Scheme could improve food chain efficiency

The recently launched Farexchange scheme, funded by Yorkshire Forward, and led by the English Food and Farming Partnerships (EFFP), said it aims to ensure that companies involved in the processing and manufacturing of food in the Yorkshire region of the UK are able to source the product on time, on spec and at a predictable price.

Paul Rhodes, regional manager EFFP, said that the aim of Farexchange is to improve communications along the supply chain links and improve efficiency as a result.

He argues that security of supply and quality of raw materials are key issues for UK food processors:

“Global food shortages and crop failures have caused sudden and alarming process movements with dramatic consequences for many businesses. ​What is becoming an increasing concern for food companies is quite simply whether they can reliably source their raw materials at all, in a consistent manner.​

"However, the challenges posed by a volatile marketplace also present opportunities and it is these the Farexchange initiative intends to develop."​

He said that the scheme can connect food processors with regional producers to promote sourcing of ingredients locally.

Rhodes said that Yorkshire is one of the largest food producing regions in the UK, and to ensure future growth in the region, this project aims to help create new joint ventures and partnerships.

He explained that Farexchange offers food companies and farmers services such as facilitation, match-making of manufacturer with produce supplier, support in the drafting of contracts and mentoring.

According to Rhodes, the initiative involves projects such as Walk the Supply Chain, which allows food companies meet all the players throughout the chain so as to understand their individual needs, while its Bridging the Gap scheme involves virtual team building along the chain.

The Farexchange project is also developing ways of devising contracts between producers and manufacturers that offer greater flexibility and predictability of pricing, thus building confidence and trust throughout the chain, argues Rhodes.

He said that there are already positive signs, evidenced by the recent work of EFFP, that food companies are ready and keen to look at new ways of working with others in the chain, including farmers.

A recent deal, according to Rhodes, has linked over 100 Yorkshire and Humber farmers with the malting barley industry.

He said that UK malt manufacturer, Muntons, has joined forces with three farming cooperatives to build a 24,000 tonne processing and storage complex which will result in more efficient processes and reduced haulage costs when it starts operating in April 2009.

Rhodes said that Muntons has already devised unique contracts between itself, farmers and Muntons’ customers such as Carlsberg UK, InBev UK and Diageo, a collaboration that aims to ensure the continuity of supply and demand for malting barley.