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Drought summit

Defra is holding a drought summit today as large areas of the UK face the prospect of drought this year. According to Defra, the aim of the Summit is to discuss the latest  drought predictions, listen to what measures are already being implemented to tackle drought, and decide upon actions that need to be taken to reduce its impact in the future. Those attending will include representatives from water companies, the Environment Agency, Natural England, British Waterways, Met Office, representatives from the Agricultural sector and Environmental NGOs.

Since June 2011, drought has affected Lincolnshire, Cambridgeshire, parts of Bedfordshire and Northamptonshire, and west Norfolk. Following a dry winter, much of South East England is at high risk of drought.

The Environment Agency’s Drought Prospects for winter 2011/2012 report (available on the Environment Agency website together with a map showing drought risk areas) makes recommendations to water companies and other water users, such as farmers, on measures they can take to minimise the impacts of a longer term drought. er 2011)

The Environment Agency will reassess the likelihood of a prolonged drought, along with any further recommendations and report in early 2012.

Water companies that are facing an increase risk of drought are taking the following actions:

  • Anglian Water have been issued with two drought permits to refill two of its reservoirs.
  • Southern Water has applied for a drought permit for Bewl reservoir.

Defra is also working with the agricultural and food sectors to help them adapt to climate change, improve irrigation technology, develop more water efficient crops, develop markets for drought-affected produce.

The current water situation in England is available on the Environment Agency’s website, with both the monthly water situation and latest weekly rainfall and river flows.

 

  

Footfall rises but High St is "bleak"

 

Stephen Robertson
Director General, BRC

In the latest survey published by the BRC-Springboard footfall in retail shops improved in all types of locations, particularly out-of-town with a 3.1% increase, compared with high streets up 1.4% and shopping centres up 0.8%. Averaging over the last 12 months shows high streets have fared worst, with a 4.8% decline. 

The hardest-hit locations in the past three months were Scotland (-8.5%) and the South West (-7.5%). Scotland was also one of the worst in the previous three months. Wales (11.4%), Northern Ireland (7.2%) and the South East (7.1%) held up the best.

 

Diane Wehrle, Research Director at Springboard, said, "Despite recent concerns over the health of high streets, footfall defied analyst expectations over the last quarter with an uplift of nearly 2%. This is positive news considering some key players have recently gone into administration and there's been a wave of profit loss announcements. For the first time in five years December saw footfall up on the previous year as savvy shoppers took advantage of heavy retailer discounting. 

Out-of-town shopping continues to show positive growth with a 3.1% uplift as consumers seek to avoid car parking charges and take a more ‘functional' approach, becoming increasingly targeted about what they're buying. It's also worth noting footfall on the UK's high streets was stronger over the quarter than in purpose built shopping centres, with a particularly robust performance in the lead up to Christmas. This is testament to the success of town centres in attracting trade during cold weather when customers often gravitate towards a covered shopping environment.”

The national town centre vacancy rate in the UK was 11.1% in January 2012 (high streets and shopping centres), unchanged from October 2011. Northern Ireland (14.1%), the North and Yorkshire (12.9%) and East Midlands (12.4%) recorded the highest vacancy rates. 

Stephen Robertson, British Retail Consortium Director General, observed, "The lift in shopper numbers for the quarter is almost entirely down to a strong Christmas. And December looks deceptively good because it's being compared with the heavy snowfall which affected the end of 2010 and kept many people at home then. At the start of 2012 footfall numbers dipped again, showing underlying caution hasn't changed. Worries about personal finances and job security are putting people off shopping. Although inflation has started to ease, costs are still rising faster than wages. Any significant change in consumer sentiment is going to take time. The rate of town centre vacancies has stayed constant across the UK as a whole but the condition of too many high streets is still bleak.”

  

 

LINKFresh wins top meat account

Anglia Business Solutions has revealed that its LINKFresh food supply chain management solution is to be deployed at Hilton Foods Ireland, one of the Hilton Food Group plc sites, who are Europe’s largest dedicated red meat packing business with around 2000 employees and sites in six European countries and an HQ in Huntingdon, Cambs.

The two-phase LINKFresh solution will replace the existing financial solution and integrate with the operational systems of the business.  Once deployed, the solution will encompass Financials, Supply Chain Management, Manufacturing and Supply Planning.  The system will also include a mobile application for Quality Control, a cloud based retail survey solution and advanced management reporting using the Zap Business Analytics suite incorporated within the LINKFresh solution.

