EFFP facilitated the development of a collaborative and transparent supply chain between Pork Farms, Eggsell, a marketing egg co-operative and Bumble Hole Foods, a liquid egg processor.
A core part of the development was the creation of a transparent pricing model, giving a fair price to all. This formed a strong platform on which other mutually benefiicial developments are being built.
THE BUSINESS CHALLENGE
Pork Farms had concerns in 2009 over the security of supply of liquid eggs with the EU cage ban approaching and the impact that would have on egg prices. Egg is a strategically important input for Pork Farms being a key ingredient in many of their products.
Pork Farms were keen to develop a back to farm collaborative relationship with egg producers to secure supply and gain some visibility and stability price through a potentially turbulent period and beyond.
However Pork Farms use pasteurized liquid egg and therefore a processor was required to take the shell egg from the farmers and provide a product which could be used by the manufacturer. Therefore finding a processor to work transparently and collaboratively was key to making this supply chain work.
HOW WE HELPED
EFFP introduced Pork Farms to a group of egg producers in Yorkshire who had recently formed an egg marketing cooperative called Eggsell. The group were looking to develop relationships with end users of eggs and to achieve more consistent margins for their producer members.
Pork Farm’s proposal matched their needs and they were keen to progress things. EFFP facilitated discussion to help align their individual objectives, develop commercial and operational ways of working and start to form a relationship.
“We wanted to take the uncertainty out of the market and guarantee a sustainable supply. We engaged with EFFP, who were known to us leading this type of work, they identified egg producers in Yorkshire as well as developing a cost of production model. They acted as independent referee to help broker discussion to this new relationship.”
Paul Denney – Head of Purchasing, Pork Farms