Monday, 28 March 2011

Food for thought to UK animal feed industry

This item was commissioned originally and first published by Feed Compounder magazine (March 2011), thought the views expressed are exclusively the author's.


Sad day and bad day for food security when Nocton knocked on the head
Although there didn’t actually appear to be much of a upside for cake firms if it had gone ahead, I can’t help feeling downbeat at the news that the Nocton dairy project in Lincolnshire has been knocked on the head.
The timing is particularly ironic, coming hot on the heels of the World Economic Forum’s report ‘Realizing a New Vision for Agriculture: A roadmap for stakeholders’, in which the executive summary states: “The Time to Act Is Now: Committing to 20/20/20. The New Vision for Agriculture strives to harness the power of agriculture to drive food security, environmental sustainability and economic opportunity. Its aspirations are high, not least of which are to increase production by 20% while decreasing emissions by 20% and reducing the prevalence of rural poverty by 20% every decade.” It’s a good bet that Nocton would have ticked at least the first two of these boxes, but now we’ll never know.
On the other hand, maybe I’m misguided. Perhaps we should be rejoicing that a beacon unit the size of 29 typical customers, which probably wouldn’t use a single nut of dairy cake or even one teatcup of blend, is now not going to demonstrate to other milk producers how a cake firm is not longer a necessary aspect of their business model. And at least they won’t be buying any TMR machines, nor showing off to others how to make best use of them. Peevish? Of course, but clouds and silver linings and all that… yet still I’m downbeat.
Eggs teach delicious lesson about unknown unknowns
More cheerily, some genuine good news could be found in the Daily Hate Mail recently that eggs really are the new superfood (as mentioned from time to time before in this feature, dating back to November 2005).[1] Even better news now, which is what justifies re-visiting the topic, is that it isn’t just our understanding of eggs’ nutritional properties that have improved, but that “eggs have become more nutritious over the past decade”, says the DHM.
For what appears to be a clever trick of smoke and mirrors, the British egg industry should be applauded for using genuinely new data from the renowned United States Department of Agriculture (USDA) to portray eggs here as “healthier than ever, say experts” as the DHM sub-heading puts it.
According to an American Egg Board press release distributed by the PR Newswire service, the USDA’s Agricultural Research Service (ARS) has reviewed the nutrient composition of standard large eggs and found the cholesterol level to be 14% lower than when measured previously in 2002.[2] Over the same period, the vitamin D component has risen by 64%.
An explanation suggested by the AEB is that reduced cholesterol in eggs could be related to better poultry nutrition. In the Daily Mail report, deputy chairman of the British Egg Industry Council (BEIC) Andrew Joret endorses this, saying “we believe the reduction is due to changes in the feeds used in British plants since the Nineties when the use of bone meal was banned.” In nit-picking frame of mind, I have not managed to find a direct link between the USDA findings and either British eggs or the bone meal hypothesis, hence the smoke and mirrors jibe. But as a PR practitioner for some of the time, I plead guilty to breaching the Holy Bible’s ‘let he without sin cast the first stone’ (St John, 8:7). Sorry.
Giving credit where it’s due, the British egg industry is clearly doing a lot of things right. In the last quarter of 2010, sales rose by 5% compared with 2009. In the whole of 2010, the egg market grew by 1.6% in volume and 2.6% in value, turning around “decades of year-on-year declines”, according to the BEIC.[3] It says both value and volume growth are being driven by free range eggs, while caged egg sales have also stabilised. In such circumstances, we can forgive BEIC chief executive Mark Williams for allowing an oleaginous PR man (it wasn’t me, honest) to make up this nice example of corporate puff: “The egg industry is a shining example of a sector that has not accepted its lot, but has taken control of its future.” And so say all of us. Indeed, note to CAP reform negotiators: Surely it is no coincidence that the egg sector has always had to stand on its own two feet and compete in a free market.
