Issue 7, Vol 1

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FEDERATION NEWS

Frozen and Chilled Foods Golf Day - 20th May

For the first time, FSDF were invited to assemble a team to take part in the annual Frozen and Chilled Foods Golf Day held at the De Vere Belton Woods Hotel and Country Club near Grantham, on a beautiful sunny day. Click to read more

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FSDF Golf Day

Now taking Bookings Click to find out further information

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Exhibit at IMHX with the FSDF

This year FSDF will be supporting the IMHX show at the NEC and have agreed to head the Food Logistics Pavilion. Click to find out further information

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The Who Cares? Trust - Annual Charity Bike Ride 24th - 28th June

FSDF Chief Executive - Chris Sturman is seeking your support for an annual charity bike ride to raise money for children in care supported by the Who Cares? Trust, a registered charity that supports children and young people who are in public care, often through no fault of their own. Click to find out further information

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COMMITTEE FOCUS

Technical and Safety

Non Compliance Costs Campaign

The non-compliance costs campaign addresses the issue of non-compliance with air conditioning inspection requirements and f-gas legislation. Click here

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Workplace temperature update

With summer on the way, there will undoubtedly be predictions of a hot summer in the media and with it, some uncertainty among organisations regarding the thermal comfort of workers. Click here to read more

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Get your free SPC White Paper

Hazard Analysis Critical Control Point (HACCP) is a food safety management system designed to ensure the safe production and packaging of food. It is a standard which has been accepted worldwide. Click here to find out how

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HSE issues warning to beverage trade after man loses part of his leg in an explosion

The UK Health & Safety Executive (HSE) has issued a warning to firms filling and testing mixed gas cylinders for the beverages industry after a man lost part of his leg when a cylinder he had just finished filling exploded. Click here

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Business Affairs

Summary of steps needed to determine if you qualify for CRC

Remember that registration for Carbon Reduction Commitment is currently underway.Click here to find out

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Business Continuity Plans can be good for your insurance

The Business Continuity Institute (BCI) has published its report into the link between good Business Continuity Plans and Business Interruption (BI) insurance Click here

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Meat industry concerned by climate challenge

The meat industry feels under siege when it comes to the environment, with nearly three-quarters rejecting the idea that production poses a credible threat, and 75% believing the industry is being made into a scapegoat. read more click here

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Logistics Management

Logistics Link Live - where logistics and warehousing comes to life!

Logistics Link Live will be taking place 16 - 17 June 2010 in the Ricoh Arena, Coventry. Don't miss this market leading Show in its first class new venue to find out more click here

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BUSINESS NEWS

ACS&T Logistics announce end of year figures

Despite difficult trading conditions throughout the year, ACS&T Logistics, one of the UK’s leading provider of logistics solutions has announced positive figures for the year ending December 2009.to read more click here

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Creating and Managing a Sustainable Food Supply Chain

THE NEW BOOK FROM SUPPLY CHAIN EUROPE - FSDF Members discounted price to find out more click here

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Waitrose predicts sales of ice lollies to soar

With the sunshine tempting Britons outdoors, and the trend for retro foods continuing, original childhood ice creams and ice lollies will be this year’s must-have sweet summertime treat for adults and children. click here to read more

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An eruption of media hype, but so far your veg are safe

Despite the headlines about empty shelves, UK grocery has got off quite lightly. Click here to read more

Sleeping with the enemy delivers big wins

Supply chain collaboration between rivals is essential for boosting profitability and sustainability, says Dan MyersClick here to read more

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Brakes Group buys Browns Food Service

Foodservice supplier Brakes Group has bought out catering butcher Browns Food Service to increase its customer base and strengthen specialist meat availability. Click here to read more

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Schaefer lightens picking load for Yankee Candle® Europe

Schaefer lightens the load for Yankee Candle's European Distribution Centre Click here to read more

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Chalcroft's Coca-Cola Project Enters Next Phase

Chalcroft Construction is due to complete the civils phase as part of the transformation of a disused production area into a new bottle blowing and filling line at Coca-Cola Enterprises’ (CCE) Edmonton site. Click here to read more

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CBI

Recent news from the CBI

Click here to read more

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LEGAL & TAX UPDATES

New rules for Tiers 1 and 2, and other changes to immigration

On 6 April 2010, the Government made significant changes to Tiers 1 and 2 of the UK’s Points-Based System of immigration (PBS). Click here to read more

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20% VAT would cost 163,000 jobs and reduce consumer spending by £3.6bn

A VAT hike to 20% would cost 163,000 jobs and reduce consumer spending by £3.6bn in the next four years, according to new research from the British Retail Consortium. To read more click here

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Frozen and Chilled Foods Golf Day - 20th May

For the first time, FSDF were invited to assemble a team to take part in the annual Frozen and Chilled Foods Golf Day held at the De Vere Belton Woods Hotel and Country Club near Grantham, on a beautiful sunny day.

The team included James Woodward and Garry Tilburn, FSDF past Presidents and Chris Sturman CEO.

Up with the leaders in the 9 hole preliminary competition in the morning, the afternoon was less successful althought James recieved the prize for the runner up in the Medal Competition for the low handicap competitors.

All agreed it was a most enjoyable day at which a number of other FSDF companies had fielded competitors or teams.

We are grateful to Richard and Martyn Cogan, publishers of Temperature Controlled Storage and Distribution Magazine (TCS&D), for the opportunity and look forward to providing a team next year.