Pat Tracey, Group IT Manager at Hilton Food Group, said, “Our Irish business is expanding and we need a single fully integrated solution that will grow with our business.  We were impressed with the food industry functionality already included within the LINKFresh solution.  This will allow us to refine our operational practices for maximum efficiency and provide improved management information.”
 

What the weekend papers said about food & drink 20 Feb 2012

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9090329/Londons-bread-basket-wrestles-to-keep-costs-down-as-even-foodies-cut-back.html

Retail sales jump

Latest figures from the Office for National Statistics show a hike in sales values and volumes in  January 2012.  The value of retail sales in January 2012 showed an increase of 4.4% compared with January 2011 and sales volumes in January 2012 increased 2.0% compared with January 2011.

Sales volumes were driven primarily by non-store retailing, other stores and predominantly food stores. The year on year implied price deflator showed to show inflation of 2.2%.  The lowest since 1.0% in November 2009. 

In the predominantly food stores  category, sales volumes in January 2012 increased 0.9% compared to January 2011. Sales values increased 4.3% over the same period. Average price growth slowed over the period to 3.5% - the slowest annual growth since 3.3% in August 2010.

 

Fall in fresh produce conumption needs to be addressed

The latest 2011 Freshfel Consumption Monitor confirms that both the UK Government and the fresh produce industry need to do a lot more to encourage people of all ages to enjoy eating fresh produce as part of a healthy diet, according to the Fresh Produce Consortium.

Whilst the UK’s consumption of fresh produce appeared stable in 2010 and the UK fared better in comparison with some other EU member states, there is however a worrying trend across all European member states of reduced consumption of fresh fruit and vegetables.

“On a positive note we saw an increase in UK production of fresh produce as well as imports in 2010 and a slight increase in consumption compared to the previous year. However, we cannot afford to be complacent about the significant challenge we face as a society to encourage greater consumption of fresh produce as part of a healthy diet. The majority of UK consumers are still failing to eat the recommended 5 A DAY of which fresh produce is a key component,” said Nigel Jenney, Chief Executive of the Fresh Produce Consortium.

During the Government’s spending review the Fresh Produce Consortium successfully lobbied the Department of Health and helped to secure the future of the School Fruit and Vegetable Scheme.

“A few pence a day is a small price to pay to help combat rising obesity and poor diet among children. The School Fruit and Vegetable Scheme in England has proved that it can increase consumption of fresh produce and is well placed to give youngsters a head start for eating a healthy diet. We’d like to see even more recognition of the essential contribution of fresh fruit and vegetables to the health of our nation,” added Nigel Jenney.

The key findings of the 2011 Freshfel Consumption Monitor are:

  • UK production of fresh fruit and vegetables was 371.700 T in 2010, an increase compared to 2009 (fruit by 1.6% and vegetables by 1.6%);
  • UK imports of both fresh fruit and vegetables increased in 2010 compared to 2009 (fruit by 1.8% and vegetables by 2.7%);
  • In 2010 average UK consumption per head stood at 57.9 kg of fruit and 67.4 kg of vegetables. This translates into an average of 158.6 and 184.6 grams per day, or a total of 343.1 grams per day.  The recommendation of 5 A DAY is an equivalent 400 grams per day.
  • UK consumers were ranked 21st in consumption of fresh produce compared with consumers in the other 26 EU member states.

FPC drives the industry’s Eat In Colour campaign, an online resource with tips and advice for people of all ages to enjoy eating fresh fruit and vegetables as part of a healthy diet.

 

Shoppers look on the bright side

More shoppers have adapted to the new economic reality and believe the worst is behind them, according to research released by IGD ShopperVista.

Encouraged by falling inflation they are beginning to feel more optimistic about the future. In January the monthly survey of over 1,000 food and grocery shoppers found:

  • While nearly half of all shoppers (47%) still believe they will be worse off in the year ahead, this is down from 61% a year ago
  • Four in ten (40%) now believe their personal economic situation will be “about the same” over the next twelve months, up from 29% a year ago
  • The lowest numbers of shoppers to date expect food prices to get much more expensive over the next 12 months – 21%, down from 33% a year ago

Joanne Denney-Finch, chief executive, IGD, said, “While some of these changes are slight, they do represent a shift in shopper sentiment that should be widely welcomed. A growing number of shoppers seem to believe that the worst is behind them. They have adapted to the new economic reality and are aware that UK inflation may have peaked. Rising food, fuel and utility prices are the main factors that shoppers fear will make them worse off in the future, so good news in this area is helping improve shopper confidence.

