Prospering in dismal times is an achievement common to all the winners of this year's NFU President's Awards. Julian Hunt reports
A business that can boast an average annual growth rate of 50% has every right to be pleased with its performance. But when that business is making a success out of operating in the farming sector, it has more reason than most to be pleased. And this week the owner of that business had another cause to smile. Step forward John Davies of S&A Produce (UK) of Brook Farm, Hereford, who has been named the NFU's Farming Entrepreneur of the Year.
He says: "In 1994, I operated a 250-acre traditional family farming business growing combinable arable crops and potatoes, concentrating on production and governed by traditional rotations and subsidies. The return on investment was poor and did not allow any real growth. Concentrating on production also involved being controlled by every one else who simply wanted my produce at their prices."
But after study tours to the continent and the US plus a spell working in Canada Davies knew he needed to take his operation in a new direction. He began to think of himself more as a businessman, focusing the operation on a narrow range of products in the hope of maximising profitability.
"We now operate a business with an annual throughput of 30,000 tonnes of potatoes and 2,000 tonnes of strawberries destined for supermarket shelves, having control of all operations from growing to marketing. This transition from concentrating on production to concentrating on customer needs requires a new mindset. But it has been the hallmark of our success."
The figures speak for themselves. In 1994, Davies was turning over £1.1m a year; today that figure has broken through the £13m barrier. His business employs more than 150 people on a full time basis, 50 part timers and 750 seasonal workers. Davies adds: "Our business is managed so it is flexible and ready to exploit any niche that presents itself. It's also a business that continually searches for ways of adding value to products. We are not in love with the product and are willing to change to any demand that may come our way. We are a fully autonomous unit that grows, packs and delivers its products to the point of sale, enabling us to exploit the market demand in terms of volume and specification."
And he is still looking to grow S&A at an average annual rate of 20% for the next five years a business plan that he describes as awesome and one requiring high entrepreneurial skills. "To deliver the growth and increased profit, we are carrying out trials and limited production in strategically located centres in Scotland, Northumberland, Spain, Egypt and Poland for the expansion of the strawberry enterprise. These centres are selected because of climatic conditions and availability of harvesting labour. We are at the same time looking at alternative investment markets by expanding our property portfolio and growing plants for other users."
Having multilingual staff helps the company exploit international trade opportunities, whether it's the ongoing strawberry trials or buying fruit from the Netherlands to extend the trading year.
Research and development plays an important role at S&A with a dedicated team looking to employ the best industry practices. The team has also come up with ideas of its own from tunnel erecting machines to high bed strawberry growing systems all of which have improved efficiencies on the farm. Another key ingredient to S&A's success is good horticultural practices, says Davies, which is why it is a member of the Farm Assured Produce scheme and Tesco's Nature's Choice scheme, and holds a higher level CMi annual inspection certificate.
It was this attention to detail, combined with financial success, that impressed the judges at the NFU President's Awards. And it's the reason why Davies was a worthy winner of the Farming Entrepreneur of the Year award, which was sponsored by Asda and The Grocer.
However, it was a close call between Davies and the runner-up in this category Peter Barfoot, who runs Barfoots of Botley near Bognor Regis. Barfoot's business has evolved from a "typical strawberry growing unit" into a highly successful, vertically integrated exotic vegetables business. The company's success can be attributed to a number of things, not least its decision to grow unusual products, use of innovative farming practices, its willingness to embrace the idea of full transparency, and use of overseas facilities to create all year round marketing.
"Barfoots has established a link in every part of the food chain and this has allowed us to become a competitive, thriving business in today's environment," says Barfoot.
This ability to prosper during such a difficult time for the farming sector is something that unites all the winner's of this year's awards. As NFU president Ben Gill says: "What makes the entrants' achievements so outstanding is that they have succeeded at such a bleak time for the industry. It demonstrates the determination, talent and contribution Britain's farmers make in so many ways to the countryside and the economy."
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