Membership

Supply Chain Partnerships – they’re a win-win

18 June, 2019

The AF Group have published their new report outlining the attitude and actions needed for successful and fruitful supply chain partnerships for British farmers.

“Whilst it’s true that UK agriculture faces a huge amount of uncertainty there are actions farmers can take to increase productivity and efficiency,” comments AF’s Chief Executive Jon Duffy. “What’s needed is a change of perspective. By investing in robust supply chain relationships and partnerships, British farmers can still – despite turbulent times – position themselves to grow their businesses.”

Agriculture in the UK is in a state of uncertainty, and many British farmers are focusing on “surviving” rather than “thriving”. Despite the turbulent times we live in – exemplified by the chaotic Brexit discussion – growth and prosperity are possible with a shift in perspective.

Productivity continues to be a hindrance for individual businesses, with growth and outreach always eventually hitting a ceiling. Supply chain partnerships offer more than greater resources: they offer scope for more intricate solutions. Going beyond the obvious benefits of a supply chain partnership like improved pricing, they can help establish a farm as a strong business in its own right. Farms that move beyond a simple back and forth transactional relationship open themselves up to achieve far greater results.

To accomplish this does require a step change in thinking; British farming has a long and proud tradition, but it’s usually an individualistic one. While this is valid – even praiseworthy – entering into a partnership mindset does not mean forsaking one’s own identity. Ultimately both parties in a partnership stand to benefit, and a farmer’s position can be greatly enhanced without needing to compromise on the things that matter. This has become an even more pressing issue due to Brexit, as was noted by Johnathon Marshall, Partner at business advisors PwC, who advised the following as a vital action in light of Brexit: “My recommendation for a “no regrets” decision that all businesses can make now is to know your supply chain.”

Minette Batters – President of the NFU – recently offered a passionate reminder of the need for innovation in the face of Brexit in her speech to the 2019 Norfolk Farmer’s Conference:

“We live in extraordinary times. Never before has the business of farming faced such uncertainty… This is a time of enormous risk, but it’s also about change and opportunity. It’s right and proper that we plan for our future.”

“Stronger links in the supply chain are possible without sacrificing individual business identity,” adds Mr Duffy. “British agriculture is in a changing state, but that does not necessarily have to be a bad thing. Farmers who consider their position and forge new partnerships in the supply chain to strengthen their position will ultimately place themselves better than those who don’t.”