updateJune 2015

New vision for SAOS and our co-ops

Member co-ops’ news and updates

Next Generation initiative updatesIn this issue:

News from, and for, Scotland’s farmer co-ops

George Lawrie took over from Andrew Peddie as Chairman of SAOS at the AGM and members’ forum on 20th May. The change of chair takes place at a time when SAOS Council and Members are taking stock of the multiple change factors impacting the farming, food and drink industries, to develop a new vision for co-ops and SAOS in the years ahead.

An acute awareness that the competitive environment is changing was evident amongst the 50 co-op leaders who convened at Huntingtower Hotel. When challenged to deliver their vision of farming and their co-ops in 2025 some clear themes emerged that set a ‘direction of travel’ for co-ops and SAOS:

• Market-led: co-ops will become better informed and equipped to respond to faster changing market circumstances and opportunities. The result will be more competitive co-ops delivering more value for members, supply chain partners and consumers. Co-ops will be essential and responsive partners throughout Scotland’s food and drink industry, enabling the entire industry to deliver strategic objectives.

• Farmer focussed: co-ops will attain greater scale and market influence through a combination of recruitment, collaboration and

joint venture, which may be international. In so doing, they will be distinctively farmer focussed in their governance, generating greater farmer participation through plans and achievements that deliver opportunities and value back to farm, and which appeal to the next generation. This will enable co-ops to be responsible contributors and partners in rural communities.

• Innovative and technology leading: co-ops will become skilled technology translators and adopters introducing knowledge services to give their members a competitive edge. Co-ops will up-skill to utilise research advances, the power of data and new business models that enable them to be efficient, competitive, and environmentally responsible.

James Graham, Chief Executive, commented:“We accept the challenges set out by our members in the vision they have provided us for their co-ops in 2025.

Our next steps in SAOS are to decide the actions we must take to evolve SAOS so that we continue to provide the necessary leadership for their success. Our internal planning process is well underway and we are consulting with a range of farming, food and drink industry stakeholders and the Scottish Government.”

New Chairman and New Vision for SAOS and our Co-ops

Recently appointed SAOS Chairman, George Lawrie, brings to the post a wealth of knowledge and experience in Scottish agriculture and, in particular, a wide range of agri co-ops.

Having studied at Elmwood College, George returned home to the family farm before getting married and first venturing into partnership with his wife in an arable unit in the late ’80s. It was also around this time he was a founder member of Tay Forth Machinery Ring. His involvement with co-ops didn’t stop there and George has been involved with Highland Glen and United Oilseeds over the years and remains a member, and is current Chairman, of Scottish Agronomy. He was previously a member of SAOS Council – in the mid 1990s – when he was also Chairman of SMRA.

Outside the co-op sector, he has been a member of NFU Scotland Board since 2002, initially as Land Use and Environment Committee Chairman and for many years now, as Treasurer. He is also on the main Board of HGCA and worked for ten years with the Scottish Office on Ag Appeals.

George Lawrie brings a wealth of experience to the role of Chairman

George commented: “This is an exciting time to pick up from Andrew Peddie’s success and lead SAOS as agriculture is going through one of its biggest changes in the last 20 years and, with these changes, farm profitability will be under great pressure. These changes will lead to greater co-operation within the industry, with SAOS well placed to facilitate the anticipated growth of the co-op sector.” We are delighted that George has accepted the role of Chairman and we look forward to working more closely with him.

update

SAOS Office Holders Following our AGM in May, here is the updated list of SAOS Board and Council members.

