Summary
EFFP was engaged by Unilever and their mustard seed growers to assess the implications and benefits of a more collaborative supply chain for Colman's English mustard seed production and then ensure its successful implementation. As a result the English Mustard Growers Co-operative has been formed, thus securing a locally grown long-term supply of mustard for Colman's Mustard.
The business challenge
Due to a decline of mustard seed yields and therefore profitability for the grower, Unilever was finding it increasingly difficult to meet demand from English suppliers and had to source increasing amounts of seed from overseas. Unilever were keen to maintain the strong 'English' brand of Colman's Mustard and the strong relationships with local growers their local growing base, so needed to look at ways to support and encourage farmers to keep growing the crop, whilst also maintaining their production efficiency and competitiveness.
There were three different but interlinked challenges to be addressed; improving the profitability of the crop for farmers and the consistency of quality of seed delivered, maintaining the competitiveness of the supply chain and production process.
How we helped?
EFFP was brought on board by both Unilever and the existing mustard growers to assess the implications and benefits of a more collaborative supply chain for Colman’s English mustard seed production. This included an analysis of mustard seed growing costs, a feasibility study for the formation of a grower supply group and a review of the trading relationship between growers and manufacturer.
After the initial stage of research was completed, the second stage went on to make recommendations on how the new grower and Unilever relationship should be formed, to facilitate its establishment and the formation of the new growers co-operative and finally, helping the growers develop their business plan.
The outcome
As a result the English Mustard Growers Co-operative has been formed, with a business plan to re-establish mustard seed as an important and profitable crop within the East of England. This three-year plan will ensure that the majority of mustard seed for Colman’s Mustard is grown locally to the production site in Norwich, which will support the English provenance message. It will also significantly help Unilever with risk management with regards to security of supply.
The group is now working closely with Unilever and other partners to develop yields and crop husbandry, improve the initial conditioning of the harvested crop so that the quality of seed does not deteriorate in store, and improve communication between all those involved in the crops production. Within a year of forming the group has invested in mobile crop drying and cleaning equipment and as a result it can now provide vendor assured delivery of the crop delivered into Norwich. This helps make sure that the production process for Colman’s Mustard is as efficient as possible and thereby reducing unnecessary operational and supply chain costs. In addition, it simplifies contract management for Unilever as they are dealing with one group as opposed to many individual farmers.
The key benefits for the farmer are mainly improved long-term profitability and reduced risks, but most significantly they will be able to continue to grow, what is a very important break-crop, on a commercial basis. They will also be able to work with fellow members of the group to develop the crop further in terms of learning and sharing of information.