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Organic Annual Report
Marketing/Procurement
3.1 The "
Forward Strategy for Scottish Agriculture" contained a vision of a prosperous farming industry which benefits all the people of Scotland and states that it should also:
3.2 This is also true for the organic sector, where growth must be market led and we have seen all too well what happens when growth is out of step with the market. The recent glut of organic milk and the off-loading of organic lamb into the conventional market being recent examples.
3.3 The Scottish Executive is taking steps to rectify this position by working with the industry to address this market failure both in terms of pump priming the market and assisting in initiatives that the industry can use to streamline the supply chain. By doing this we can ensure that this vision of a prosperous farming industry is secured.
3.4 The Scottish Executive has two main schemes of assistance to the food processing industry - the Processing and Marketing Grant Schemes (PMGS), which offers capital assistance and the Marketing Development Scheme (MDS), which offers non-capital assistance.
3.5 Since May 2001 over 5.3 million in grant assistance has been awarded to projects under these schemes for the processing and marketing of organic produce. These projects triggered total new investment of some 32 million and helped companies with investment in buildings and equipment, to develop added value processing of organic produce. Other projects helped develop a more co-ordinated organic marketing chain and quality assurance and certification schemes for the organic sector. It is worth noting that a condition of grant is that processors must source predominantly from Scottish primary producers.
Public Sector Procurement
3.6 Whilst there is a substantial volume of public sector procurement carried out across Scotland, the Scottish Executive is not always in a position to direct or oversee this activity. The Partnership Agreement does however contain the following important and progressive commitments:
We will support measures to improve the availability of affordable, quality healthy food in low income areas.
We will ensure adequate nutritional standards for food served in care homes, hospitals, day centres and prisons.
We will improve nutritional standards for school meals; end advertising of unhealthy foods in schools; work with local authorities to promote healthy eating; and actively discourage the availability of unhealthy food and drinks in schools as a condition of becoming health promoting schools.
3.7 The Scottish Executive Procurement Directorate (SEPD) are currently in the process of organising a conference for Scottish public purchasers which is due to take place at the end of May 2004. At the conference there will be a presentation from both the industry and from the Scottish Executive on sustainable food and it is hoped that catering at the conference will "showcase" Scottish produce and suppliers.
3.8 In addition to raising the profile of food at the conference, SEPD are producing guidance to integrate sustainable development into the public procurement of food and catering. Consultation is taking place with interested parties and it is anticipated that the guidance will be issued around the time of the conference in May.
3.9 In the interim, Organic Stakeholders will be aware of the steps the Scottish Executive has taken to broaden opportunities for organic producers accessing procurement contacts in the Health and Prison services in Scotland.
Healthy Eating
3.10 The Scottish Executive was pleased to announce in February an additional 63.5m investment to improve the nutritional value of school meals. This followed the publication of "
Hungry for Success" (the report of the Expert Panel on School Meals) that sets out a vision for a revitalised school meals service in Scotland and presents a number of far-reaching recommendations connecting school meals with the curriculum, as a key aspect of health education and health promotion. Measures include:
New nutrient standards for school meals and detailed mechanisms for monitoring them.
Larger portions of more nutritious food.
Fresh, chilled drinking water available free in school dining halls.
Raising awareness of the entitlement to free school meals.
Improved atmosphere and ambient facilities in dining halls.
Connecting school meals with the curriculum as a key aspect of health education and health promotion.
Scottish Diet Action Plan
3.11 The Scottish Diet Action Plan (SDAP), "
Eating for Health" (1996) secured widespread agreement on policies, priorities, and interventions through provision of a framework of action to improve diet and make progress towards achieving the dietary targets. This action plan still provides the framework for all policy to improve diet in Scotland today. Dietary improvement is not achievable without tackling the poor life circumstances which underpin so much of Scotland's poor dietary and nutritional status. The implementation of the SDAP therefore is being taken forward in the context of the Scottish Executive's wider policies and structures to promote social justice. The SDAP:
Acknowledged that improving Scotland's diet would be a lengthy and complex task.
Confirmed the Scottish dietary targets, including targets for breastfeeding rates for 2005.
Identified that the most immediate and attainable benefit to the Scottish diet would be doubling consumption of fruit, vegetables and an increase in complex carbohydrates eg, potatoes, wholemeal bread and cereals.
Highlighted the key interests in a position to exercise major influence on the Scottish diet and recommended action for each.
Defined the barriers to adopting a healthier diet in terms of food affordability, availability, culture and skills
Set the first task as ensuring that the Scottish population understood clearly the need for change.
3.12 The SDAP identified 12 key interests in key positions to exercise influence over Scottish diet; primary food producers, manufacturers and processors, major food retailers, caterers, schools, Government and its agencies, the NHS, local authorities, consumer organisations, community and voluntary sectors, and the media. The next phase of the SDAP implementation will focus on the key targets of increasing consumption of fruit and vegetables and upon reducing consumption of fat, particularly saturated fat. As a basis for developing co-ordinated action in this area and the setting of key priorities, a food chain approach has been utilised. Each of the following objectives are set for action throughout the food chain to achieve the Scottish dietary targets:
promote the consumption of healthy diet and food choices;
promote the preparation and provision of meals which offer a balanced diet;
increase access to healthier food choices, particularly in low income and rural areas;
work with the food manufacturing, processing and retailing industries to further develop and promote healthier food choices; and
ensure that primary food producers at both national and local level contribute fully to the achievement of the Scottish dietary targets.
Agriculture: the Primary Health Service?