SAOS Board Members:George Lawrie, Chairman (Scottish Agronomy) Gareth Baird (Scott Country Potatoes, GrainCo Scotland, SBP)Nina Clancy, Independent Director (RSABI) – co-optedMark Clark (Grampian Growers)John Hutcheson (GrainCo Scotland, East of Scotland Farmers)David Mitchell (East of Scotland Farmers)Hugh Parker (First Milk)Andrew Peddie (Tay Forth Machinery Ring)Alan Hardie (Patterson Arran) - co-optedJames Graham, Secretary and Chief Executive, SAOS

Additional Council Members:Michael Bayne (Borders Machinery Ring)Richard Butterworth (Scotlean Pigs)Stephen Cameron (Scottish Shellfish Marketing Group)Angus Macfadyen (Argyll Hill Lamb)Richard McMinn (Tarff Valley)David Pate (Ringlink Scotland)Jonathan Robinson (United Farmers)Patrick Stephen (Scottish Pig Producers)Ian Watson (Farm Stock Scotland)Bob Yuill (SAOS Staff)

Co-opted Council Members:Rory Christie (Milk Suppliers Association)Andrew Faichney (East of Scotland Growers)

Co-opted External Council Members:Penny Montgomerie (SAYFC)‘Uel Morton (Quality Meat Scotland)Scott Walker (NFU Scotland)James Withers (Scotland Food & Drink)

SAOS Training and Events - please note the dates of these courses and eventsWhen? Where? Course/Event11th Nov 2015

Huntingtower Hotel, Perth

Co-op Company Secretary workshop SAOS is launching a new Company Secretary workshop this winter. The Secretary has responsibility for communicating good governance practice to the Board, and ensuring the co-op complies with the requirements of co-op law. Within the last year, there have been some changes to the Co-ops UK Governance Code, this workshop provides a great opportunity to update co-op Company Secretaries on these changes, as well as promoting good practice involved in their day to day roles and responsibilities.

19th Nov 2015

Huntingtower Hotel, Perth

Director Development Programme: People Management

25th & 26th Nov 2015

Huntingtower Hotel,Perth

C-MiP (Co-op Management in Practice)New and very popular last year, this course enables participants to build their understanding of co-ops, the issues and challenges. Participants will increase their skills, knowledge, understanding, in turn helping their co-op improve performance. The course helps potential future co-op managers acquire and develop new approaches for leading and managing co-ops. The course also provides a forum to share ideas and experiences between participants from a range of co-ops.

10th Dec2015

Huntingtower Hotel,Perth

Director Development Programme: Collaborative Supply Chains

28th Jan2016

Crieff Hydro Hotel SAOS Annual Members’ Day, Conference and Dinner

2nd Feb2016

Huntingtower Hotel,Perth

Director Development: Co-op Finance

Knowledge Transfer for rural organisationsIn May, a group of 24 delegates representing the main rural organisations in Scotland took part in a ‘round table’ meeting organised by the University of Edinburgh Business School (UEBS) and SAOS. The meeting, at Stirling University, allowed the group to share some of the issues and opportunities concerning effective KT and learning amongst farmers. Presentations were delivered on ‘The Rural Leadership programme from a graduate’s perspective’ (Sheena Howden) and ‘Establishing the Yorkshire Dales farmer network’ (Paul Harper). The final presentation was on ‘Learning and KT in rural co-ops’, where Dr Angela Tregear and Professor Sarah Cooper of UEBS presented the results from their study of four marketing co-ops: Scottish Shellfish Marketing Group, Argyll Hill Lamb, Grampian Growers and East of Scotland Growers, highlighting various factors that influence the types of learning and their effectiveness in these co-ops. It demonstrated the value and the role co-ops play in ensuring members are market-focused, efficient and competitive through sharing experiences and learning, both internally and from external sources. The afternoon breakout sessions looked at sharing experiences and stimulating ideas and discussion on the key barriers to effective KT/learning amongst farmers. Key messages from the day included:• Co-ops have a key role to play in facilitating learning and KT amongst

their members • There is a need to target younger/next generation farmers more• A skilled facilitator plays a key role in the effectiveness of any KT

programme - there is a need to improve the skills of facilitators through training

• Improve the measurement of learning events. Was the objective achieved? Did it make a difference? Too many KT programmes are failing to make the desired impact

