Work together and build strong partnerships

Sir Ben Gill, president of the NFU, and Peter Pritchard, fresh food trading director for Asda, both delivered the same message when they were guest speakers at last Friday's North Riding and Durham County NFU annual dinner at the Ramside Hall Hotel, near Durham City.

Sir Ben believed CAP reform would provide opportunities for farmers to achieve a prosperous future, but he stressed it was vital that they build proper partnerships among themselves and other sectors of the industry.

It would lead to better understanding and strength to tackle the challenging new world of operating in a market free of subsidies.

Mr Pritchard said Asda was always keen to work with farmers. "We have lots of challenges ahead and the only way we believe we can overcome them is if we work together," he said.

"We believe we are much more powerful as a joint force than as isolated forces."

He outlined the tremendous drive Asda was continuing to have to get local produce into its stores. In two years it they had taken on 1,000 local suppliers, representing a £230m turnover.

Local sausages outsold big brands by ten to one and other local products included carrots, potatoes, meat and even strawberries.

He recounted how he had met 70 irate pig producers picketing an Asda depot late one night last year. They were angry that poor labelling meant customers could not tell which was British pork and which was foreign.

Within 24 hours a new, clear labelling policy was introduced, which is used on other meats and products identifying exactly where they have been produced.

It had created extra costs but increased British sales had covered that expense.

Mr Pritchard said the UK food supply chain was fragmented. Asda's objective was to be in face-to-face contact with its suppliers. It wanted a relationship where they could look each other in the eye or pick up the telephone and talk directly.

"We are aware it is a very difficult time in the food chain and can see increasing complexity," he said, adding that working together would give all parties a combined strength.

Sir Ben did not believe the industry appreciated some of the complexity of the changes and pressures it faced. He felt the issue of food security was coming round full circle.

"The reality is that, in 1999, China exported 30m tonnes of wheat. This year it is a major importer and will probably remain so," he said.

The reason wheat prices rose last year was that world-wide stocks had been depleted to only 60 days supply. "That is mighty close in anybody's book," said Sir Ben.

Beef was also finely balanced, at just 2,300 tonnes of intervention stocks throughout Europe; this year the EU would be a net importer.

Sir Ben said much had been said about Lord Whitty's speech at the Oxford farming Conference.

He had not been there for the speech, but said the historic system must be used to calculate the single farm payment, not a hybrid system which Lord Whitty was said to have favoured at the conference.

"The disruption that could be caused if the Government gets it wrong could be very serious," said Sir Ben, who believed the historic system would also be much simpler to operate.

* See right for more reaction to Lord Whitty.