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FSDF Golf Day

 

 

 

 

 

 

 

 

 

 

 

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Exhibit at IMHX with the FSDF

 

 

 This year FSDF will be supporting the IMHX show at the NEC and will be organising and managing the Food Logistics Pavilion.

The show runs from 16-19 November and presents a unique opportunity to showcase your solutions and services to key food and drink supply chain decision makers. Stands are available in the Food Logistics Pavilion in 3m x 2m and 4m x 2m sheel scheme booths. For more information and to book your space at the show contact Rob Fisher on 01895 454 442 or email robfisher@quartzltd.com.

Spaces are limited and there is a discount for FSDF members.

 

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The Who Cares? Trust - Annual Charity Bike Ride 24th - 28th June

Just a brief message to seek your support for our annual charity bike ride to raise money for children in care supported by the Who Cares? Trust, a registered charity that supports children and young people who are in public care, often through no fault of their own.

This year we are travelling from Newcastle upon Tyne, round Kielder and over the Pennines to Carlisle and then return to Newcastle along Hadrian's Wall and Otterburn between 24th and 28th June. It will be testing but we are intrepid!!

Further details can be obtained at the website www.thewhocarestrust.org.uk

 

50 of us are aiming to beat last years total of £45,000 so every little helps, and larger means a lot more. You can give using my Justgiving page - www.justgiving.co.uk/chrissturman

 

 

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Non Compliance Costs Campaign

About the Campaign

The non-compliance costs campaign addresses the issue of non-compliance with air conditioning inspection requirements and f-gas legislation.

The campaign aims to highlight the growing concern in the industry about the lack of compliance with the Energy Performance in Buildings and F-Gas Regulations in an attempt to drive the government to deliver a more successful approach.

With rates of compliance of Air Conditioning Inspections at less than 5% (compared to 80% for Display Energy Certificates and 70-75% for Energy Performance Certificates), we believe it is time for industry organisations to unite as one voice to raise the issue of non-compliance up the government agenda and promote the benefits of increasing compliance rates.

If the UK is to realise the reduction in carbon emissions expected from the introduction of energy certification legislation then the whole industry needs to act now to ensure that Air Conditioning Inspections fulfil their potential and that clients open their eyes to the benefits, both short and long term, that the inspections and their accompanying reports can bring to their buildings. The business case for saving both money and carbon must be seen to be strong enough so that organisations start to view inspections as a real benefit, something that can truly add value to the business and have a real and lasting impact on the bottom line.

The campaign will give the concerns of those across the industry more credibility and make the issue more visible. We aim to harness the support of as many individuals and organisations in the industry to make our case as successful as possible.

By signing up to support the campaign you will be helping to strengthen our campaign and our call to action for the government, and by downloading and displaying the campaign logo you will be helping us to give the issue greater visibility.

For further information on the campaign CLICK HERE

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Workplace temperature update

The Institution of Occupational Safety and Health (IOSH) recently assisted the Health and Safety Executive (HSE) in the latter’s current review of maximum temperatures in relation to workplaces, by sending out a survey on the topic to its members. The issue of maximum temperatures in workplaces has long been contentious, and many unions have campaigned for increased regulation. For example, the Trades Union Congress (TUC) has repeatedly called for the introduction of an upper limit on workplace temperature, with UK summers being predicted to get gradually hotter and drier over the coming years.

 

The Approved Code of Practice to the Workplace (Health, Safety and Welfare) Regulations 1992 suggests a minimum temperature of 16°C from the time that work starts on the premises or 13°C if physically demanding work is undertaken. For light sedentary occupations, the recommended winter temperature is 22°C +/- 2°C and the recommended summer temperature is 24.5°C +/- 1.5°C. However, there are no maximum temperature guidelines for when the workplace becomes too hot.

 

As part of its review on maximum temperatures in workplaces, the HSE wants to identify those sectors where thermal environment is an issue and to scope the full extent of the problems experienced. Specifically, the HSE would like to determine whether problems caused by thermal environments are specific to certain sectors or whether they affect all areas of industry.

 

In addition, the safety watchdog is also said to be examining practical effective steps that can be taken to address the issue in workplaces.

 

In support of the HSE review, IOSH sent its members a survey on the topic of maximum temperatures in workplaces, asking for feedback on illnesses caused by high workplace temperatures, such as fainting, headaches or nausea, as well as on injuries related to hot workplaces.

 

General guidance on thermal comfort Every person needs to be provided with a minimum supply of outdoor air for the duration of the work period. This air should be fresh and clean, and uncontaminated by discharges from flues, chimneys or other process outlets.

 

A minimum of 8 litres per second per person of outdoor air is recommended. Less than this will increase the level of pollutants, in particular carbon dioxide produced from human respiration. Ventilation should remove and dilute warm, humid air and provide air movement which gives a sense of freshness without causing a draught. It should also maintain oxygen and carbon dioxide levels — if the CO2 concentration rises above 0.75–1.00% building occupants will become drowsy and lethargic.

 

In most workplaces, windows will provide sufficient ventilation. However, if process or heating equipmentin the workplace produces dust, fumes or vapours, mechanical ventilation will be needed to remove these.

 

Humidity can also play a large part in the work environment. The relative humidity is the amount of moisture contained in the air, compared with the amount of moisture that the air is capable of holding. The recommendation for working environments is a relative humidity of 40–60%. Levels outside these parameters can be tolerated but should not be maintained for long periods.