• Make better use of new technology to help make learning/KT more effective

• Much ‘well intentioned’ R&D is largely failing the farming community• Further research is required on how farmers learn, the psychology

involved, what works, and role of agents.Dr Angela Tregear commented: “We were delighted at the diversity of stakeholders represented which reflects the high level of interest and importance placed on encouraging learning and enhancing knowledge exchange across the rural sector. We hope to continue to work with SAOS to explore future opportunities for sharing experiences.”For further information please contact jim.booth@saos.coop

update

Cabinet Secretary launches £70m support schemeThe new Food Processing, Marketing and Co-operation (FPMC) grant scheme for food and drink businesses has been launched by Cabinet Secretary, Richard Lochhead.The scheme is now open for capital-related applications and will widen to non-capital and co-operation bids later in 2015.The scheme will plough £70 million into food and drink processing in Scotland as part of the new Scottish Rural Development Programme (SRDP) 2014-2020, which is expected to receive formal EU approval shortly. Mr Lochhead said: “Scotland’s £13.9 billion food and drink growth sector has already rocketed since 2007. Turnover here has shot up 21 per cent compared to growth of 8.6 per cent across the rest of the UK, with Scotland’s massive success fuelled by the unwavering support of the Scottish Government and our agencies. “Under the last FPMC grants scheme the Scottish Government supported 172 projects between 2007 and 2013. Our £47 million investment levered in £114 million private sector funding and safeguarded or created about 8,500 jobs.“I am delighted to be launching the new scheme in Scotland’s Year of Food and Drink, and to have increased funding by 50 per cent which will enable us to invest even more in Scottish food and drink businesses.”Also open for applications is the Rural Development: Knowledge Transfer and Innovation Fund (KTIF), the successor to the Skills Development Scheme, which is worth £12 million over the course of the new SRDP.

Community Food Fund Boost for 24 local food and drink projectsA total of 24 local food and drink initiatives are toasting their success after winning grants totalling £135,820 from the latest round of Community Food Fund (CFF) applications, the largest sum given out so far.As part of the Scottish Government-funded Think Local Project, the CFF supports projects and events around Scotland that encourage people to appreciate and access local produce.The projects, from all over Scotland, range from small-scale, localised projects to larger national initiatives. The successful projects include a festival celebrating 125 years of the Forth Road Bridge and a new Food and Drink trail round the Isles of Mull and Iona.Flora Corbett of the Mull & Iona Food & Drink Trail explains what the funding means to their project:“This grant will enable us to promote the significant range of produce on Mull and Iona to both visitors and locals alike. This is of particular benefit to our many small niche producers, from farmers to chocolatiers, and also our restaurants and cafes who include local produce on their menus.”Scotland’s Cabinet Secretary for Food Richard Lochhead said: “I’m delighted to confirm that more local food and drink initiatives are benefiting from this latest round of Community Food Fund awards. This is the most money ever given out in a single round of CFF awards – taking the total amount of funding awarded to £739,476, distributed among 109 initiatives. “During the Year of Food and Drink, it is particularly essential that people take advantage of our fantastic natural larder in order to achieve our ambition of becoming a Good Food Nation. Congratulations to all initiatives that have received an award in this round.”

The Sourcing for Growth project, linking primary producers and manufacturers of Scottish food and drink, has been extended for another year following business successes.

Cabinet Secretary, Richard Lochhead, who launched the project originally, commented: “I was very keen to see that Scotland did more to link up Scottish food producers with manufacturers interested in sourcing Scottish raw materials. I’m pleased to see that, since its inception, the Sourcing for Growth project has assisted more than 200 Scottish companies to link up with new buyers and suppliers to address their supply chain sourcing issues.

“We have provided additional funding to SAOS to extend the project for a further year, with a particular focus on promoting greater use of Scottish produce in the food service sector.”

Mackay’s, the Arbroath-based makers of marmalades, preserves and curds and Strathmore Foods, owners of the McIntosh brand of ready meals, are just two of the companies to have benefited from the project so far. Both worked with the Sourcing for Growth team to secure a source of Scottish butter for their respective product lines.

William Ferguson, of Strathmore Foods commented: “We already sourced many of our ingredients from Scotland, but there were a number of additional ingredients that we were keen to source from Scotland if we could. We approached the Sourcing for Growth team to see if they could help and they introduced us to Graham’s The Family Dairy, from whom we are now buying our butter.”

