111018 GG TOUR2011 Atlanta Hugh Mowat Lo

EXPORT MARKETS - HUGH MOWAT, MARKS & SPENCER, USA

GLOBALG.A.P. TOUR2011 18 October Atlanta, GA, USA

© GLOBALG.A.P Secretariat |

Hugh Mowat Marks & Spencer Plc, UK

Sales Potential




Produce – media issues USA Listeria - melons

Germany E.coli – Spanish cucumbers . . . No it was the beansprouts USA Ecoli – spinach 2006

Costa Rica Pesticides/ workers conditions Spain Counterfeit Pesticides - peppers

Ireland Workers rights - mushroom

Italy Workers rights – citrus USA Salmonella – tomatoes

USA Botulinum – carrot juice UK Workers pay – strawberries

UK Polytunnels - strawberries

Kenya Water extraction – flowers USA E.coli 0157 – salad onions

UK Salmonella - Lettuce Israel/ Thailand Salmonella in Herbs (HPA)

Honduras (USA) Salmonella – Melons

Columbia Workers rights - Flowers USA Salmonella – tomatoes or peppers?

Italy Salmonella – leaf raw material (lizards)

Why bother?




Case Study: E.coli

• E.Coli outbreak in Northern Germany – 2011

• Fatality reported in press

• Identified as Spanish cucumbers

• Fatalities rose to 35

• Cucumber accusation withdrawn

• Price of a cucumber fell to 0.09

• Identified as beans-sprouts

• Egyptian beans banned from EU

Case study: herbs




The one that never happened

Case study: watercress

Case study: potatoes




Labour

Black Widow Spider




Risk Assessment

• Food Safety

• Labour

• Pesticides

• Environment




Workers on farm • Dependant on seasonal temporary labour force to

respond to daily peaks and troughs

• Manual work

• Now predominantly migrant Labour

• Direct recruitment or Labour providers

• Accommodation

• Traditional practices difficult to monitor

• Limited HR resource

• Maintaining standards with static market prices




Why bother focus on

workers ? • Avoid legal issues/ ingtervention

• Increased productivity

• Clear communication channels &

team work

• Effective planning for peaks

• Reduced accidents

• Higher retention levels

• Less absenteeism

• Increased environmental

performance




Trust – Field to Fork 1 M&S Produce is currently sourced from over 10,000 growers in 58 countries

We follow the Sun – which means going to the Southern hemisphere in winter.

‘Field to Fork’ standard Field to Fork is a production standard exclusive to M&S

100% visibility of supplybase

World leading standard (using Global GAP as the foundation)

Protects supplychain from food safety/ pesticide/ labour issues

Performance management/ benchmarking

Guarantees grower contact (new for some)

Anticipates future issues

Will enable unique marketing claims




Food Safety

Category 1 – eaten raw

no protective skin removed before eating

significant risk or history of pathogen contamination


Either no protective skin removed before eating

Or some risk or history of pathogen contamination


Either have a protective skin that is removed before eating

Or grow clear of the ground

Or have no history of pathogen contamination

Category 4 – always cooked

Risk Assessment –

customer use

Ready to Eat

Ready to Cook

Ready to Re-heat

Wash before Use




Metrics Supplier Report

Essential Questions

This information will help us drive change




Trending data

+ pivot table

Competition for resources

In 20 yrs there will be 9bn people to feed…




Oil supplies will tighten, increasing prices…

Global Fibre Prices




Rising Energy & Water Prices

Source: Government statistics




Achieved 95

On track to deliver 77

Issues in achieving 7

On-hold 1

Plan A progress to date

Carbon

emissions

Carbon

emissions per sq ft

Fuel

efficiency

Sustainable

Timber

Packaging

Reduction




Grocery bags

£80m

£70m

£60m

£50m

£40m

£30m

£20m

£10m

£0m

-£10m

-£20m

-£30m

-£40m

2007/08 2008/09 2009/10 2010/11 Future

Performance – Business Case




Strategic move in line with what we touched on last year.. Move towards

the consumer

Picture tear drop trailer

Picture carbon neutral cocolate

Carbon

Reclaim Heat from

Fridges

to Heat Water

and Building

Doors on chilled

cabinets




Employees

166 steps but only 22

add customer value !!

Lean manufacturing




The model




• Freight reduction (air > sea)

• Energy saving

• Renewable Energy generation

• Water reduction/ storage

• International Water Standards

• Packaging reduction

• Increased life/ reduced waste

• Pesticide reduction

• Animal welfare vs intensive

• Feed conversion rates

M&S Innovation Fund – finding solutions

Five things to protect your market position

1. Get an export passport (Global GAP)

2. Risk Assessment

3. Board room buy-in

4. Bite sized chunks

5. Think Customer




Thank you for listening

111018 GG TOUR2011 Atlanta Hugh Mowat Lo

Documents

Transcript of 111018 GG TOUR2011 Atlanta Hugh Mowat Lo