To mitigate any effects of high temperatures and low relative humidity, employers should maintain a clearly labelled, adequate supply of wholesome drinking water, either with an upward drinking jet or suitable cups. This should be located so that it is easily accessible from the work area.

Source : http://www.croner.co.uk

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Get your free SPC White Paper

Hazard Analysis Critical Control Point (HACCP) is a food safety management system designed to ensure the safe production and packaging of food. It is a standard which has been accepted worldwide.

This White paper is designed to introduce the HACCP process and it's strengths and limitations.How it provides a systematic and effective method to analyse a process, and identifies potential biological, chemical and physical hazards that can occur in food. In addition read how, HACCP requires the development of strategies to prevent the inclusion or reduction of these hazards to an acceptable level in the food. This whitepaper discusses how combining traditional analysis of data with statistical quality techniques can increase the efficacy of a HACCP system.

Click the following link so you can fill in the form to request your copy now:

http://adept.latestproducts.info/188

 

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HSE issues warning to beverage trade after man loses part of his leg in an explosion

The UK Health & Safety Executive (HSE) has issued a warning to firms filling and testing mixed gas cylinders for the beverages industry after a man lost part of his leg when a cylinder he had just finished filling exploded.

The incident (which took place in March 2010) was the first of its kind in seven years, said the HSE, which had hoped that safeguards put in place in 2002 to prevent the filling of ‘contaminated’ cylinders would prevent such tragedies.

Such explosions were typically caused by internal stress corrosion cracking of the cylinder wall caused by liquids that were not removed prior to the next pressurisation, it said.

Safeguards not adhered to

Random sampling of beverage gas cylinders conducted in the course of the investigation into the March incident had shown that safeguards put in place in 2002 had “not always been adhered to”, warned the HSE.

“This safety alert is issued as an urgent reminder to the beverage gas industry and cylinder inspection bodies of the dangers of allowing mixed gas cylinders to become contaminated internally, and the importance of continuing to properly maintain and inspect beverage gas cylinders in service.”

Cylinders that cannot be proven to be free of internal contamination should be closely examined internally, it added.

“This requires the safe removal of the cylinder valve which must be replaced using the correct tools and torque settings.”

Source : Food Manufacturer

 

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Summary of steps needed to determine if you qualify CRC

Remember that registration for the Carbon Commitment is Currently underway.

 

If you have not already heard from the Enviroment Agency, contact them now. If you want help, software is available through FSDF and our Climate Change partners, Enviros

CRC : Environment agency : Summary of steps needed to determine if you qualify

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Business Continuity Plans can be good for your insurance

The Business Continuity Institute (BCI) has published its report into the link between good Business Continuity Plans and Business Interruption (BI) insurance

Publication follows a recent roundtable discussion that featured representation from AXA, Zurich, the Chartered Institute of Loss Adjusters, AIRMIC (Association of Insurance & Risk Managers), Marsh and the BSI (British Standards Institute). The meeting concluded that Business Continuity Management(BCM) could bring benefits in five key areas:

1. BCM was seen by insurers as a means to improve the quality of the business they are underwriting and confirmed that BCM helps organisations mitigate impact, recover faster and minimise losses.

2. BCM can be used to protect against losses incurred through traditionally non-insurable perils such as supplier insolvency or pandemic influenza.

3. BCM can be used to better understand the requirements for BI cover (and potentially lower the amount of cover needed).

4. BCM can help obtain BI cover where otherwise it would not be available. 5. BCM can help to secure optimal terms for cover.

The BCI initiated this meeting to establish a common understanding between business continuity practitioners and insurers writing cover for BI insurance on the benefits of a good BCM programme. The BCI was keen to establish clarity on five points:

1. What is the BCM link to Business Interruption insurance?

2. What do insurers look for?

3. What difference will a BCM programme make to the insurance terms provided?

4. How should a BCM manager connect and communicate with insurance buyers in their organisation?

5. What does the BCM manager need to do? (or, why is their plan not being recognised?)

Lyndon Bird FBCI, the BCI's Technical Director, commented: "The link between insurance and business continuity has been discussed for many years, but for the first time we have been able to establish a clear baseline understanding with sector leaders. Now that BCM is an established global discipline and the BCI's certification scheme has been embraced by practitioners around the world, there is a new opportunity to recognise the benefits that such quality-assured programmes can bring to insurers when considering the terms and price of business interruption insurance.

"We are looking forward to broadening involvement in the discussion as well as addressing specific action areas such as the education of risk managers and underwriters on the positive impact of BCM and what 'good BCM' looks like."

Source : Contingency Today

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Meat industry concerned by climate challenge

The meat industry feels under siege when it comes to the environment, with nearly three-quarters rejecting the idea that production poses a credible threat, and 75% believing the industry is being made into a scapegoat.

Despite this, however, nearly 90% claim to have made some measures to tackle their own businesses' environmental impact. The figures emerged following an MTJ survey of key decision-makers from across the sector to assess industry attitudes towards the environment.

A key suggestion from green lobbyists has been to reduce consumption to tackle the meat trade's impact on the environment. Yet 80% of respondents rejected this concept, even if prices rose to compensate for lost volume while 78% believed consumers would be unprepared to pay more for their meat. Meanwhile, three-quarters of respondents said food security was a more pressing problem than the environment. And while 74% claimed that the industry was taking green issues seriously, 72% of respondents said they did not know the carbon footprint of their business.

