Peter Hall - Best practice in the top fruit sector
01/01/2008
Best practice in the top fruit s
Peter
Hall
Peter Hall grows and packs top fruit in Kent. In 2005 he started to compare
costs and share best practice with other growers in a benchmarking group called
Checkers 83.
For many years, the general trend for UK top fruit production has been a steady
decline. Many top fruit farms have been unable to maintain profitability and
have exited the industry. Despite this overall picture, many growers are
achieving profitability and obtaining superior results setting them apart. One
reason for this is to be found in their business practices.
We
have no control over the world price of our produce, but we can control
our costs and improve our yields. Benchmarking helps us focus on those
glaring differences in
performance and ask why they are occurring
Peter Hall
Top Fruit Production
Benchmarking and productivity
A recent study by the Worshipful Company of Fruiterers concluded:
“By initiating benchmarking of productivity measures such as tonnes per hectare
or turnover per hectare as well as harvesting and packing costs, growers would
be able to reassess continually their own performance against industry
standards. Using these comparisons, growers could establish improved performance
targets, learning from the practices and standards of the best growers.”
Peter Hall, like other growers, has made many changes on his farm.
Over time he has used less fertiliser and learnt to apply it more effectively
Advice is sought, often from different angles to help resolve tricky issues
A desk-top computer has helped streamline many office practices
Despite these and other improvements, Peter acknowledges that he is not good at
everything. Furthermore, without a tool like benchmarking, Peter is unaware of
how well he is doing compared to the rest of the industry.
Whatever size of business and whatever varieties are grown, all growers have to
undertake similar operations, for example pruning, applying fertilisers and
pesticides. In Checkers 83 the growers taking part in benchmarking are finding a
way to compare their costs with other growers in order to identify potential
problem areas that they can act on.
Benchmarking to suit your business
Peter’s orchards are located in the Low Weald part of Kent, an area that is
prone to late frosts. Because of the production risks, Peter diversified some
time ago and established a central packing facility that has now been expanded
for handling year-round supply.
In the early days, Peter was supplying through Orchard World and was first
introduced to benchmarking by Laurence Olins.
Laurence is a long-standing advocate of benchmarking and set up an arrangement
under which each of the pack-houses, supplying through Orchard World, would
visit each other to identify and share best-practice. This was a very informal
arrangement but worked well.
Peter’s business has now moved on but he has been looking to repeat the benefits
that benchmarking has brought to his pack-house with an approach that he could
apply on his farm.
For Peter, any benchmarking had to fit in with the principles that underpin his
approach to running the business:
Keep it simple
Be focused on specific objectives
Monitor and appraise your own performance
Benchmarking
Although
the benchmarking template will enable us to understand our costs better,
it is not a penny-chasing exercise. The true worth is in
flagging up variations in costs per tonne or per hectare so that we can
identify why these are occurring and move forward
Peter Hall
Top Fruit Production
When Peter became aware of benchmarking, he realised that it provided the
structured approach that he was looking for and he set about interesting other
growers in the Checkers 83 group. Seven nearby growers agreed to form a group. A
template was been designed with the help of Peter and his colleagues that
enables the growers to capture their costs and identify their true net margin.
All of the technical work has been carried out by Andersons – the Farm Business
Consultants.
Benchmarking is based on the idea that small groups of growers compare their
costs of production in a totally confidential way. These comparisons typically
reveal wide variations that form the focus of discussion in the group.
Each group will generate an improvement plan for its members that will help them
reduce costs or develop aspects of quality and service. This can be a powerful
tool for individual growers, particularly as there are several different groups
from across the top fruit sector taking part.