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Morrisons takes step into the farming sector
Supermarket giant Morrisons is going into farming – and wants more "supply chain dialogue" with farmers.
The Yorkshire-based company has gone into partnership with trustees of the Dumfries House Estate in east Ayrshire, Scotland, to use 700 acres of land for farming and farming research.
They will rear traditional cattle and sheep, starting with Shorthorns and Aberdeen Angus, and grow crops for feed. Experiments in animal feeding, housing and welfare, are under discussion with the Scottish Agricultural College. And a similar venture is planned in the south east of England.
Jim McLaren, president of the Scottish NFU, said: "It is extremely good news for the agriculture industry that one of the country's leading retailers is willing to engage at this level."
At the same time, Morrisons announced the launch of 'Morrisons Farmer Groups' for "supply chain dialogue... to encourage working across the supply chain".
The first groups, for dairy, beef, poultry and egg farmers, are now being set up, through Morrisons suppliers, and the company expects to do the same later for lamb and pork producers and the crop sector.
As well as dialogue, it promises "investment in applied farm research, organised through Morrisons Farmers Groups and working in partnership with leading agricultural colleges".
The company statement added: "The first research project, reviewing the cross-breeding of dairy cattle, is already underway, with results to be published in August." The Morrisons press office could not say any more about this project.
The commitment to producer groups by the fourth largest of the Big Five supermarkets is seen as acknowledgement of growing concern for "food security".
Dairy farmers were the first to be included in discussions about the knock-on effects of supermarket price wars, which threatened to put them out of business a few years ago. Now, although they all still claim to be walking a tightrope, those with contracts to supply particular supermarkets are generally better off than those selling into the pool.
There has been some acknowledgement of other producer groups but the range of the Morrisons commitment is new.
Peter Kendall, president of the National Farmers Union, said: "We see this as a significant commitment to the future of the industry and the future supply of quality British food."
The 'Morrisons Farming Programme' also promises a new website for livestock farmers to trace carcase data, to check if they are getting the best quality ratings and best prices. It will start with beef.
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Friday 25 May 2012
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