When it comes to responsibility for resolving the issue, the vast majority, 83%, said they would rather industry took the initiative than wait for the government to step in. However, 55% felt industry bodies and represen-tatives were not doing enough to address the issues, and 59% felt the Eblex roadmap, which sets out the route for industry to follow to cut emissions, did not go far enough.

Standard production methods are considered the best in environmental terms, with 47% of respondents backing them, and with free-range coming second at 19%.

Industry leaders said the survey showed there was confusion within the industry when it came to the environment. Nick Allen, Eblex sector director, said: "The results of the survey... suggest many people in the industry do not fully understand all the issues. Whether people believe meat production contributes to climate change or not, we have very clear goals that we need to reach on reducing greenhouse gas emissions 11% by 2020. Set against a background where 72% of businesses do not know their carbon footprint, yet 89% claim to have made environmental improvements, there is clearly a long way to go. Both the MTJ poll and our own recent research, show that industry is not comfortable with waiting for guidance from the government, but is reliant on bodies like Eblex to take the initiative."

BMPA director Stephen Rossides said the survey showed the industry takes the issues seriously, but that there were messages in there for the industry's sector groups: "It's clear the industry feels misrepresented over environmental issues and this may partly explain why a small majority feel industry organisations need to do more. Initiatives like the Eblex co-ordinated roadmap are real actions, but the results of the survey suggest we need to maintain this work, but also publicise more widely what industry organisations are doing."

>>United Nations report calls for meat eating reduction

>>UN advisor admits climate meat link flaws

Source :  Meat info

 

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Logistics Link Live - where logistics and warehousing comes to life!

Logistics Link Live - where logistics and warehousing comes to life!

Located in the heart of the UK and in the heart of logistics!

Logistics Link Live will be taking place 16 - 17 June 2010 in the Ricoh Arena, Coventry. Don't miss this market leading Show in its first class new venue!

The show is a unique opportunity to see live demonstrations of products, systems and services for your logistics network.

Show Highlights:

- The Live Demonstration Arena will feature leading logistics suppliers performing large scale demonstrations around the clock.

- The Free Seminar Programme will feature case-studies from leading logistics suppliers.

Attend these sessions to gain valuable information on best industry practice.

- Meet 100+ leading logistics suppliers all under one roof and discover which products fit your company's requirements.

Register free for the show now

Logistics Link Live is for you if you work in any of the following functions:

- Logistics

- Warehouse

- Distribution

- IT Management

- Materials Handling

- Operations

- Inventory

- Purchasing & Procurement

- Contracts

- Finance

- Freight Forwarding

- Commercial

- Production

- Project Management

- Works

 

Interested in exhibiting at Logistics Link Live?

Find out all the information you need to know here

Alternatively, give Tony Kaminski a call on 020 7970 4321.

http://www.logisticslink.co.uk/

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ACS&T Logistics announce end of year figures

Despite difficult trading conditions throughout the year, ACS&T Logistics, one of the UK’s leading provider of logistics solutions has announced positive figures for the year ending December 2009.

The UK wide logistics company saw operating profit increase to £1,072,725 from £801,105 on a slightly reduced turnover of £23M. This has been attributed to effective cost reduction and a reorganisation process to increase competitiveness, as well as the enhancement of its distribution offering at ACS&T’s Wolverhampton depot.

In addition, improvements were also seen in balance sheet strength and cash flow compared to 2008, with both creditor and debtor days significantly reduced.

Malcolm Johnstone, Managing Director of ACS&T commented:

“I am really pleased with the company performance over the last year. Thanks to our reorganisation efforts, we have steered a steady path through very difficult trading conditions. We will look to build on this success over the coming months, by expanding our customer base and developing our services further. Whilst the market remains very competitive, I believe ACS&T is on course to meet the challenges ahead and perform well in 2010.”

 

ACS&T Logistics is divided into three operating divisions: Temperature Controlled, Production Support and Complete Packing. Its services are provided from four centres: Grimsby (Headquarters), Wolverhampton, Tewkesbury and Scarborough. The business currently operates 12 cold stores, 3 ambient stores, extensive co-packing facilities and large, dedicated and shared-user multi-temp transport fleets. ACS&T is accredited with the BRC Storage & Distribution certificate across all sites and temperature regimes in addition to the ISO9001 and 14001.

 

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The New Book from Supply Chain Europe

‘Creating and Managing a Sustainable Food Supply Chain’

By Andrew Morgan and Beatriz Luz

 

• Published 2010 by Supply Chain Europe Limited

• ISBN 978-0-9557673-1-9

• Normal price per copy £295 FSDF Members £250

Available from

• The Julie Pizzey at the FSDF - jp@fsdf.org.uk

Why sustainability is important

Key global concerns surround climate change, water scarcity, energy efficiency and security, waste generation, environmental pollution, and social impacts. These concerns are heightened in the light of predictions that by 2050 world population will rise to 9 billion and world food consumption will double.

And carbon emissions from transportation or storage are not the only issue - production, processing, sourcing and manufacturing are all in the mix. Ecological, economic and social sustainability have now emerged as critical dimensions for the food supply chain.

This new book from Supply Chain Europe looks at how businesses in the food supply chain can meet the sustainability challenge from ‘farm to fork’. It provides essential background information, a succinct view of the difficulties, and outlines practical solutions for everyone involved.

About the authors

Andrew Morgan MPhil CMILT Dip has more than thirty years’ experience in all aspects of logistics and supply chain operations and management with project experience across the food supply chain in the UK and overseas.