3.13 "
Agriculture: the Primary Health Service?" conference was held at Paisley University on 28
th May 2003 and was co-hosted by the Soil Association Scotland and SAC. Around 130 delegates participated in a very successful programme that was addressed by a range of eminent speakers. The conference succeeded in bringing together a range of professionals and the feedback from delegates was extremely positive. It attracted significant press coverage and re-ignited public interest in "
Hungry for Success" and school meals provision.
3.14 The Scottish Executive is also aware of the Soil Association Scotland's report sub- titled "
Healthy, Local, Organic School Meals in Scotland" and it is to be hoped that organic foods can play a part in our efforts to improve nutrition. At this moment, however, it is considered that the immediate requirements of Scotland's school children are better met by embracing all types of healthy produce and we believe that the organic sector can benefit from the overall promotion of healthy eating in schools.
3.15 As previously stated a major conference on public sector procurement is to be held in May 2004. In the meantime the Scottish Executive welcomed the Soil Association's report "
Organic Farming, Food Quality and Human Health - A Review of the Evidence", and took the findings into account in developing our own Action Plan. Speaking at the Soil Association Conference on 9 January, however, the Deputy Minister stated that the challenge was still there for the organic sector to produce the hard evidence of the greater nutritional value of organic food.
Market Opportunities
3.16 The Scottish Executive was encouraged by the report that the UK organic market stands at 1bn - the third largest organic market in the world and are in no doubt that the "greater evidence of nutritional value" called for by the Deputy Minister on
9 January would help boost market penetration even further.
3.17 The market holds many challenges for organic producers and processors and Scottish Enterprise has worked closely with the industry to help exploit the market opportunities through the Scottish Food and Drink Organic Action Plan. This works in tandem with the Scottish Executive's Organic Action Plan, by delivering services to support:
Market development.
Communications.
Supply Chain Links.
3.18 A strong partnership between stakeholders has been established over the last year to deliver the Scottish Food & Drink Organic Action Plan. The Plan has been delivered by an Organics Industry Development Officer, working out of the offices of the Scottish Organic Producers Association. A steering group has been established to provide advice and support in delivering the Plan, and includes the Soil Association Scotland, the Biodynamic Agricultural Association and SAC.
3.19 There is much in this partnership that the sector can benefit from including new information available through the Organic Industry Development Officer and the industry website, (
www.scottishfoodanddrink.com). This covers all aspects of the organic industry from Marketing and Sales, to Packaging, Logistics and Learning. Users can also access the Soil Association's new "Organic Marketplace" service which helps farmers to search for or sell livestock, forage and grazing. The new website services for the organic industry were launched at the Soil Association's national conference on 9 January.
3.20 All of these new services have been developed to help the industry grow and all organic businesses are urged to participate in order to gain the significant benefits available and to enable the Scottish organic sector realise its potential.
Strengthening the Organic Supply Chain
3.21 Using feedback from its licensee members, the Scottish Organic Producers Association (SOPA) teamed up with United Auctions to pilot the first live auctions in Scotland for organic livestock in the autumn of 2003. Held at the UA mart at Stirling, the sales were a great success and attracted considerable interest which has led to new trading connections. Certification of auction marts is under discussion by the UK organic certification bodies, and SOPA is considering new standards with UA, ready for release of its licences.
3.22 In the course of 2003, Scottish Enterprise, through Scottish Food and Drink, granted Soil Association Scotland 1,500 to undertake some supply chain development work in the meat sector. This work involved approaching sixteen abattoirs, butchers and meat packers in geographical areas where primary producers were known to have problems accessing organic operators. As a result of this approach two businesses progressed swiftly to becoming licensed and another is in the process of becoming licensed.
3.23 Other strands are being developed and it is hoped that this work will open up opportunities for organic farmers who have previously found it difficult to preserve the organic status of their beef and lamb through the supply chain to the point of consumer purchase.
3.24 Supply chain problems are to be expected in a growth industry and things can turn around quickly as was the case when the Soil Association Scotland made a link between Scottish Organic Milk Producers (SOMP) and Kingdom Cheese (a Scottish processor making organic mozzarella for Pizza Organic) which has boosted Scottish sales of Organic milk by 10%.
Producer Groups
3.25 A number of regional producer groups have been established in Scotland and SEERAD funding has enabled SAC staff to provide technical input at meetings of groups in the Borders, Dumfries and Galloway, Highlands and Shetland
3.26 All of these groups have been formed with the intention of exchanging information and representing the interests of organic farmers and crofters at a local level and regular meetings are held, often with invited speakers. Much of the discussion and debate at these meetings focuses on marketing issues and all of the groups have taken lead roles in the development of local marketing initiatives. Examples include the direct marketing of Shetland lamb, and the development of a Border brand in
co-operation with a major retailer.
3.27 Discussions have taken place between Scottish Food and Drink, SAC and producer groups. The Organic Stakeholder Group, aware of the issues faced by producers, is conscious of the need to consider a way in which these issues might be addressed.
Organic Sheep
3.28 Collaboration between SAC, SOPA and the Soil Association Scotland, resulted in a well supported mini-conference and farm visit to a SAC demonstration farm at Blair Atholl focusing on organic sheep production and marketing.
Market Share
3.29 In order to gain a clear picture of progress toward the target contained in the Action Plan the Scottish Executive has commissioned SAC to carry out a market penetration study to provide an up-to-date snapshot of the market. The report shall be published in spring 2004. The information emerging from this study will be an important element in identifying the future focus and direction of effort by both the Scottish Executive and the key stakeholders in seeking to support the market penetration of Scottish organic products.
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