Rona Sutherland, of SAOS, who manages the project, explains: “The Sourcing for Growth service is free to use and links businesses from all over Scotland, from new starts to globally-renowned brands. In particular, we look to strengthen product provenance by using raw materials from Scotland. Our aim is to give a boost to businesses all along the supply chain, such as primary producers like the 80 farms who supply milk to Graham’s.”

The recently reworked project website features a range of business tool kits and case studies sharing best practice, as well as more on how the project has helped other companies.

Find out more at www.sourcingforgrowth.co.uk or contact rona.sutherland@saos.coop

Growing Success for Sourcing for Growth

Douglas Watson, who represents SAOS on the project added: “The next round of the CFF is open for applications now. There’s been real enthusiasm for the Fund and it’s a great opportunity for local food and drink initiatives to gain support and funding. Anyone looking to apply for the next round should speak to a member of the Think Local development team.”Find out more about the winning projects and full information on applying at: www.thinklocalscotland.co.uk

update

Co-op Staff forumSAOS set up a new forum last year as part of our Next Generation focus. The idea is to provide co-op staff with tailored training on co-op issues, as well as personal and professional development. The Co-op Staff Forum also benefits the co-ops themselves by providing them with well-trained, enthusiastic, staff members who are more knowledgeable about co-ops and co-operation in general. The idea is that, through the forum, members not only improve their own skills, but also share ideas and issues they face at work with the group. They aim to meet three times per year and the group themselves discuss and agree on which topics they want to be covered. Another benefit of the forum is that the meetings are hosted by the co-ops whose staff are involved, so there is a further learning opportunity through these visits. The forum group comprises staff from Aberdeen Grain, Angus Cereals, ANM, East of Scotland Farmers, Ringlink and Scottish Pig Producers. The initial meeting of the group was hosted by ANM at Thainstone last October. In January, the group met at Aberdeen Grain, where they learned about and discussed the role of the Board in running a co-op, as well as looking at personality types and how these affect the ways that people work. This was followed by a tour of the facilities at Aberdeen Grain including their new Biomass drying plant.The third meeting took place at Scottish Pig Producers where the group worked through the ICA’s seven principles of co-operation and discussed how these were demonstrated within their own co-ops. There was also a session on presentation skills and delivering key messages to large and small groups. Finally, there was a presentation on SPP’s work and operating systems, including their expansion into Northern Ireland and the new abattoir at Brechin.The forum currently running is open to staff from co-ops in the North East. There is potential for a similar group to be formed in the South if there is sufficient demand. If you are interested in taking part or want to know more, please contact stephen.young@saos.coop

Next Generation Focus

SAOS has teamed up with SRUC to raise awareness about agricultural co-ops and co-operation through a competition for students, as part of our Next Generation focus. The competition format is primarily aimed at students who have taken the Advanced Case Studies module, which includes a case study on planning and setting up a new marketing or purchasing co-op. However it was decided that one of this year’s winners should be Claire Zimmerman, who had shown particular interest in agricultural co-operation, having completed her thesis on Montrose grain co-op, Angus Cereals. Claire, along with Katy Downie, both from SRUC Aberdeen, won a trip to the Centre for Co-operative Studies at University College Cork which takes place this month. They will also visit a variety of co-ops over two days, gaining a fascinating insight into different co-operative enterprises. Their tour will take in Dromcolliher Organic College in County Limerick, an initiative to encourage horticultural co-operatives. They will also visit a community farm at Cloughjordan Eco Village, County Tipperary and Dairygold, a dairy and agri-business co-operative, in County Cork. On their second day of visits, they will see the Quay co-op which is a restaurant, café, and organic food workers co-operative, as well as Bandon, another dairy and agri-business co-op.Previous SAOS Chairman and Vice Chairman, Andy Peddie and John Hutcheson, were involved with the decision making process along with the SAOS Next Generation team who attended presentations and viewed a wide variety of co-operative reports. Anna Robertson and Emma Patterson Taylor of SAOS will accompany the winners to Cork. The group will also include two French students currently on an internship with University College Cork and one visiting research fellow from Spain. Anna commented: ”Congratulations and thanks go to all the students who took part. Our intention is for the competition to be run annually and we look forward to furthering links with SRUC and their students, and for awareness of the competition to grow over the coming years.”Anna and Emma will be giving us a report on the trip for the next SAOS Update.