Beatriz Luz BSc MSc is an independent environmental specialist with extensive experience in the delivery of sustainability projects in Europe and Brazil.

The authors have now combined their knowledge and experience to provide unique insights and realistic advice.

What readers say

“Food industry reports from Supply Chain Europe are always well researched. And their clear presentation of relevant facts and issues are invaluable for good decision-making…” Philippa David, Director IATC

About Supply Chain Europe

Contact details and further information can be found at www.supplychaineurope.com

 

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Waitrose predicts sales of ice lollies to soar

With the sunshine tempting Britons outdoors, and the trend for retro foods continuing, original childhood ice creams and ice lollies will be this year’s must-have sweet summertime treat for adults and children.

Today Waitrose made this prediction as it revealed summer has officially picked up pace with a sales spike of age-old ice lollies and cones in the last month.

During the last four weeks the volume sales of retro children’s frozen lollies jumped by 44 per cent. This equates to a 34 per cent rise in profit from the sale of iced lollies year-on-year.

With this week’s first May Bank Holiday, Waitrose believes consumers will continue to return to frozen retro treats from Rockets, Iced Fruit Lollies to Chocolate and Vanilla Ice Cones.

Waitrose frozen food buyer Vanessa Stephenson says: “Sales of retro ice lollies are on the rise as nostalgic adults buy into these treats because they symbolize happy childhood memories while appealing to their own kids too.

“I predict sales will continue to rise because retro ice creams and iced lollies are an affordable treat.

“This summer for the first time Waitrose offers a full range of retro ice lollies and traditional ice creams across all its own label ranges to meet this demand.”

Waitrose has increased the number of own label frozen lolly lines and ice creams in its essential range with the launch of the essential Chocolate and Vanilla Cone as well as the essential Strawberry Spilt.

The supermarket has also launched Seriously Fruity Orange Juice Lollies, Seriously Fruity Mango Sorbet Lollies and Seriously Creamy Milk Chocolate Lollies.

In the last month one of the most popular lolly lines was the Lyons Maid variety pack, which now represents 16 per cent of Waitrose children’s frozen lollies sales. This pack contains rocket lollies, fruit lollies and other iconic lollies so it appeals to the whole family with something for everyone.

The frozen Fruit Pastilles’ volume sales jumped by 144 per cent in the same four week period.

The infamous FAB’s sales shot up 20 per cent in this period while Seriously Choc Ices sales grew by 60 per cent.

The pretty Nobbly Bobbly, covered in retro hundreds and thousands, sales grew 161 per cent in the same period. The Cornetto’s popularity is also expanding and volume sales shot up 66 per cent. Own label cones including ones in the Seriously range are also flying off the shelves.

Source : ISN

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An eruption of media hype, but so far your veg are safe

You'd be forgiven for thinking it was wartime, looking at newspaper headlines this week.

It didn't quite reach the level of hyperbole and doom-mongering that we saw in the case of swine flu, but the media was awash with predictions of empty supermarket shelves as the ash cloud hung over the country.

There were isolated cases of supermarkets struggling to source exotic fruit and veg lines, but if the middle classes have to do without their guava for a few days, it is hardly going to bring the nation to a standstill. And the multiples didn't take long to swing into action.

A Tesco spokeswoman says that while there might not have been distinct scenario plans in place for volcanic eruptions, the supermarket responded quickly and had double-crew lorries on standby at southern European destinations to meet planes when they were able to land.

"It was a question of being able to be flexible and adapt, to support and help suppliers and make sure product wasn't wasted," explains the spokeswoman.

Over in Kenya, however, it was a very different story, with a real human tragedy emerging and the retailers' policy of heavy reliance upon airfreighted flowers brought into question.

The £300m Kenyan floriculture industry supports 1.5 million jobs in the country. Research by not-for-profit think tank OnBalance shows that the industry has lifted 91,000 people above the $2 a day income threshold and helped 440,000 people live beyond the age of 40. It is believed to have lost at least $1m for every day of the crisis, and thousands of workers were temporarily laid off.

The Kenyan industry was already under pressure from the global economic crisis and the loss of revenue even for a short period threatens the living standards of many people, adds the Fairtrade Foundation, which this week called on banks to relax payments and credit obligations for farmers, manufacturers and retailers to alleviate the suffering.

"Prospects for the one million workers who rely on the Kenyan, Indian and Ecuadorian flower industry for their livelihood are bleak as growers ditch millions of pounds worth of product," says a spokesman.

The Foundation is hoping to put together a campaign to encourage businesses and consumers to source more Fairtrade products to help suppliers recoup their losses, while it is also understood to be discussing developing more robust emergency planning in case of similar crises in future.

According to the Flowers & Plants Association, Kenyan cut flower producers whose main market is the UK multiple retail sector dumped a staggering half a million tonnes of cut flowers in the first five days of the crisis alone as they failed to find alternative routes for their highly perishable airfreighted blooms.

"This situation has been ghastly for the Kenyans and Colombians," says F&PA director Caroline Marshall-Foster. "At least Colombia supplies most of its produce to the US, but Kenya is in a bad way and its reliance on the UK is proving its downfall."

The UK imports 90% of all its blooms as a result of a long-term decline in domestic production. While florists and smaller retailers had the flexibility to buy from other sources, multiples found it harder to do so, Marshall-Foster says. That led to problems sourcing carnations, large headed roses, hydrangea and other tropical plants.