The economic environment remains challenging and we expect 2012 to be a rollercoaster ride for many shoppers. However, with more people becoming used to the way things are, they are focusing again on values, with 34% saying that quality is extremely important when choosing where to shop for food and groceries – the highest level for more than a year.”

 

Back to the future with Justin King

Sainsbury’s chief executive, Justin King gave the City Food Lecture at the Guildhall in London and said, “Much has changed over the last few decades. Austerity measures have influenced the behaviour of households and we have seen the return of what we term the "savvy" shopper who manages their weekly and monthly household budgets carefully. Shopping little and often, making lists, cooking more, wasting less and often shopping locally, just like our parents and grandparents used to do. We are seeing coupon usage increasing too. Even the most well-off shopper wants to get a bargain and doesn't mind who knows it.

However, at the same time, customers have not neglected their values. They want to buy products that offer value for money, quality and high ethical standards. We are seeing more shopping on foot and this helps consumers to re-connect with their communities. So, yes we are seeing a return to some old-fashioned shopping and retailers are tapping into this investing in skills, service and jobs, building stores more locally.

But this time it's different. 'Back to the future' if you like, loyalty cards, smartphones, and the internet enable us to have a more personal relationship than perhaps has existed for a generation.”

 

BRC calls for business rates to fall to mirror inflation

The British Retail Consortium (BRC) claims that the recent slowdown in inflation will ease the squeeze on household budgets but still leaves overall costs rising faster than wages.

The Office for National Statistics' official figures show a sharp fall in the Consumer Price Index, down to 3.6% in January from 4.2% in December. The BRC also pointed out that this makes the 5.6% Business Rates rise, planned for April, even harder to justify.

BRC Director General Stephen Robertson said "On its own this isn't going to produce the substantial revival in consumer confidence which retailers and the economy desperately need. But the fall is good news for hard-pressed families who've faced uncomfortably high levels of inflation over the past couple of years. Last year's VAT increase has now fallen out of annual comparisons. That's a major reason for the drop but retailers' discounts and promotions and falls in a number of world commodity prices are also helping. The official rate is now at its lowest for over a year and moving in the right direction,” Robertson went on to say, “"This fall is even clearer evidence of the injustice of basing April's Business Rates rises in England and Scotland on last September's 5.6% Retail Price Index which was a 20 year high. With the Bank of England predicting inflation to fall further, both Governments should sharply reduce that figure to avoid the damage that will be done to jobs and investment.”

 

East Anglia tops disease list

Schmallenberg virus (SBV) has now been identified in samples submitted from 40 farms in the south and east of England, across the counties of Norfolk, Suffolk, Essex, Kent, East Sussex, West Sussex and Hertfordshire. All of the counties where SBV infection has been identified are in the zones recognised as potentially at risk from infected midges being blown across last summer from affected areas in northern mainland Europe.

With the exception of one SBV positive cattle sample from a farm in West Sussex, all of the GB cases of SBV infection have been diagnosed in sheep to date.

Figures correct as at 13 February 2012

 

County

Premises with confirmed infection
(based on clinical signs and virus identification)

 

Sheep

Cattle

Goats

Norfolk

10

0

0

Suffolk

11

0

0

Essex

3

0

0

Kent

6

0

0

East Sussex

6

0

0

Hertfordshire

1

0

0

West Sussex

2

1

0

Total

39

1

0

 

See the VLA website Schmallenberg virus page for background information.

 

Asda's graduation ceremony

130 Asda staff are the first to graduate from the Asda Skills Academy today after completing their City & Guilds apprenticeship programme with the retailer. The inaugural ceremony, which marks the start of National Apprenticeship Week, saw Asda employees come together in Leeds to receive their Level Two and Three City & Guilds qualifications from Asda President and CEO Andy Clarke and Chris Jones, Director General of CEO City & Guilds.

Colleagues graduating from the Asda Skills Academy today have successfully completed 12 modules of study designed to develop their retail knowledge and skills, as well as presented a portfolio of their work to City & Guilds for assessment.

