

Issue 1, Vol 1

Firstly, a happy New Year to you all. I am reluctant to add “and a prosperous New Year” to this as, with the current economic climate, it is very difficult to predict what 2009 will bring. However, I believe there is some consolation for the food industry as a whole as the nation still needs to eat whatever the economic situation. We have already seen some shift in ranges particularly away from luxury items to the more basic food products but, overall, volumes seem to be holding up.
The main message is that, whilst we all need to heed a note of caution, continued investment in the future is essential in order that businesses are well placed to benefit from economic improvement when it happens.
As you will know, the evolution of the CSDF to the FSDF is now complete and we are forging ahead with establishing the new organisation as the lead trade body across the entire food and drink logistics sector. I am convinced that this will benefit all members and lead to a stronger voice for the industry and an even greater range of pro-active services for members.
Our next major event is the FSDF Spring Conference on Wednesday 18th March at the Barcelo Daventry Hotel in Daventry. Full details can be found on the FSDF website www.fsdf.org.uk or later in this News Update. The conference is a unique opportunity to bring yourself up to date and to network with the rest of the industry. It is also terrific value for money with a “buy one get one free” offer that we believe is a first for this type of event.
I am also pleased to advise you that FSDF membership fees have not been increased for 2009.
It is now 11 YEARS since fees were last increased. Surely this must be unique in trade association circles and represents tremendous value for money.
I feel that it is appropriate to advise members that, after much soul searching, John Hutchings, our Chief Executive, has, after 11 years in the role, decided that he will retire from his position with the Federation in April 2009. We have been actively seeking a replacement and are, at present, down to a shortlist of candidates. We will advise you as soon as a final decision has been made. I hope you will all join with me in thanking John for all his efforts in developing the Federation into a strong and proactive organisation as well as giving us a greatly increased voice and profile with the powers that be in Government.
Finally, I look forward to seeing you at the FSDF Spring Conference in March that will be John’s final event for the Federation.
Regards
James Woodward
FSDF President
Many will remember that, prior to the introduction of the revised General Food Law, in 2004, cold stores that held food of animal origin, i.e. meat, were required to be licenced by the Food Standards Agency (FSA) and regularly inspected by the Meat Hygiene Service. With the new version of the General Food Law the FSA, in their wisdom, decided that "licensing" and regular inspection by MHS vets was not required and delegated all cold store control functions to local authorities through their environmental heald departments.
Licensing of cold stores for meat was abandoned in favour of "approval" by local authorities. All seemed to be well until we recently reviewed the list of approved stores. Although we may be wide of the mark we think that there are a considerable number of notable cold stores that do not currently appear on the approved cold store listings.
If you think you are an approved store we recommend you check that you are on the official listings that are at www.food.gov.uk/foodindustry/meat/meatplantsprems/approvedmeatplants/
Note that there are separate lists for stores in England, Scotland, Wales and Northern Ireland.
If you don't appear on the current lists and think you need or want to be approved you need to contact the Environmental Health Department of your local authority.

A report issued by the Environmental Investigation Agency is calling for the introduction of a simple and fast action plan to tackle the `ticking timebomb' of HFCs. The Environmental Investigation Agency (EIA) claims atmospheric concentrations of hydrofluorocarbons are rising 15 per cent a year faster than any other gases - and this despite the availability of `viable, low globalwarning potential (GWP) alternatives'. It argues that by giving the Montreal Protocol the mandate to phase-out powerful HFCs the UNFCCC (United Nations Framework Convention on Climate Change) will be able to focus on the more challenging issues ahead with the more abundant green house gases.
Rather ironically, HFCs were promoted by the Montreal Protocol to replace refrigerant chemicals like CFCs in order to protect the ozone layer. But it has since been discovered, argues the ETA, that HFCs present a problem rather than a solution as they are potent greenhouse gases with GWPs greater than CO2. The agency also warned that a delay would be costly in the long run, not only in environmental but in fiscal terms for countries worldwide.To add weight to its argument, it added that the Intergovernmental Panel of Climate Change has predicted.

The business secretary, Peter Mandelson, has launched temporary schemes aimed at increasing the flow of credit to SMEs. This will help many hard-pressed SMEs but it does not address the problems of larger companies, which many smaller companies partner through the supply chain.
From 14th January SMEs will have access to the Enterprise Finance Guarantee. Loans for eligible SMEs of up to £1m will be guaranteed by the government and the scheme can also be used to free-up overdrafts by converting existing facilities into loans. In addition, a £75m Capital for Enterprise Fund has been created that will allow the government to invest in viable companies which have high levels of debt. Under the Working Capital Scheme, the government will also make available to banks guarantees covering 50% of the risk on new and existing working capital portfolios worth up to £20bn. Credit lines in these portfolios will be secured and the guarantee will free up capital for new lending to all businesses with a turnover lower than £500m.
More information about the government's new schemes, including eligibility criteria - www.businesslink.gov.uk

Well-known industry figure Mike Donoghue announced his retirement from Langdons at the end of 2008. Throughout the late 80s and 90s Mike transformed Langdons from a regional haulier into a national temperature controlled logistics service provider.
Langdons said: "Everyone who works with Mike recognises what a likeable man he is. We all wish him well in his retirement and know he will heading straight for the golf course!" .

