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Farm Business
Agricultural Matters
Andrew Blenkiron
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<blockquote data-quote="AIMS" data-source="post: 7479462" data-attributes="member: 157044"><p>We managed to wangle our way onto one of the Red Tractor 'consultation' webinars. During this Jim Moseley gave a breakdown of their income.</p><p></p><p>They have 23 staff and 19 board members.</p><p></p><p>Total annual income is £4.5million of which 50% is from farmers, 45% is from Royalty Fees and 5% is from AHDB.</p><p></p><p>The Royalty fees are the post farm gate income they derive from licensing the use of their logo. For our members it means that an abattoir has to be inspected and then, if they wish to make a claim that what they are processing and then selling into the supply chain is RT then they have to be licensed to do this. The next link in the supply chain may be a cutting plant, they too would have to be inspected and undergo what is termed 'mass balance' in order that what they then sell on is RT. They too then have to buy a license and so on. </p><p></p><p>Some of the abattoirs are of course cutting plants and processors. They are in the main supplying the supermarkets so just need to be inspected and then apply for a license. In many cases these businesses won't necessarily have a RT inspection but will be assured under the BRC Global Standard. They will then submit this to RT and pay a fee based on throughput and become licensed for the RT and therefore able to use the RT logo on pack.</p><p></p><p>However, in the more complex supply chains such as those to high street butchers and point, the 'chain' will break because a link will choose not to be inspected and licensed and so, they can't then use the RT logo.</p><p></p><p>But here's the rub. Within the meat supply chain there is an assurance scheme called Red Tractor Assurance Meat and Poultry Processing Standard. Many cutting plants and catering butchers are inspected by 3rd party audit to this standard. You would have thought, if you were inspected to the standard that you'd be allowed to use the Red Tractor logo or to make a claim on invoice that what you were selling along the chain is Red Tractor. No. You too have to then buy a license to use the logo or to use the words 'Red Tractor' on invoice.</p><p></p><p>To our mind this is nonsense. Surely, if a businesses that is sitting in the middle of the supply chain and is assured to the Red Tractor Assurance Meat and Poultry Processing Standard isn't supplying the consumer, but simply processing and moving product down the supply chain, then they should be allowed to make a claim on invoice that what they are selling is Red Tractor. The last point in the chain, that point at which the meat or poultry becomes consumer facing, is surely the point at which those selling the product should have to buy a license.</p><p></p><p>By the way, to be the best of my knowledge, non of the multiple retailers hold a Red Tractor license. They are selling pre-packs and the license sits with the processors.</p></blockquote><p></p>
[QUOTE="AIMS, post: 7479462, member: 157044"] We managed to wangle our way onto one of the Red Tractor 'consultation' webinars. During this Jim Moseley gave a breakdown of their income. They have 23 staff and 19 board members. Total annual income is £4.5million of which 50% is from farmers, 45% is from Royalty Fees and 5% is from AHDB. The Royalty fees are the post farm gate income they derive from licensing the use of their logo. For our members it means that an abattoir has to be inspected and then, if they wish to make a claim that what they are processing and then selling into the supply chain is RT then they have to be licensed to do this. The next link in the supply chain may be a cutting plant, they too would have to be inspected and undergo what is termed 'mass balance' in order that what they then sell on is RT. They too then have to buy a license and so on. Some of the abattoirs are of course cutting plants and processors. They are in the main supplying the supermarkets so just need to be inspected and then apply for a license. In many cases these businesses won't necessarily have a RT inspection but will be assured under the BRC Global Standard. They will then submit this to RT and pay a fee based on throughput and become licensed for the RT and therefore able to use the RT logo on pack. However, in the more complex supply chains such as those to high street butchers and point, the 'chain' will break because a link will choose not to be inspected and licensed and so, they can't then use the RT logo. But here's the rub. Within the meat supply chain there is an assurance scheme called Red Tractor Assurance Meat and Poultry Processing Standard. Many cutting plants and catering butchers are inspected by 3rd party audit to this standard. You would have thought, if you were inspected to the standard that you'd be allowed to use the Red Tractor logo or to make a claim on invoice that what you were selling along the chain is Red Tractor. No. You too have to then buy a license to use the logo or to use the words 'Red Tractor' on invoice. To our mind this is nonsense. Surely, if a businesses that is sitting in the middle of the supply chain and is assured to the Red Tractor Assurance Meat and Poultry Processing Standard isn't supplying the consumer, but simply processing and moving product down the supply chain, then they should be allowed to make a claim on invoice that what they are selling is Red Tractor. The last point in the chain, that point at which the meat or poultry becomes consumer facing, is surely the point at which those selling the product should have to buy a license. By the way, to be the best of my knowledge, non of the multiple retailers hold a Red Tractor license. They are selling pre-packs and the license sits with the processors. [/QUOTE]
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Andrew Blenkiron
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