Wholesale

The wholesale markets haven't necessarily offered a get-0ut either, with many of the flowers sold coming in from the Dutch auction, having been airfreighted from outside Europe. Even though British flowers are coming into season, growers cannot simply scale up supply overnight, she warns.

"If this situation had gone on longer, we could have been looking at flower prices going up and supermarket shelves being empty."

According to F&PA there are already trials underway to make refrigerated shipping a viable alternative for some plants. "We are perfecting the technology that will allow us to ship in certain products," says Marshall-Foster.

The challenge they face is how to do that on products such as cut flowers, which are difficult to store and have a short life. Breeding work is already underway on extended shelf life, but it is highly unlikely that sea freight will become a realistic proposition for the majority of flowers.

Fresh produce

In contrast to flowers, disruption in fresh produce was kept to a minimum. The UK imports only 1.5% of its fruit and veg by air about five million tonnes because of the relatively low value of food items and the high cost of air travel. These are mainly higher-end lines such as beans, guava, other exotic fruits and some pre-cut and packed lines.

One major fresh produce supplier, Fresca Group, points out that airfreighting is only used to fill gaps between seasons and on a small number of individual lines. Its only issue has been that documents accompanying sea freight were usually sent ahead by air, but it has been able work around this.

Rectory Foods, which handles meat, fresh produce and ingredients from around the world, describes this week as "business as usual", with MD Nick Bowyer claiming the only impact had been cancelled international meetings and the inability to attend trade shows in Asia.

Minimal disruption

All the major supermarkets stressed that the volumes of airfreighted food they sold were minimal and they had not experienced any major supply chain disruption from the crisis. Both retailers and suppliers have diverted airfreighted flowers and produce to Spain and brought them overland from there.

There were isolated issues, with Tesco saying it had experienced problems importing Thai orchids, while Waitrose reported supplies of Thai baby sweetcorn and Ghanaian pineapple chunks had been disrupted.

Retailers might be patting themselves on the back over their response, but some analysts argue that behind closed doors they will be reconsidering the wisdom of importing even small volumes of high value goods by air. "'Business as usual' may not be quite the same as companies think again about supply chain design and resilience in a new and more challenging light," says LCP Consulting chairman Alan Braithwaite. "The disruption has overtaken the established framework of risk management and contingency planning in the supply chain."

Off the shelf: foods affected

Kenyan cut flowers

Colombian cape gooseberries

 Egyptian beans

Mexican spring onions

Ghanaian cut pineapple

Thai orchids

Brazilian figs

Source :  The grocer

 

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Sleeping with the enemy delivers big wins

Collaboration has become the latest in a long line of supply chain management buzzwords, but what does

it really mean?

If, in a nutshell, it refers to sharing resources to save cots, what's new? Grocery manufacturers have long been sharing space in warehouses and on trucks.

Historically, organisations that have enjoyed access to best-in-class distribution operations have been reluctant to share the competitive advantage this brings.

Nowadays, however, this emphasis on distribution as a differentiator is increasingly inappropriate. Major food stores achieve competitive advantage by their product assortment, availability and price not necessarily by how products arrive at store.

Increasingly, therefore, collaboration involves 'sleeping with the enemy', requiring a new level of openness and trust between companies. This is happening directly between manufacturers, as evidenced by the collaborative distribution partnerships formed by UB and Nestlé in the UK for example. In most cases, the grocery retailers rely on a number of logistics service providers and increasingly expect their partners to work together to deliver continuous improvements.

True collaboration brings fair and equitable benefits to both parties, which, in some cases, transcend transactional relationships.

Norbert Dentressangle makes a daily collection from the site of a neighbouring manufacturer of chilled products and runs this into a retailer's DC in West Yorkshire.

On the return leg the vehicle calls in at another customer's premises and collects and delivers a second load into another retailer's DC.

While this is a typical backhaul scenario, later in the day the chilled products manufacturer uses its own vehicle to do the same. The supplier is not a Dentressangle customer and, as this is effectively a cost-neutral transaction, no money changes hands.

As the grocery supply chain continues to shift from push to pull and fuel prices inexorably escalate, collaboration is the key to flexibility, profitability and sustainability.

Dan Myers is business unit director at norbert Dentressangle Logistics UK

Source :  The Grocer

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Brakes Group buys Browns Food Service

Foodservice supplier Brakes Group has bought out catering butcher Browns Food Service to increase its customer base and strengthen specialist meat availability.

Warwickshire-based Browns will remain as a specialist business within the Brakes Group, retaining its individual identity, customers and product range. It will continue to be managed by its current team under the leadership of MD Andrew Dalton.

Dalton said: “It is great to be a part of the Brakes Group. It is a very strong foodservice company and its business strengths and expertise will help us to offer our customers excellent products and service, as well as providing new opportunities for the future.”

Browns was established in 1983 and supplies the hotel and catering industry with fresh meat, game and poultry products.

Brakes chief operating officer Ian Goldsmith added he was delighted with the acquisition, which will mean the company will be able to significantly strengthen its meat and butchery offer to customers.

Brakes operate in the UK, France, Ireland and Sweden, with a turnover of approximately £2.2bn. It was acquired by private US equity group Bain Capital in 2007 and has also bought out firm Freshfayre and Swedish wholesaler Menigo this year.

Foodservice supplier Brakes Group has bought out catering butcher Browns Food Service to increase its customer base and strengthen specialist meat availability.

Warwickshire-based Browns will remain as a specialist business within the Brakes Group, retaining its individual identity, customers and product range. It will continue to be managed by its current team under the leadership of MD Andrew Dalton.