The graduation follows the launch of a report by City & Guilds last week, entitled ‘The Economic Value of Apprenticeships’. The publication illustrates the important role apprenticeships play in expanding the skills base of the retail sector, and their likely impact on securing the long term viability of the UK economy. It reveals that a boost in retail apprenticeships alone is expected to generate up to £64 million for the UK economy by 2020.

Over 4,200 colleagues enrolled on Asda’s apprenticeship programme when the retailer launched its Skills Academy in June 2011 – today’s graduates are amongst the first to complete the programme, which can take up to 12 months.

Chris Jones, CEO and Director-General of City & Guilds said, “Apprenticeships are core to our purpose of enabling people and organisations to develop their skills for personal and economic growth. That’s why we are delighted to have been involved in developing Asda’s apprenticeship programme from the start and are extremely proud to celebrate the achievements of its first graduates. Asda’s Skills Academy is a great boost towards the success of our Million Extra campaign and to apprenticeships overall.” 

New chairman for green veg

At the Brassica Growers’ Association Annual General Meeting held after its biennial conference on 17th January 2012 at the Lincolnshire Showground Mr Matthew Rawson was elected as the new Chairman. Matthew has been involved in brassica production for 12 years, growing sprouts, asparagus, other vegetable crops and arable in the Yorkshire Wolds.

The new Vice Chairman is Mr Stefan Williams of Drysdales and new Board members are Richard Parry, John Sedgwick and David Waring.

The outgoing Chair and Vice Messrs Phillip Effingham and Alistair Ewan respectively were thanked by all members for their considerable time and effort on behalf of the Association over many years. They both remain as active directors on the Board.

The new team have many ideas to take the Association forward including a monthly instead of quarterly newsletter, regional meetings for growers, a new look at the generic Love Your Greens campaign and developing the work from the R&D committee to ensure the industry is maximising its use of Horticultural Development Company funds for the benefit of all those who contribute 

Incentives for Apprenticeships announced

The Prime Minister has announced that an incentive of up to £1,500 will be offered to small businesses when they hire their first apprentice.  Speaking on the second day of National Apprenticeship Week, Mr Cameron also also opened the bidding for a new Employer Ownership pilot, inviting employers in England to apply for up to £250 million of public investment and secure more control over how skills training is designed and delivered.

The incentive payments for small businesses are expected to support up to 40,000 new apprentices over the next year. The government wants the incentive payment to encourage employers with up to 50 employees to take on a young apprentice aged between 16-24 for the first time.

An initial payment will be made two months after the individual has started their apprenticeship and the balance will be paid after the apprenticeship has been completed and the trainee has progressed into sustainable employment. Initial information is available on the National Apprenticeship Service website, but the NFU will provide full details on this to members once further information has been announced.

Last year saw a record number of apprenticeship starts, with government figures showing numbers have risen across all age ranges and levels of training across the apprenticeship programme. Provisional statistics suggest apprenticeship starts for academic year 2010/2011 have risen by more than 50% across all business sectors, compared with final figures from 2009/2010. The upward trend also applies to English apprenticeship starts in agricultural crops and livestock over the past few years, with 440 starts in 2008/09 increasing to 730 in 2009/2010. There were 78 starts in 2010/11.  

Food inflation falls

According to the latest BRC-Nielsen shop price index overall shop price inflation fell to 1.4% in January 2012 from 1.7% in December. Food inflation fell to 3.7% from 4.2% in December. Non-food inflation fell to zero from 0.3% in December.

Mike Watkins, Senior Manager, Retailer Services, Nielsen said, "Shoppers are indicating that they still need to economise on spending in 2012. With retail sales after Christmas off to a slow start, food retailers in particular continued to offer savings in January with price cuts and promotions on everyday items being used across the industry. These initiatives as well as the underlying slowing of inflation and the annualisation of the VAT increase, are bringing shop prices down and closer to the historical levels we have seen over the last few years.”

Stephen Robertson, British Retail Consortium Director General, said, "With the impact of the 2011 VAT rise finally gone from annual comparisons these figures show how retailers are holding down prices for customers despite a range of upward pressures. Even though retailers are facing higher transport and property costs, overall non-food prices are exactly the same as a year ago. Within that, clothing, furniture and electricals were all cheaper than 12 months ago with the price of electrical goods falling at its fastest rate for three years. Food price inflation continues to come down and is now the lowest it's been since July 2010 thanks to discounting and cheaper commodity costs working through.” 