Meanwhile, how many of us foresaw at the time of the meat and bone meal (MBM) withdrawal from layer diets that such a potentially monumental gain might arise? The importance of this lesson right now, of course, is that high raw material prices put formulations in the spotlight and make ways of reducing costs particularly attractive. But beware the law of unintended, unforeseen or even unforeseeable consequences, which warns that “an intervention in a complex system always creates unanticipated and often undesirable outcomes. Akin to Murphy's law, it is commonly used as a wry or humorous warning against the hubristic belief that humans can fully control the world around them.”[4]
The man credited with inventing this law, sociologist Robert K Merton, listed five possible causes of unanticipated consequences:
§         Ignorance (it is impossible to anticipate everything, thereby leading to incomplete analysis)
§         Error (incorrect analysis of the problem or following habits that worked in the past but may not apply to the current situation)
§         Immediate interests, which may override long-term interests
§         Basic values may require or prohibit certain actions even if the long-term result might be unfavourable (these long-term consequences may eventually cause changes in basic values)
§         Self-defeating prophecy (fear of some consequence drives people to find solutions before the problem occurs, thus the non-occurrence of the problem is unanticipated).
In addition to these, it is said there is also something called ‘the relevance paradox’, in which decision makers think they know their areas of ignorance about an issue, and obtain information to address it; but they neglect other areas of ignorance, because an absence of information makes its relevance not obvious. US Defence Secretary Donald Rumsfeld once put this famously and rather more succinctly as “unknown unknowns”.[5] (See reference for the longer quote, it’s exquisite).
Then, just when I’m running out of material, into my inbox drops the excellent AgriTrade News weekly e-newsletter. It reports that prominent British MP Neil Parish, a farmer and former chair of the European Parliament's Agriculture committee, has said Europe should review the post-BSE ban on meat and bonemeal (MBM), to be fair with the proviso that there should be no intra-species use of the material.[6]
He was speaking at the National Office of Animal Health's Feeding the World conference in London and, with such delicious timing, called the continuing MBM ban “a huge waste of protein”. Of course, the unfortunate Mr Parish wasn’t to know that he ought to know, but didn’t, how a 14% reduction in the cholesterol content of eggs and a 64% increase in bone-protecting, osteoporosis-preventing vitamin D was being linked to the withdrawal of MBM from poultry rations. If this was a conversation between us, the next gambit would be, “So who’s going to tell the BEIC, you or me?” But as it’s not, I’ll probably beat you to it.
Back down to earth in the day-to-day decision making of a busy UK feed mill, one practical upshot from all this is how it demonstrates the importance of being extra vigilant for unknown unknowns when considering whether to adopt new or different feed ingredients. Regardless of whether New Ingredient X is a macro- or micro-ingredient, maybe a bit more digging than usual into the supplier’s or manufacturer’s R&D is warranted, just to make sure that they’ve looked hard enough and long enough for unknown unknowns before bringing it to market. Otherwise, how do you differentiate between a genuine nutritional breakthrough and the next variant of snake oil?
Hats off to British egg industry
Inspired by all this good news to enjoy a two-egg omelette for breakfast this morning, I am grateful that a bare cupboard prompted a quick visit to the local Co-op where evidence of the egg industry’s innovative marketing was on full view. In plain grey ‘simply value’ packaging were 10 Class A ‘free range eggs of different sizes’ for £1.99. Yes please.
Or you could have a very pretty little pack of four organic eggs (bottom left in picture), for £1.25. There were also Happy Eggs, an Oakland brand, and the bright green packs with a prominent Union Flag on the top containing the Co-op brand of graded eggs in medium and large sizes.
Among even this moderate amount of choice was a variety of prices, quantities, sizes and brands of the product. Cynics might say this is a ‘confuse and rule’ marketing policy because it makes it impossible for shoppers to fix an easy pence-per-egg benchmark in their heads. But contrast this with the shambles that is milk marketing, which helps us all understand and remember four-pints-for-99p.
References

