Grain industry slammed for costly waste

By Catherine Boal

- Last updated on GMT

Related tags: Supply chain, Wheat

Inefficiency in the UK cereals supply chain is costing the industry
almost £1 million (€1.47m) a week and cereal manufacturers are
partly to blame, according to a new report from the Centaur Grain
group.

The 'Against the Grain' report blames this £40 million (€59.1m) waste per year on factors such as rejected loads, unnecessary waiting times, inefficient storage and inconsistent haulage operations but claims it is not just the growers who need to address these issues. More needs to be done by all sections of the industry to prevent waste on this scale say Centaur, a grain marketing business which collaborated with English Farming & Food Partnerships (EFFP) to produce the research. Centaur managing director Malcolm Parkinson said: "It is quite clear that we as an industry need to be more professional. Failure to do so means at best we continue to pour millions of pounds of profit down the drain, but at worst it means the end of the road for many currently involved in arable production." ​The report singles out bread maker Warburtons and breakfast cereal and snack manufacturer Jordans as good examples of how industry can help reduce costs. Both these businesses have worked with farmers to form strategic partnerships and capitalised on consumer concerns over the environment and ethical sourcing. Warburtons, who own Britain's largest bread brand, has focussed entirely on high quality loaves while Jordans follows a grade production protocol to emphasis the importance of conservation and environmentally friendly practices. In order to further mitigate supply chain loss, Centaur suggest concentrating on a number of areas. The group urges farmers to identify ways of adding value to crops and differentiating manufacturers' brands, working in tune with consumer trends. In addition, the system should be simplified with processors and manufacturers consolidating their supply base and implementing a best practice supply chain.

Related topics: Processing & Packaging, Ingredients

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