Dalton said: “It is great to be a part of the Brakes Group. It is a very strong foodservice company and its business strengths and expertise will help us to offer our customers excellent products and service, as well as providing new opportunities for the future.”

Browns was established in 1983 and supplies the hotel and catering industry with fresh meat, game and poultry products.

Brakes chief operating officer Ian Goldsmith added he was delighted with the acquisition, which will mean the company will be able to significantly strengthen its meat and butchery offer to customers.

Brakes operate in the UK, France, Ireland and Sweden, with a turnover of approximately £2.2bn. It was acquired by private US equity group Bain Capital in 2007 and has also bought out firm Freshfayre and Swedish wholesaler Menigo this year.

 

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Schaefer Lightens Picking Load for Yankee Candle® Europe

Schaefer Lightens the Load

Picking efficiency has improved by 50% and picking errors have significantly reduced at Yankee Candle’s® European distribution centre in Bristol as a result of SSI Schaefer’s paperless pick-to-light system installation.

Yankee Candle®, distributors of the world’s largest selection of scented candles and home fragrancing products scents to both retail stores, export organisations and the consumer via the internet, wanted to improve overall picking accuracy and efficiency by building upon the existing KDR flow racking system previously installed by SSI Schaefer.

The original KDR flow racking, designed to hold forward picking stock in over 1800 locations, is divided into pick zones in a ‘U’ shaped layout with a conveyor running through the centre. Originally supporting paper-based picking, the KDR flow racking has been significantly enhanced by the addition of SSI Schaefer’s pick-to-light system.

Yankee Candle® is already reaping the benefits of the new paperless system which uses the latest in Schaefer’s software technology by providing the advantage of flexible zone-picking to balance out workload, contributing to increased picking efficiency, meaning fewer labour hours and reduced picking errors, resulting in fewer missed or low level product shipments.

Mike Alibone, Business Development Manager, SSI Schaefer, said: “As well as improving picking efficiency the system is designed to provide enhanced volumetric packing, multiple order consolidation, order progress optimisation and shipping detail transfer to third party carriers, taking Yankee Candle® to a new level in operational excellence.”

Bruce Mitchell, Operations Manager at Yankee Candle® is delighted with the new system, he said: “The system has lifted picking efficiency by 50% whilst significantly increasing the accuracy of the pick. In fact, shipping volumes are up by more than 40% on this time last year while the number of errors is down by over 50% of last year’s figure.”

Packing - the system calculates the sizes and number of cartons required and prints labels in advance with the content. The system is reliant on using a database of carton volumetrics/packing parameters and is enabled when the operator scans the barcode on the carton label. Multiple orders can be consolidated for a single shipment to a customer.

Order progress optimisation – all defined pick zones are able to commence order picking simultaneously, even when a single large order is split across different zones. It relies on operators in each zone picking in the printing sequence of the labels which have been issued to synchronise order progression. For each pick wave the system looks at the distribution of the picks and calculates a zone size for each operator to work in, thereby spreading the number of picks evenly across a maximum of twelve operators.

Shipping detail transfer to 3rd party carriers – this allows cartons to be scanned and the details of the shipment to be transferred electronically via an interface between the SSI system to any one of five carrier systems in order for the latter to generate its own despatch documentation.

 

 

For further information about SSI Schaefer’s Pick-to-light system please visit www.ssi-schaefer.co.uk, email solutions@ssi-schaefer.co.uk or telephone 01264 386600.

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Chalcroft's Coca-Cola Project Enters Next Phase

Chalcroft Construction is due to complete the civils phase as part of the transformation of a disused production area into a new bottle blowing and filling line at Coca-Cola Enterprises’ (CCE) Edmonton site.

The team at Chalcroft is working closely with a design team led by Faithful & Gould and CCE to achieve a flagship facility that combines blow moulding and filling equipment from German supplier Krone.

Mark Reeve, managing director of Chalcroft commented: “The fast-track five month project has evolved to meet the client’s needs but a flexible and pro-active approach from all parties will see the start of production equipment being installed on schedule in March.”

The £1.5m project involves the installation of new drainage, specialist floor tiling and suspended ceilings, together with the creation of a control room and an education viewing gallery.

The building services include new electrical infrastructure, energy efficient lighting and air handling facility that utilises waste heat from an adjacent compressor system.

Chalcroft has successfully carried out a project at the same site, having previously been contracted to replace a suspended ceiling system, install plant void access platforms and update lighting schemes to a Carbon Trust-approved energy efficient system.

For more information about Chalcroft, visit www.chalcroft.co.uk

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CBI recent economic news

# According to the latest CBI Distributive Trades Survey, retail sales volumes fell in year to May, contrary to expectations of continued growth - the current decline came after three months of rising sales, and another fall in volumes is predicted in June. Elsewhere, year-on-year price inflation in the sector continued to accelerate, and employment fell further.

# In line with the CBI's economic forecast, UK GDP rose by 0.3% in Q1 2010. The latest outturn was revised slightly upwards from the preliminary figure of 0.2%, driven by a stronger rise in industrial production than initially estimated - indeed, by comparison, service sector output saw fairly weak growth.

# Business investment rose by 6.0% in Q1 2010, after falling for six consecutive quarters. While it was still down on a year ago, the annual rate of decline (-11.0%) had eased from the record fall in the previous quarter (-23.5%).