SAOS and SRUC launch student competition to raise co-op awareness

As another Next Generation initiative, Emma Patterson Taylor and Anna Robertson travelled to Paris to be part of the first European Young Co-operators Network meeting in April.The day was arranged to allow young co-operators in Europe to have the opportunity to discuss, network, share ideas and explore opportunities for the future of the co-operative movement. As ICA President, Dame Pauline Green, had previously commented: “I am fed up hearing we need to encourage for the future, we need to encourage now!” Seventy participants from ten countries across Europe, representing thousands of European young people, gathered to be part of a network which will support the growth of a vibrant, strong and innovative network of co-operators.

SAOS staff join European Young Co-operators Network inaugural meeting

The network will continue to meet before European and International Conferences to discuss and develop the actions raised in Paris. The day preceded the Co-operatives Europe General two-day Assembly and comprised roundtable discussions on ‘Public Policies to support co-operatives in Europe’ and ‘Young co-operators: challenges and opportunities’ and a series of interactive workshop sessions. For more information and links go to #eycn on Twitter

update

Since his appointment in April, First Milk’s new CEO, Mike Gallacher (pictured right) has been working with the Board and Executive teams to develop a turnaround plan for First Milk, with the goal of providing a better return to farmer members. The aim is “to develop a business that is focused on providing great service and value to its customers; that is highly efficient; and is relentlessly focused on its core operations. In a competitive global economy, this is the only guarantee of delivering a good milk price to farmers.” As such, First Milk announced a series of changes which are key to delivering that turnaround. These include:• A programme of significant cost reductions across the business that includes proposals for up to 70 job

roles to be removed• A new approach to milk pricing within its milk fields that links local milk prices to the value generated

New Chief Exec for First Milk announces turnaround plan

• The refocus of the business on core UK dairy contracts and customers, supported by dedicated First Milk teamsThese changes were accompanied by the appointment of three externally-recruited senior executives to the First Milk management team. In addition, the company will be appointing a new senior Non-Executive Director to the main Board very shortly, replacing Bob Stott who stepped down at the end of 2014.Additionally, Chairman, Sir Jim Paice, announced an independent review of the governance and commercial learnings from the business’s recent disappointing performance. This review will seek to identify clear recommendations which will be shared with members this summer.The measures announced are the result of a Strategic Review and form part of ongoing actions necessary to return the business to a secure and confident future. Mike Gallacher, CEO, said: “None of these decisions have been taken lightly, but they are necessary steps in the process of rebuilding a secure and stable future for First Milk, its members and its employees. As a team, our aim will be to provide every support for those impacted in the coming months.“First Milk plays an important role in many rural communities across the UK and continues to value the support it has received from all our stakeholders. Our strategy is aimed at continuing to restore the health of First Milk so that we can support those communities through delivering better prices for their milk.“

Construction work at the expanded abattoir in Brechin is on schedule for completion towards the end of this year. This will double the slaughter capacity and create a state of the art processing facility producing Specially Selected and Red Tractor Pork for a wide range of domestic and export customers.Quality Pork Limited (QPL), the joint venture between Scottish Pig Producers, Scotlean Pigs, and Tulip Ltd, the UK subsidiary of Danish Crown, took ownership of the site from AP Jess late last year. The innovative collaboration was brokered by SAOS and is chaired by Roderic Bruce, Scotlean Chairman, who farms near Pitmedden in Aberdeenshire. Scottish Government has provided grant-funding of £2.7m from the Food Processing, Marketing and Collaboration Scheme.The investment will see a new slaughter line, chilling and lorry-wash facilities,