[1] Sophie Borland, 14 Feb 2011. Scramble back to eggs! Daily Mail.
[2] American Egg Board, 8 Feb 2011. New study shows large eggs are 14 percent lower in cholesterol & 64 percent higher in vitamin D. PR Newswire: http://www.prnewswire.com/news-releases/eggs-are-now-naturally-lower-in-cholesterol-115547959.html viewed 16 Feb 2011.
[3] BEIC, viewed 16 Feb 2011. Egg sales rocket. http://www.nutritionandeggs.co.uk/press_releases/view/321.
[5] http://en.wikipedia.org/wiki/Unknown_unknowns, viewed 16 Feb 2011: “……statement was made by Rumsfeld on February 12, 2002 at a press briefing where he addressed the absence of evidence linking the government of Iraq with the supply of weapons of mass destruction to terrorist groups. ‘[T]here are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns – the ones we don't know we don't know.’ “
[6] AgriTrade News, 18 Feb 2011. MEP calls for more GM protein and MBM in Europe. Vol 4, No 6.

Friday, 25 March 2011

J Sainsbury's dis-service to Cumberland sausages


7 March 2011
 (no reply as yet 25-3-11)
The Sausage Buyer
Sainsbury’s Supermarkets
London
EC1N 2HT


Dear Sainsbury’s
A few days ago from your Shrewsbury store, I bought a pack of your ‘be good to yourself’ extra lean Cumberland sausages. Having now cooked and attempted to eat them, I have to say that their taste and texture couldn’t be much further away from the genuine article.
Please correct me if I’m wrong, but my understanding is that Cumberland sausages should contain roughly-minced pork so that the meat retains its texture when cooked, whereas your sausage filling is more like the consistency of a paté. Cumberland sausages should be rather more spicy than other sausages, with sage usually predominating, whereas yours have little taste of anything. Cumberland sausages should contain more than 80% pork, about half of which should carry some integral fat (e.g. belly pork), whereas yours contain only 70% pork and the texture suggests that it is mechanically recovered meat. Authentic Cumberland sausage mix can have a little water added for the purpose of lubricating its insertion into the skin, whereas yours have water as the second listed ingredient after pork, suggesting (this is a guess) that its inclusion rate is more than 10%, which in turn suggests to me that it’s being used as a cheap bulking agent.
Such is the high quality of proper Cumberland sausage that it can be served with pride as a dinner party main course, perhaps with mustard mashed potato, sautéd shredded spring cabbage, and an onion marmalade relish. I’m sorry, but aside from your product’s striking lack of authenticity, the eating quality was non-existent and I wouldn’t feed it to the family poodle. Indeed, this product exemplifies much that is wrong with some foods being sold in British supermarkets. In addition to being unnecessarily overly-manufactured, you’re actually misleading customers because a Cumberland sausages with ‘less than 3% fat’ is a contradiction in terms. It’s like offering Custard Creams with less than 3% ‘cream’. With so little fat or cream, the product simply cannot be a Cumberland sausage or Custard Cream respectively.
When reading on the pack that ‘We’re sure you’ll love this product’ I’m left wondering who at Sainsury’s is accountable for that statement. Perhaps you could serve these Cumberland sausages to Justin King for lunch and then ask if he’ll sign it off. I have, of course, followed your advice on the pack about returning the product for a full refund. But that really isn’t the point, as I’m sure you gather.
Best wishes.
Yours faithfully

Thursday, 24 March 2011

Farmers' milk price wilderness - no easy way out, but not impossible either


21 January 2011
Dear Farmers Guardian (offered but not published...a bit on the long side methinks)
Readers prepared to study FG (21 Jan) thoughtfully will find it contains a solution to our milk marketing and low pricing problems. On pages 36 and 37 (Doorstep delivery is cornerstone...), the power of a farmer-owned brand for which customers develop an affection and loyalty is ably demonstrated by the Tweddle siblings and their Acorn Dairy enterprise. Earlier in the paper, on your letters page, C Marshall from Harrogate identifies with pin-point accuracy that allowing or, worse still, helping the development of dedicated milk supply groups to supermarkets and processors has handed a spectacular divide-and-rule victory over milk producers to milk buyers. Rather than championing these divisive groups, should not the combined power of the NFU, NFUS, TFA, CLBA, FFA and farmer-owned co-ops be working together on a solution?
Without milk, no processor has a business. In contrast, a guaranteed supply of milk together with a range of brands under which it is sold will give a processor—either farmer-owned or otherwise—a decent chance of some leverage over the price they earn for milk. For supermarkets, the need for customers to buy fresh milk every few days is a powerful vector in persuading shoppers to return more frequently that they otherwise would. That's why milk is discounted, not because supermarkets don't value it. On the contrary, their need for fresh milk is fundamental to their business model, and if it's unbranded or their own brand so much the better because that allows them to play one supplier off against another. But if the availability of unbranded milk was restricted, or ideally eliminated, they'd have no choice but stock branded milks, among which the strongest brands (like Muller yogurts, perhaps) would earn the best prices for their suppliers.
Clearly, this strategy would be very demanding for those involved at the dairy farming end of things. It would require unprecedented vision, unity and persuasiveness among its leaders; and an equally unprecedented level of intelligent analysis and decision-making, both individually and collectively, by dairy farmers. But we're not in today's situation by accident; it's deserved as a result of past decisions, actions or inaction that have allowed negotiating power to be taken away from farmers. No one is going to turn back the clock, or make retailers and processors behave 'more fairly' as we see it, no matter how often and persuasively our leaders call for it.
Instead, improving the ex-farm milk price needs a new and clear objective: to restore farmers' control over their own product, right through to consumers. It needs a new strategy: By making milk available to retailers solely via farmer-owned channels (albeit several competing ones) in the form of farmer-owned brands. And it needs sound tactics and implementation: Effective presentation and persuasion by dairy farmers' leaders; loyalty to those leaders by individual dairy farmers; co-ordinated mass migration of supply contracts to farmer-owned businesses; excellent supply chain negotiation by those businesses from a new position of strength; and please, an end to futile public pleas for a fair share of the retail price.
Otherwise, most liquid milk, with the noble, notable and minority exceptions of innovative farmers' brands like Acorn, Bowland Fresh and Jess's (all reported upon at some time by FG), will continue to be anonymous generic white stuff in plastic cartons, sold at give-away prices by retailers as an important part, to them, of their customer retention strategies. For farmers to be treated as play-makers not pawns, they have to act accordingly. The choice, dear reader, is yours.
Yours sincerely
Phil Christopher