “Glasgow City Council is examining the options for a different way of running the market through a council owned company and possibly a social enterprise firm,” Wallace tells FPJ. “This will enable the market to look at maintenance works, such as yard repairs and electricity supplies to units, and look at its short-term future.”
Educating school children and young adults about healthy eating is also on the agenda. Wallace estimates that some 200 schoolchildren will visit the market this year via Glasgow Council Education Department’s culinary excellence programme.
“Children meet the traders, look at the different fruits and vegetables and get to take fresh produce away,” says Wallace.
Glasgow market also has strong ties with Hamburg wholesale market, and a group of budding chefs went over to Germany earlier this month for a cooking competition.
“We’d like to expand this event to include teams from other overseas wholesale markets,” says Wallace.
GRANT BOOST FOR ORGANIC ROOT-CROP PRODUCER
Scottish organic vegetable producer Tio Ltd is ploughing £2.5 million into upgrading and expanding its operations. The Forres-based organic carrot, swede and parsnip grower received a local enterprise grant of more than £266,000 from the Highlands and Islands Enterprise (HIE) network in August.
“This is great news for the company and for Forres as it is clear that there is considerable potential for the company to expand and take on new employees. I am delighted that we are receiving support with this venture,” says md William Rose.
Tio Ltd’s cold storage and washing facilities are to be upgraded and extended, and the firm has also obtained the adjacent site from Moray Council, enabling it to continue its expansion from its existing location.
Work has already begun on extending the premises, says Kirstine Dinnes, commercial manager of Tio Ltd, who adds that the company has enjoyed a strong increase in demand for its products in recent years.
“Tio Ltd also plans to expand its capacity for value-added lines and will release its new diced carrot and swede mix this winter,” Dinnes tells FPJ. The root crop producer supplies Tesco and was established in 1998.
Meanwhile, the Soil Association Scotland held a one-day training event on September 14 to explore ways of extending Scotland’s growing season for organic horticulture crops.
Extending the season: focus on protected cropping, took place in Inverness. Roger Hitchings, of the Organic Research Centre at Elm Farm, and Neil Helyer, of Fargro Limited, were on hand to share their knowledge.
SERVING THE NATION
Asda enjoys a strong presence in Scotland and its regional buying team works with 139 of the country’s suppliers. “In total, 840 Scottish lines are sold across our Scottish stores,” says Glenn Bowles, Asda’s regional md for the north. “We stock 3,600 tonnes of carrots, 4,000t of swede and 80,000t of potatoes, which are grown in Scotland for Asda.”
“All of our stores stock local products. Not only because there is a demand for such products from Scottish consumers, but also because we are committed to supporting local suppliers.”
Asda works with 53 individual Scottish growers, covering 35 regional lines of soft fruit, core vegetables, potatoes, herbs and organic production. The retailer takes produce from a wide network in Scotland that covers Angus, Fife, Perthshire, Ayrshire, Aberdeenshire, Kinross, Dundee and East Lothian.
Produce that cannot be delivered directly to its stores goes to its food hub in Falkirk (one of Asda’s 10 regional food hubs across the UK). “The hub enables local producers to deliver their products to one central point, cutting food miles and reducing their costs,” Bowles tells FPJ. “Through this hub we also encourage our suppliers to drop off their card and plastic for recycling saving one million road miles since its launch.”
Potatoes, swede and soft fruit (strawberries and raspberries) are Asda’s best-selling fresh produce items in Scotland. Bowles says: “Potato and swede are staple carbohydrates and, as such, sales are similar across the total chain. Soft fruit is very seasonally relevant, and the Scottish crop matures later than the rest of the UK. This will result in Scottish product being delivered across the country to service demand. However, we have seen a 25 per cent increase in sales of Scottish soft fruit in our Scottish stores.”
Across the fresh produce board, Asda has seen an increase of approximately 10 per cent on both value and volume sales of Scottish product in the country.
The retailer is working on having Scottish carrots in its stores for 10 months of the year. Historically, the retailer would run with the Scottish crop late in the UK season for two to three months. However, Asda is working with one of its vendors - MH Poskitt Ltd - which has joined with a Scottish grower to produce the crop for 10 months of a year.
“This will start in January 2008 and I believe we will be the only retailer doing this,” Bowles says.
Asda is also busy working on some new lines for 2008 and will be looking at asparagus and blueberries. “We have also introduced specific Scottish varieties, like Kerrs Pink and Golden Wonder traditional potatoes to add provenance,” Bowles reveals.
The firm’s newest store to open in Scotland is located in Ardrossan. Asda has formed a key partnership with the ‘Taste of Arran’, and is stocking a number of local products including beer, cheese and shortbread.
“For each of our new Scottish store openings we always put an appeal out for local suppliers to get in touch with us,” says Bowles. “Our own customer and demographic research, which is conducted before we open a store, also highlights that a range of local produce is what local people want.”
Furthermore, Asda will open two new stores in Scotland before the end of this year in Newmains and Dunbar. Between them, they will generate more than 400 jobs in the local community.
The retailer has yet to announce its expansion plans for 2009, but Bowles says more stores will open in Scotland.
Nearly 14,000 people in Scotland work in Asda’s stores and depots. “We strive for our stores to play an integral part in the local Scottish community - creating new jobs, stimulating the economy and helping improve the local environment by revitalising high streets and shopping areas,” Bowles says.
ERSKINE FRONTS MORRISONS DRIVE
A new store opened by Morrisons in Erskine, Renfrewshire, has been described by the Yorkshire-based supermarket chain as the “blueprint for future expansion”.
The smaller format store features the supermarket’s full fresh food Market Street offer and represents a departure from recent expansion strategy.
“Our new store in Erskine, the smallest store opened as a new Morrisons for many years, has successfully shown that we can now target new sites in locations that would not support a large, traditional Morrisons store,” said a statement.
“It opens up more opportunities across the country and gives us the confidence that our three-year space growth target of one million square feet will be attained.”
Morrisons claims that the 25,000sqft Erskine outlet will employ more people preparing food in-store than any of its rivals. In total, it employs 289 staff and has created 160 new jobs.
In addition to Market Street, Erskine and other Scottish stores in the Morrisons chain offer 500 Scottish products from 100 local suppliers. Erskine is also the first store in Scotland to feature Morrison’s new logo and corporate colour scheme.
The store was opened on September 10 in the presence of the Provost of Renfrewshire, Councillor Celia Lawson, Morrisons’ chairman Sir Ken Morrison, Morrisons’ chief executive Marc Bolland; and Match of the Day pundit Alan Hansen, who provides the voice over for Morrisons’ value TV advertising.
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