QPL’s Brechin development well underway

enabling a substantial increase in the capacity of the operation. Carcasses from the site will be transported to other Tulip sites for further processing before sale to UK retail and wholesale customers, as well as the growing export market. Routine operations will see slaughtering capacity initially doubled at Brechin, and the new facilities have been designed to enable those numbers to increase even further in the future as the Scottish pig herd expands.Since the closure of VION’s Broxburn plant, a large proportion of the weekly kill has had to head south of the border for processing. A considerable number of weaner pigs born in Scotland are also currently sold to English farmers for finishing - the intention is to redirect these to more local finishing, minimising transport distances and improving welfare. The new Brechin facility will ensure that Scotland has sufficient capacity so that all pigs born in Scotland can be slaughtered in Scotland.Anyone interested in the Brechin abattoir development or the emerging opportunities for pig production in Scotland, should contact Andy McGowan at SPP for further details on: 07469 855370 or andy.mcgowan@scottishpigproducers.co.uk

The collapse of dairy markets and the significant increase in milk volumes during 2014/15 exposed weaknesses in First Milk’s existing milk pricing system. From 1st June 2015, pricing will be based on net commercial returns from First Milk’s manufacturing sites and customers. As part of this, the tightest and closest milk fields have been identified which will be used to service those outlets most effectively.There will be four Manufacturing and three Balancing milk pools:• Farms located around our Arran, Campbeltown, Lake District and Haverfordwest creameries will make up our manufacturing pools• Farms located on the Scottish mainland, within Northern England, and the Midlands of England/ East Wales will make up our

balancing milk pools

update

In his letter to members prior to their AGM, Chief Executive Pat Machray described 2014 as “a challenging year” for the ANM Group. Despite this, the Group overall profit, after exceptional items and before tax for 2014 is £1,358,000 compared to £722,000 in 2013.For the first time in many years, payment of a discretionary member’s trading bonus was agreed by the Board. In addition, as the business improves, it was agreed at the AGM that the maximum shareholding limit be increased from £20,000 to £50,000. Pat continued: “Investment in the Group is key to our growth and success and I would take this opportunity to thank you for your continued support. I would also encourage members to continue to support us and to consider increasing their shareholding given the turnaround in the business in recent years.”

“The Group is progressing well; significantly strengthening its balance sheet by both its trading and the work on our land asset base to deliver shareholder value. “Our main objective as a Group, as ever, remains to deliver a reliable, cost-effective service to our members while being commercial enough to maximise returns for our members and re-invest in the group.”Pat stepped down as Chief Executive immediately following the AGM and took over the role of Chairman from John McIntosh, who retired after almost 11 years as Chair and 24 years on the Board. Executive Directors Grant Rogerson and John Gregor take over the management of the Group, along with Avril McLeod and Alison Green.

Challenging but profitable year for ANM

Chairman reports ‘near record’ crop output for ESG members Iain Brown, Chairman of East of Scotland Growers, recently reported on last year’s performance to members. There was an increase in throughput for the year, up to £11.9m from £11.2m and the balance carried forward increased to £974,998, up from £606,453 in 2014.The good weather during much of the growing season led to above budget yields and quality. These higher yields

Ringlink internship recruits SRUCThe land-based intern programme providing practical farm work experience to school leavers is now entering its third year. Run by Ringlink in conjunction with SAOS (along with other funders) the scheme has attracted widespread support since its inception, with numbers and interest growing over the years.

This year Ringlink has entered into collaboration with SRUC to deliver the internship - this offers additional benefits to the interns as well as for the scheme itself. SRUC’s Craibstone facilities will be used for the entire induction period and the group will use the Oatridge campus for an overnight stay when they attend The Highland Show.

The induction phase for this year will be extended from two weeks to three and will now include forklift training in addition to First Aid, Health & Safety, Risk Assessment, Manual Handling, and Basic Tractor Driving. This year will also see the inclusion of the Certificate of Work Readiness which will continue for a period of 16 weeks. Further industry knowledge is also gained during the induction period by visits to local agricultural businesses.

After their induction, the interns will commence their placement with a host mentor farm, where they will stay for the remaining six months.