# The British Bankers' Association reported that mortgage approvals edged up for the second month running in April - but, they remained below the average of the past six months. Credit card purchases remained subdued, while lending to corporates continued to contract.

# Public sector net borrowing stood at £10.0 billion in April, up from £8.8 billion in the same month a year ago. Public sector net debt rose to £893.4 billion, equivalent to 62.1% of GDP.

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New rules for Tiers 1 and 2, and other changes to immigration

On 6 April 2010, the Government made significant changes to Tiers 1 and 2 of the UK’s Points-Based System of immigration (PBS). The changes, which are summarised below, include new points criteria for both tiers, a simpler route for very highly-skilled workers without Master’s degrees, greater flexibility for short-term transfers by multinational companies, and more protection against the use of such transfers to fill long-term vacancies that should go to resident workers.

The Points-based system

The PBS came into operation In February 2006. The following five-tier system for work and study in the UK applies to migrants from outside the European Economic Area (EEA) and Switzerland.

 

Tier 1      -               Highly-skilled individuals

Tier 2      -               Skilled workers with a job offer (replaced the Work Permit Scheme)

Tier 3      -               Low-skilled workers filling specific and temporary labour shortages

(this Tier is currently suspended)

Tier 4      -               Students

Tier 5      -               Temporary workers and young people covered by the Youth Mobility Scheme

 At the end of 2008, the rules were amended to create new categories for business and special visitors, although these fall outside the PBS.

 The 2010 changes

As a result of recommendations from the Migration Advisory Committee (MAC), the Home Office has made the following significant changes to Tier 1 and Tier 2, which

took effect from 6 April 2010.

Changes to Tier 1 (Highly-skilled workers)

  Applicants will initially be granted leave for two rather than three years. After two years, migrants will be able to extend their leave for a further three years.

  Individuals with undergraduate degrees (previously only Masters’ degrees) will nowqualify, subject to meeting appropriate earnings thresholds.

  The points awarded for age, qualifications and previous earnings have been revised.

  Applicants with very high earnings (£150,000 or more) qualify, even if they have no formal qualifications at a high level.

 

Changes to Tier 2 (Skilled workers with job offers)

 New sub-category for “intra-company transfers” — this Tier 2 category is designed to allow multinational companies to transfer skilled staff to a   skilled job in a UK   branch of the company for posts that would not otherwise be filled by resident workers.

 The minimum experience required for “established staff” was doubled from 6 to 12 months. In effect, this means that the sub-category is only open to staff who have  been employed by the company overseas for at least 12 months before coming to the UK. Applicants will not have to spend a further 12 months working overseas  before they can come to the UK.

 The maximum stay for graduate trainees who have been employed by the company overseas for at least 3 months, and who come to the UK as part of their   training or career development (but not to fill a long-term post or to displace a resident worker), is 12 months.

 Skills Transfers — this sub-category enables those who have been newly recruited overseas by a multinational company to transfer temporarily to the UK to acquire     or impart skills and knowledge relevant to their new role. The skills transfer should be incidental to the applicant’s employment overseas and his or her job or role    must not be transferring to the UK. It cannot be used to fill job vacancies or displace resident workers. The appointment, which must be for a maximum of six months  only, must therefore be additional to the company’s UK staffing requirements.  The Government did not accept one of the MAC’s recommended changes to Tier    1 — the awarding of points for professional qualifications held in addition to academic qualifications — as it is too complex, confusing and difficult to administer and operate.

Other changes

There were minor changes to other parts of the PBS that also came into force on 6 April 2010: the introduction of the new Highly Trusted Sponsor category; and

amending the rules to permit researchers who are part-way through research projects at UK higher education institutions to make an application to extend their leave under

the Government Authorised Exchange sub-category of Tier 5.  The Statement of Changes in Immigration Rules, which sets out these changes in more detail, is available on the UK Border Agency’s website at www.ukba.homeoffice.gov.uk/sitecontent/documents/policyandlaw/statementofchanges/.

 

 

 

 

 

 

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20% VAT would cost 163,000 jobs and reduce consumer spending by £3.6bn

A VAT hike to 20% would cost 163,000 jobs and reduce consumer spending by £3.6bn in the next four years, according to new research from the British Retail Consortium.

The analysis, carried out the Centre for Economics and Business Research, quantified the economic impact of a range of possible VAT increases and National Insurance increases.

It concluded that a VAT rate of 20% would reduce the country’s budget deficit by £11.3bn within a year, but the cost would be 30,000 fewer jobs in the UK. The analysis also revealed a 19% VAT rate would cost 99,000 jobs over four years while a 22.5% rate would mean 317,000 fewer jobs over the same period.

The BRC also warned of job losses if the government increased employees’ National Insurance contributions by 1% and employers’ by 0.5%. This could reduce UK job numbers by 25,000 in the first year.

The BRC is calling on the government to honour its pledge that public spending cuts will be prioritised over tax rises.

“The budget deficit is serious and has to be tackled but proposals must be judged against the implications for jobs and growth revealed by this new information,” said BRC director general Stephen Robertson. “Business growth will get the country out of the hole it’s in, led by retail. The government must now deliver a route to stability that supports companies and customers by avoiding damaging tax rises.”

Read more

Retailers braced for VAT hike (13 May 2010)

FPB hails Cameron-Clegg coalition deal (12 May 2010)

January sales ‘awful’ due to weather and VAT (9 February 2010)

No VAT reprieve for retailers in pre-Budget report (9 December 2009)

Source : The Grocer

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