Supply Chain Co-operation, The Formula For Success

Digital Re-print - September | October 2009 Feature title: Supply chain co-operation, the formula for success

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Supply chain co-operation s s e c c u s r o f a l u m r the fo When cereals breeder KWS first launched its Cordiale variety into the UK market, it did not fully realise the potential it had as a milling wheat. Excellent supply chain co-operation and communication led to the company being able to develop a better understanding of it potential uses by millers and its benefits to farmers.

K

WS commercial director Andrew Newby, has learned many valuable lessons in the process of bringing the new variety, Cordiale to market - not least in the area of benefits to be gained from supply chain co-operation. Because of this, the story of Cordiale has been chosen by HGCA’s Supply Chain Partnership as a case study, illustrating communication and collaboration which is one of its five key themes, the others are: innovation, transport and logistics, duplicate materials testing, and cost and price. Cordiale was bred at KWS’s facility at Thriplow, Hertfordshire, from a cross made some time in the early 1990s, and it entered official trials in 2001. Pre-testing had shown that Cordiale was a 34 | September-october 2009

potential milling wheat, and the initial trials by nabim categorised it in its Group Two. At the same time continuing trials by KWS were demonstrating some clear agronomic benefits for the variety. As well as being early to harvest, the variety was particularly good at maintaining its Hagberg and specific weight, even in quite difficult harvests. It was also very good at assimilating nitrogen into protein. Mr Newby says, “We were associated with Serasem, part of the Invivo Group, and they had been trialling Cordiale in France. Even though it was early to harvest, Cordiale was not appropriate for French conditions. “Nonetheless, their trials had shown that it was very close to some of their French wheats, and they were very happy with the grain quality. This was the time when many of the part-baked baguettes and similar products

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Supply chain

“Cordiale has been chosen by HGCA’s Supply Chain Partnership as a case study, illustrating communication and collaboration which is one of its five key themes, the others are: innovation, transport and logistics, duplicate materials testing, and cost and price”

local farmers who had been growing Cordiale and started to see the benefits of the variety. The fact, that it was harvested before other varieties – and potentially before any rain – meant that Cordiale could be commercially viable. It also allowed farmers to prepare their Oilseed Rape seedbed much earlier than other varieKWS commercial director Andrew Newby ties of wheat. “Farmers were starting to learn about the variety, and starting pened mostly spontaneously in this to tell us about it,” says Mr Newby. case, provides a template for future “At our open days people could see that activity. it was earlier than other varieties, and the “What we are trying to do now is feedback we got from farmers brought the to encourage that kind of communicabenefits of the variety to life.” tion for future varieties, but to attempt to condense it over a shorter period of time,” he says. Growing for the market “We want the millers to be proacCo-operation and feed-back between 20930 Cordiale Ad AW:Layout 1 25/9/09 14:52 Page 1 KWS, the growing farmers, merchants and ADM Milling has been critical in the process of successfully bringing Coridale to the market. Mark Ringrose, ADM Milling’s trading manager comments, “As a major processor we have been giving a clear message regarding our requirement for Cordiale in conjunction with the breeder and merchants, and view this as a clear example Why does ADM Milling, the UK’s largest independent miller, want Cordiale? Could it be the high yields, early maturity, robust Hagberg, of growing for superb specific weight, consistently high protein content, and a proven the market.” 5 year track record? – in fact, it’s popular with millers everywhere! If you’re looking for premiums next harvest – bank on Cordiale. According to Mr Newby, KWS UK LTD 56 Church Street, the co-operThriplow, Nr Royston Hertfordshire SG8 7RE ation right Tel: +44 (0) 1763 207300 Fax: +44 (0) 1763 207310 across the Email: [email protected] supply chain, www.kws-uk.com which hap-

Cordiale

were coming out in the UK, and we were quite excited about the potential for the variety.”

Joining the recommended list Cordiale went on to the Recommended List in 2004, and it begin to be grown, although it had a relatively small market share. As grain began to find its way into the mills, KWS were approached by ADM Milling, the country’s largest independent flour miller, which had seen the results of the first commercial runs of the variety and were interested in its potential. At this time KWS had only just begun to open up lines of communication with the miller, and was encouraged that ADM felt able to approach them. The miller was put in touch with grain merchants who could source supplies of Cordiale. Over a period of two years, ADM found that Cordiale was very consistent, but was also extremely flexible and could be used in a number of grists. The combination of wheat quality, being early to harvest, and this flexibility made it extremely attractive. KWS began to get feedback from

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The Breadwinner

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September-october 2009 | 35

Journal: GMFT KWS: Cordiale ‘The Breadwinner’ Ad Type Area: 132 x 90 mm Supply as hi-res PDF Job no: 20930

Supply chain

Supply chain

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“Cordiale was bred at KWS’s facility at Thriplow, Hertfordshire, from a cross made some time in the early 1990s, and it entered official trials in 2001. Pre-testing had shown that Cordiale was a potential milling wheat, and the initial trials by nabim categorised it in its Group Two. At the same time continuing trials by KWS were demonstrating some clear agronomic benefits for the variety”

tive with us at the very early stages of a variety, and the farmer to report back to us. We don’t know everything about a variety when it goes out onto farm. If

Supply Chain Partnersup

Jenny Batchelor, Arable Business Groups Manager at HGCA says, “The development and marketing of Cordiale is an excellent example of exactly what HGCA’s Supply Chain Partnership is trying to promote. “We want the millers to be proactive with “If information flows back and forward along us at the very early stages of a variety, the supply chain, and the parties work together and the farmer to report back to us. We then everyone benefits, don’t know everything about a variety and makes more money as a result.” when it goes out onto farm. If farmers and The work of HGCA’s millers will share their experiences – good Supply Chain Partnership, is based on the findings or bad – and there is a trust between us, of the Cereals Industry then we can promote varieties much more Forum (CIF), a threeyear project funded by quickly, and speed up the time that it the UK government, and takes to bring new varieties to market” organised by HGCA and the Food Chain Centre. CIF used a variety of techniques to identify areas that could be improved in the UK cereals industry. These farmers and millers will share their experiences – good or bad – and there is a included individual company activities such as trust between us, then we can promote Probes which allowed companies to compare varieties much more quickly, and speed their business practices with a global database, up the time that it takes to bring new including some of the best run companies in the world, and Value Chain Analyses (VCAs), varieties to market.”

36 | September-october 2009

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Bühler AG, Pasta & Extruded Products, CH-9240 Uzwil, Switzerland, T +41 71 955 11 11, F +41 71 955 35 82 [email protected], www.buhlergroup.com/pasta

which looked at how value is added right across supply chains. Five consistent themes emerged from CIF: • • • • •

Communication and Collaboration innovation Transport and Logistics Duplicate Materials Testing Cost and Price

The need for better communication and collaboration is the theme that links all of the other themes together. As illustrated by the story of Cordiale, where there is good communication and trust, problems can be solved, and supply chain efficiency improved. Interviews with Mr Newby can be viewed on HGCA’s website (www.hgca.com/supplychain) as audio and video podcasts, along with a variety of other case studies. More

inforMation:

HGCA Agriculture and Horticulture Development Board Stoneleigh Park, Kenilworth Warwickshire CV8 2TL United Kingdom Tel: +44 247 6692051 Email: [email protected] Website: www.hgca.com/supplychain

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The solution behind the solution.

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