British Sugar supports Academy Excellence Awards

British Sugar is sponsoring the Technology prize for the 2012 Academy Excellence Awards again. The business will provide a one week internship for the winner and runner up at its Wissington bio-refinery near Downham Market in Norfolk.  Wissington is the largest beet sugar factory in the world, the most efficient in Europe and produces over 400,000 tonnes of sugar annually.

The Technology prize winner and runner up will learn about British Sugar's use of technology to transform sugar beet into a myriad of sustainable products.  After meeting with the Group Chief Executive, they will follow the 'homegrown sugar story'; from beet harvesting, to sugar manfacture, to the production of co-products.  They will learn about the myths surrounding sugar and its use in food manufacture.  At the end of the week, they will share their thoughts with British Sugar's senior team on how manufacturing can be made more appealing to young people.

Last year's Technology prize winner, Sam Exton, and runner up, Ambi Ubhie, had a terrific week's internship with British Sugar.  "Nothing can beat the hands-on experience that Ambi and I had," said Sam.  "British Sugar, and the creation of those simple sugar granules found in every home in the UK, is far more complicated and scientific than I had ever given credit for.  This past week has opened my eyes up to the world of British manufacturing and I can see definite career opportunities for anyone with an interest in science and technology; it is an amazing company!"

Dr. Mark Carr, Group Chief Executive of AB Sugar, British Sugar's parent company, said, "We're really please to be sponsoring the Academy Excellence Awards in its second year.  This is a great opportunity for us to inspire young people to think about the changing world of advanced and sustainable manufacturing; and the possible opportunities available to them in this field in the future.  The team thoroughly enjoyed hosting Sam and Ambi last year, and we're looking forward to meeting this year's winners.  Good luck to all students entering the Technology Award!"

Read Sam and Ambi's full account of their week with British Sugar - and get a taster for what the 2012 Academy Excellence Awards Technology prize winner and runner up will experience - by clicking here.   

Norfolk firm wins award

Award-winning Norfolk business woman Claire Martinsen has won another top prize. Claire, founder of Breckland Orchard, the Watton-based soft drinks company, has beaten off rivals for the title of the FoodBev 2012 Best Social Media Campaign.

Her use of blogging, Facebook and Twitter to market her business convinced the judges she deserved the international award. FoodBev monitors global trends and innovation in food and drink, covering producers ranging from major corporations and brands to small start-up companies.

“Claire’s passion for her business shines through, and while also finding time for Facebook and Twitter, it’s the Breckland Orchard blog that provides the most fascinating insight into the ups and downs of running a small business,” was among the judges’ comments. In 2011 Claire won the East of England Businesswomen Start Up of the Year, adding to the list of other awards she’s clinched since starting Breckland Orchard in 2009.

“I’m absolutely thrilled to have been recognised for my use of social media,” she said. “ I work hard at it and write it all myself, and I feel a bit like David, having beaten off the Goliaths of much bigger, global companies and brands.”

Sales of Breckland Orchard sparkling drinks – known as Posh Pop – are continuing to grow, with new customers across the UK as well as export contracts 

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Have you claimed your R & D tax credit from HMRC?

Do you want a tax refund from HMRC?

Has your business been a UK Limited Company for 12 months?

Is your company managing PAYE and making National Insurance Contributions?

Have you spent money and time on developing innovative products and manufacturing processes, or software and IT solutions within your business? Want to see a case study?

If you answered yes to these four questions then read on.....

You might not think you‘re doing Research and Development, but 95% of the companies we meet are eligible for the R&D Tax Credit scheme. Yes, that means you get money back from the HMRC for expenditure you have already made.

This is not peanuts and it's a scheme that thousands of UK firms have used. Don't miss out!

The average Government Research and Development (R&D) Tax Credit Claim for small and medium sized businesses (SME's) is approximately £40,000 per accounting period for each of the past two years. 

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NEWS HEADLINES FOR THE LAST 7 DAYS

    

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Drought summit

Footfall rises but High St is "bleak"

LINKFresh wins top meat account

East Anglia tops disease list

Retail sales jump

Fall in fresh produce consumption needs to be addressed

Shoppers look on the bright side

BRC calls for business rates to fall to mirror inflation

Back to the Future with Justin King 

What the weekend papers said about food & drink   

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