1. The Food Chain Enterprise Challenge A business enterprise day focusing on the Dairy Industry

2. The Food Chain Enterprise Challenge What is meant by the Food Chain? How can the links in the Food Chain be improved? Programme for the Day 1.Introduction - school based 2.Visit to a Dairy Farm 3.Conclusion - school based

3. What do you know about dairy products? Where do you buy dairy products? Where are they produced? Why do you eat dairy products? Do you consider they are healthy? Do you consider they are safe to eat? Do you consider they are cheap to buy?

4. What is the Dairy Food Chain? A series of links from the farm to your table. As the milk produced on the farm moves along the chain it is processed costing money, but the milk product also rises in value. The price of milk within the food chain is constantly changing.

5. The links in the dairy food chain

6. The Customer is a the top of the Food Chain Customers are very demanding We want a: Cheap Safe Varied Tasty supply of food throughout the year. The UK food industry is big business

7. The retailers, who need a variety of high quality attractively packaged products, sell to the customer

8. Collection from farm Raw milk intake Reception tests Rapid microwave pasteurization Smell and taste tests The processor collects, processes and packages the milk which is then sold to retailers Pasteurization and homogenisation Bottling and packing Chilled storage

9. Who provides the supermarket with the cheap, healthy and high quality food that we - the customer - demand? The Links in the Food Chain

10. Farmers make sure that they produce high quality milk which is sold to the processor

11. The Food Chain Challenge Card Sorting Activity Divide into 4 groups Each group will take on the role of one of the key players in the dairy food chain. Organise the picture cards to describe the sequence of processes completed at different stages of the chain.

12. The Dairy Food Industry is big business But who makes all the money? Is it: the farmer? the processor? the retailer? and is the customer getting value for money?

13. Who produces dairy products? In order to make a living, businesses in the food industry need to consider: Market size World Trade Sustainability Food Safety Traceability Animal Welfare Consumer Demands

14. The Dairy Food Chain starts with the dairy farmer and his / her cows The farmer needs to know about: competition from farms abroad how the EU & UK Government can support farming competitors in the UK the dairy food supply chain the cost of inputs e.g. feed, fertilizers, energy, labour etc

15. Key UK Dairy Farming Facts In 2006/7 approximately 13,500 dairy farmers produced 13.5 billion litres of milk The average herd size was 85 49% of milk was used in a liquid form, 80% of which was sold as fresh milk 25% of milk was used for cheese About 13% of production was exported

16. Dairy farming is big There are over 1 million cows on UK dairy farms Approximately 17,000 UK dairy farms belong to Assured Dairy Farms An average cow produces about 7,000 litres of milk per year, or about 20 litres of milk per day Since the mid-1980’s the number of cows has declined, and since 1996 there has been a 50% reduction in the number of dairy farms BUT… the yield has increased enabling total milk production to remain stable

17. Where does the milk go when it leaves the farm? Most farms do not have the facilities to process the milk It is sent by tanker to large companies which process and package milk from many different farms The 6 top milk processors account for two thirds of the market (Dairy Crest, Milk Link, Arla Foods, Robert Wiseman, Dairy Farmers of Britain and First Milk) There are also many smaller processors

18. Value Added and the Chain of Production When businesses transform raw materials and semi-finished products into finished products they add value to the product The businesses are linked together interdependently into a chain of production

19. How much value has been added as the milk passes along the Dairy Food Chain? How much does milk cost? Carton Size 568 ml 40p 1.136 litres 76p(66.9p/l) 2.27 litres£1.34(59p/l) 3.41 litres£1.96(57p/l) Prices are for semi-skimmed milk These retail prices are constantly changing Check your local retailers for the latest prices

20. The price of milk – the facts Supermarkets sell about 80% of the milk produced The supermarket sells at 67p per litre The processor sells at 52p per litre The farmer sells at 26p per litre These are average prices for semi-skimmed milk in April 2008

21. Who sells dairy products to the customer? The big supermarkets – Asda, M & S, Morrisons, Sainsbury’s, Tesco & Waitrose In 2007 their total turnover (milk and all other food products) was £93.8bn Smaller supermarkets and corner shops made £33.2bn Some milk will also be sold at farm shops

22. Retailers are worth a lot of money: In 2007 the UK grocery retail market was worth about £128.2bn Food and groceries accounts for 49p of every £1 of retail spending Groceries account for 12.7% of household spending, making it the 3 rd largest area of expenditure after housing and transport The UK and World populations are rising so the demand for food is rising too Is the era of cheap food at an end? Here are some facts and figures

23. Supermarkets – a retail success story We as customers have a ready made source of cheap food BUT………. What about the other links in the Chain?

24. Who is making all the profit? The farmer? The processor? The supermarket? Is the customer getting a fair deal?

25. Where are the Weakest Links in the Dairy Food Chain? Could these links be improved?

26. Fresh Milk Supply Chain