Some 865 jobs could to be lost as a result of site closures at Gloucester and Trafford Park, following the merger of the Wincanton and Culina chilled consolidation businesses.
Wincanton said: "It is proposed to migrate volumes from Wincanton's sites at Gloucester and Trafford Park into the Culina network, with effect from early April 2009.
"This proposal will affect the employment of all Wincanton employees at these sites and their associated outbases, which amounts to approximately 450 at Gloucester and 415 at Trafford Park. Should the proposed migration of volumes go ahead, it is likely that both sites will close. In the meantime, Wincanton is exploring alternative uses for the sites and seeking opportunities with current and future customers to avoid closure."
Under the deal, announced in November, the joint venture will be owned 80 per cent by Culina and 20 per cent by Wincanton.
This year's Commercial Vehicle Show has been cancelled. The Commercial Vehicle Partnership (comprising the SMMT, RHA and SOE), and the CV Show Committee, have chosen to axe the 2009 show rather than host it with reduced numbers, as the majority of leading commercial vehicle manufacturers have already pulled out.
The organisers said that despite the 290 exhibitors still keen to exhibit, it wasn't enough to maintain the show's reputation as a major international event.

Following the success of the 2007 survey conducted by SCALA Consulting into KPIs for transport in the Food and Drink industry in 2007, the 2009 follow up survey is expected to be just as comprehensive.
The results of the survey for the Department for Transport (DfT) will give the most comprehensive information defining how efficiently the vehicles are operating. It will clearly show how full the vehicles are; how many miles they run empty; and the effect on their operations of traffic and loading or unloading delays. The Survey will also show how much product is moved and how far, and how much fuel is used, and how much CO2 is released in the process. It will also indicate what progress, if any, has been achieved in the past two years.
Graham Stubbs, SCALA Group partner, said: “On March 12th, for 24 hours, the managers and drivers of goods vehicles distributing food and drink for British consumers, will be carefully monitoring the performance of their trucks. We currently have initial agreement from over 70 fleets, and we are confident that more companies will join in as the big day approaches. In the 2007 survey we measured 113 fleets, with over 9,000 vehicles covering 1.3 million kilometres.”
Roger Watkins, also a partner with SCALA, said that the survey would measure vehicle fill, empty running, time utilisation, delays to schedule, and fuel consumption on a continuous basis for 24 hours. “Workshops for participating companies will be held in mid-February and companies wishing to participate in and benefit from the survey should contact us as soon as possible” said Mr Watkins.
SCALA Group participated in the recent Food and Drink Federation event when the FDF reported progress on its Five-fold Environmental Ambition which was launched in October 2007. Members of the FDF have slashed their CO2 emissions by 17% since 1990 as part of an ambitious plan to reduce their environmental impact.
Managing Director of SCALA Group, John Perry, believes it is important that logistics and transport managers should put their support behind the initiative to reduce Carbon Footprint in the industry. “Participation in the survey will give them a benchmark of how well they are doing in achieving transport efficiency.
“It is not just a question of environmental efficiency. Performing well against all of the KPIs we are measuring will bring operating efficiency – and in today’s economic situation this is crucial. You could say that environmental efficiency brings its own rewards in lower operating costs.”
Companies wishing to participate in the 2009 survey should contact:
Graham Stubbs: gst@scalagroup.co.uk 07775 633775
Or Roger Watkins: roger.watkins@scalagroup.co.uk 07767 884326

The Payments Council which is charged with setting strategy for UK payments is looking to set a date for the closure of the centralised cheque clearing system in the UK, providing that suitable alternatives are in place.
The Payment Council was set up as a result of the OFT's Payment Systems Taskforce. It is charged with setting strategy for UK payments. In November 2007, the Payment's Council put out a consultation on a National Payments Plan and the BCCA was one of 82 respondents. Following publication of the responses to the consultation, the National Payments Plan was launched on 14 May 2008. In the National Payments Plan there is reference to imposing an end date to the centralised cheque clearing system in the UK - potentially in 10 years time. The Payments Council has stated that this would only happen if suitable alternatives were in place. However, many feel that the decline of the cheque should be left to market forces. The cheque can still be the lifeblood of small businesses, often being the most convenient way of receiving and making payments.
Would the demise of the cheque effect you ? Give us your views.
Following an announcement at the end of last year, there have been several changes to the CRC scheme which may affect your company. Changes include:
• The consultation has moved to Spring 2009
• Registration packs will be sent in Summer 2009
• Organisations have from April 2010 until September 2010 to register involvement
• Organisations contacted will need to respond to the communication to confirm involvement
• Organisations will need to collect energy use data starting from April 2010.
For more information on the changes please read the updated Carbon Reduction Commitment Briefing Note. Published by Enviros Consultancy

At last the Office of Fair Trading said yesterday it had finally cleared the Co-operative Group's proposed 1.57 billion pound purchase of supermarket group Somerfield, allowing the group to proceed with the integration of stores into the Co-op portfolio.
The OFT accepted the undertakings offered by Co-operative Group to address the competition concerns in 133 areas, arising from its proposed acquisition of Somerfield.
As a result, the merger will not be referred to the Competition Commission.
In locations where the OFT felt the Co-op would have an unfair advantage and create an uncompetitive environment, they were asked to sell locations on to another food retailer. This has been achieved to the OFT’s satisfaction allowing the merger to proceed, creating the fifth largest retailer in the UK.
• According to the latest CBI/PwC financial services survey, income and profitability levels in the UK financial services sector fell at record rates in the three months to December. Firms saw a fall in business volumes across all their customer bases, but the rate of decline among industrial and commercial companies stood out as a survey record.
• Manufacturers' input and output price inflation continued to decline in the year to November, largely on the back of falling crude oil prices, and now stand at 7.5% and 5.1 % respectively.
• RICS survey data showed that activity in the housing market remained very weak, with completed sales per surveyor falling to a new low (since 1978) in the three months to December. However, buyer enquiries had increased for the second consecutive month.
• The British Retail Consortium reported a fall in retail sales values of 1.4% in the year to December, marking the worst December decline since their survey began in 1995.
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