Applicants are predominantly school leavers (16/17 years old), and the scheme is aimed at those with a genuine interest in farming and the

wider rural sector, but who are not necessarily from farming families.

The scheme supporters this year include the Mains of Loirston Charitable Trust, AgriScot, HGCA and the Royal Northern Agricultural Society (RNAS). Other supporters such as GPH Builder Merchants have kindly agreed to provide all interns with protective clothing.

Stephen Young, who works on the programme for SAOS, commented: ”Gaining the assistance of SRUC in delivering the Certificate of work readiness is a major development and we are delighted to be working with them. We need to ensure that the scheme is self-sustaining for the future and see this as a positive move towards our goal of a nationally -recognised training programme.”

One of last year’s interns, Ben Andrew, said of the programme: “I was keen to work on a farm but didn’t have any contacts with farmers. The programme has given me a chance to work and prove myself.”

Andrew Moir, Ringlink Chairman, added:“The Internship model has proved to be a particularly effective vehicle to encourage young people into the rural industry and to develop their core skills, and we are very encouraged by the results that have been achieved.“

We also remain extremely grateful to our funding partners for their most generous support and to whom we are greatly indebted.”

created marketing challenges for ESG’s management, with maximum volumes being supplied to customers on a daily basis and daily trading required to maximise returns on these. The co-op’s excellent customer relationships and their network of UK contacts meant that this was carried out effectively and fresh sales were well over programme. And it wasn’t all about broccoli - in a time when the UK cauliflower market is contracting, ESG’s fresh cauliflower volume is expanding and this growth is set to continue slowly over the next 12 months.The retailers’ ‘everyday low price’ activity resulted in downward price pressure as they battle the discounters for market share, Iain told members: ”This price pressure will be with us for the foreseeable future and we must all take steps to control our costs.”The freezing facility was put under pressure by last year’s bumper yields, so there was a welcome announcement to members that Pinguin has invested £2m in a new freezer for the 2015 season.Iain also reported that significant work on Research and Development was again carried out during the year, with new crop and varieties being developed, as well as new customers including, Aldi and Lidl.

Case IH deal continues to pay offThe innovative agreement between Scotland’s Machinery Rings and Case IH continues to benefit ring members, with over £138,000 being paid back to ring members over the last financial year, well above last year’s total of £101k. This money was paid to individual farmers on top of their own competitive trade-ins in the past year and is just one of the benefits of belonging to a Ring.

update

This year’s Scotland Food & Drink Excellence Awards were bigger and better than ever, with 840 guests attending the event and a record breaking 239 entries received. By the end of the evening, nineteen Scottish food and drink businesses and individuals had been victorious, including Highland Game Ltd, who won the Success Through Partnership Award, sponsored by SAOS. The judges told us that the decision was particularly tough this year, so congratulations go to the Scottish Cold Pressed Rapeseed Group and The Food and Drink Hub (Scotland) Ltd, who narrowly missed out. Christian Nissen, Managing Director of Highland Game said: “I am immensely proud to accept this award saluting our work together with Forestry Commission Scotland. From day one, my aim has been to take the venison industry forward. We have streamlined every aspect of our business, from “Hill to Plate”, over our 18 years in business and this award is cementing the strength and importance of our partnership with FCS.”There were 50 businesses nominated in total for the awards, and they represented a broad spectrum of Scotland’s food and drink: from small companies like Isle of Skye Sea Salt Company and Charlotte Flower Chocolates, through to industry giants including foodservice company Entier Ltd and AG Barr Plc. Produce traditionally associated with Scotland like whisky, fish and dairy was recognised alongside new, innovative products like charcuterie and chocolate flavoured with foraged meadowsweet.Jo and James Macsween of Macsween Haggis were jointly awarded a surprise Outstanding Contribution to Food & Drink accolade on the night. The award was presented in recognition of the company’s growth which is driven by their vision and dedication to creating new consumers through innovative product development and social media marketing. With 19 categories celebrating excellence across the Scottish food and drink industry, the Scotland Food & Drink Excellence Awards is considered by many to be the ‘Oscars’ of the sector. Included this year was new award for the Year of Food and Drink, recognising Young Talent in the industry, which went to Jamie Hutcheon of Cocoa Ooze .The winners were announced by broadcaster Kaye Adams at a ceremony at Edinburgh’s National Museum of Scotland. Attendees were treated to a drinks reception and delicious dinner, showcasing the very best of Scotland’s larder. The awards are organised by Scotland Food & Drink in partnership with The Royal Highland and Agricultural Society of Scotland (RHASS). The title sponsor is Asda and the awards are supported by Think Local.Chief Executive of Scotland Food & Drink, James Withers, said: “This year’s Awards have been a huge success with a record number of entries and our biggest ever award dinner. The skill, passion and innovation that mark our industry is represented in the diversity of the finalists and winners. Food and drink is now a national success story for Scotland and the Awards let us shine a light on just some of the people and world-class products that are behind that success. Crucially, it gives us the complete confidence that our industry will continue to grow in markets at home and overseas in the years to come.” For the full list of nominees and winners, go to:

Strong financial results for Tarff Valley despite depressed marketsIn his most recent Chairman’s statement, Tarff Valley Chairman, Robin Austin, reported on a year where the weather led to a huge increase in productivity but unfortunately the increased supply of commodities resulted in depressed markets. However, although the co-op’s turnover was down by £6m, profitability was slightly ahead of last year at £1,115,819 after tax. The board recommend a trading bonus of 1% on eligible trade and interest on member share capital of 3.5%, returning £471,805 to the members.Robin also announced that in 2015 the co-op would begin the

process of identifying and hiring a successor to Colin Owen. As he put it “they are very big shoes to fill as Colin has completely transformed the business from £5.2m turnover with 16 staff in 1992, to £58.2million with 92 staff in 2014.”In closing, Robin commended the staff on their excellent service and announced a 10% of profits bonus. He also thanked SAOS for their assistance and advice, particularly in forward planning and United Farmers for their continued help with effective buying.

http://www.foodanddrink.scot/events/excellence-awards.aspx

All of the 2015 SF&D Excellence Awards winners

Kaye Adams & Rona Sutherland, of SAOS, present the Success Through Partnership award

The Outstanding Contribution to Food & Drink award was announced by John Swinney MSP

If you have anything to contribute towards future editions of SAOS Update, please contact: Jennifer Grant, Communications and PR Manager - tel: 0131 472 4104 or email: jennifer.grant@saos.coop

update

Support the RSABI Great Glen Challenge 2015!SAOS is fielding two teams in this year’s RSABI Great Glen Challenge on Friday 28th August.Now in its fourth year, the RSABI Great Glen Challenge 2015 will see twenty-five rural organisations and businesses compete. Our brave SAOS team members will mountain bike, kayak, run, walk and quiz in this one-day team challenge, raising money for this great charity. (As well as taking part in a little ‘friendly’ inter-generational combat!)

Sponsor the SAOS teams by going to:

http://uk.virginmoneygiving.com/team/SAOSYoungAndImpressionables http://uk.virginmoneygiving.com/team/SAOSOlderButNoneTheWiser(Or click through from the RSABI Great Glen Challenge page.)

In addition to individual team sponsorship, RSABI are also looking to raise awareness of their Supporter Scheme. You can support them as an individual for £25 or as a business for £125. Please mention SAOS if you’re registering to do this.

teams in the

Please, if you can, support in both ways. Every £ raised helps RSABI to help someone who has fallen on hard times.

For more info on RSABI and its work, go to:

www.rsabi.org.uk

‘SAOS - Young & Impressionables’ ‘SAOS - Older but None the Wiser’

Cycling 34km: John Taylor (Scottish Pig Producers) Andy Peddie (Tay Forth Machinery Ring)

7km kayak: Emma Patterson Taylor (SAOS) Stephen Young (SAOS)

12km walk & quiz: Leanne Paveling (SAOS) Rona Sutherland (SAOS)

Running 17km: George Forrest (ANM Group) George Noble (SAOS)

Support drivers: Anna Robertson (SAOS) Dougie Watson (SAOS)