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Contents
The Essential Catalyst ............................................................................... 1 History of the Birmingham Markets ............................................... 2 Contents ................................................................................................................ 3 Introduction ....................................................................................................... 5 Executive Summary ..................................................................................... 7 Wholesale Markets: The Economic Impact............................... 8
National Context ............................................................................................... 8 A Catalyst for Creating Value ..................................................................... 10 Current Structure of the Retail and Wholesale Markets Sector ... 11 An extensive catchment area .................................................................... 12 A National Contribution................................................................................ 13 Market Regeneration Potential ................................................................. 14 Delivering Competitive Advantage .......................................................... 15 Encompassing a Wider Locality ............................................................... 16 National Policy Issues .................................................................................. 16 EU Policy Issues .............................................................................................. 17 The Essential Catalyst .................................................................................. 18
Horticultural Section ................................................................................ 21 Meat Market .................................................................................................... 23 Poultry Market .............................................................................................. 24 Flowers ................................................................................................................ 25 Future Prospects.......................................................................................... 26 The Market Traders ................................................................................... 27
Introduction
Birmingham Wholesale Fresh Produce Association, which represents the majority of Birminghams Wholesale Market Traders have commissioned this study to initiate greater awareness and stimulate understanding by the public and policy makers, of the Markets importance to Birmingham and the national food-supply chain. Key findings of the study are that the Wholesale Market, are an important catalyst for the economic well being of Birmingham. Its importance is underlined by around 15,000 jobs in Birmingham and beyond being dependent on it continuing to flourish. Its contribution to the multicultural vibrancy of Birmingham is also vital as it serves the needs of the ethnic minority communities across the Midlands. It also provides important access to low cost fresh produce and is a critical component of the wider markets community in Birmingham. Furthermore our integrated Markets, providing fruit and vegetable, fish, poultry, meat and flower trading operations on one site has been seen as the template for other wholesale markets around the world and is something Birmingham should be proud of. Our heritage is at stake as well as the livelihoods of many. In the restaurant and hospitality sector, particularly in the Asian and Chinese communities as well as other minorities, there is a particular reliance on the Wholesale Markets. We need a financial commitment from the Council to either spend money on taking our current site forward into the next decades, or give funding to build or buy a new site as previously promised, if this does not happen there will be no market, resulting in large job losses and increasing food costs. We must find a long term solution to the future of the Birmingham Wholesale Markets in the interests of all of our stakeholders. Why if all the UKs large cities (such as Manchester, for instance) have, and fund, a wholesale market - cant Birmingham do the same? The City and the Markets of Birmingham are synonymous for a very good reason: both owe each other their existence - it may never be possible to prove which came first. Indeed, the Bull Ring may be one of the earliest examples of commercial town planning in English history. Mark Tate, Chairman Birmingham Wholesale Fresh Produce Association The 1974 development of the Pershore Street site established the current Markets configuration, and this continues to be a model others seek to emulate. To maintain the effectiveness of the Markets further, development and refurbishment will however be essential. If this re-development is to be successful, we need to understand not just the commercial structure and impact of the Markets, but also the critical, but often overlooked, economic role undertaken both at a City-level and in the national context. We believe that a solution can and must be found in the interests of our City and the wider community.
The Markets are a vital part of our local economy, supporting an ecosystem of small firms in Birmingham and beyond and thousands of jobs. Professor David Bailey
Executive Summary
The rebalancing of the English economy currently underway, will ultimately have an impact on the structure of the food supply chain, which will have to respond to shifts in both demographic and consumption patterns. This will provide key opportunities to expand and develop the role and contribution of Wholesale Fresh Produce Markets in the effective delivery of fresh produce, both to consumers and processors.
However, the dearth of data on the wholesale markets sector makes it difficult to accurately assess their real contribution to the wider economy. Nevertheless, according to DEFRA, the food and drink wholesale sector, continues, to play a significant, varied and continually over-looked role in the UKs food supply chain. Wholesale markets also play a critical function ensuring a range of sources and product diversity in the food supply chain. As the largest integrated Markets in the UK, and indeed one of the largest in Europe, Birminghams catchment area is by the far the greatest, encompassing close to 6 million people. Most notably: With an aggregate turnover of 275 million comprising 73 trading operations it employs close to 1,100 people. Provides fresh produce to close to 5,000 independent small businesses in the retail, restaurant and food outlet sectors. Whilst supporting an estimated 15,000 jobs in the wider economy. Critically, it constitutes a viable and sustainable entrepreneurial SME cluster in the heart of Birmingham, able to react rapidly to new demand and supply opportunities. By providing a competitive but accessible entry route to the formal economy for SME start-ups and new entrants, it offers the potential for an organic selfsustaining regeneration in the wider Digbeth area, maximising the impact of public finance, but also attracting latent private sector funds. Moreover, as the nexus of a robust and proven transport infrastructure, the Markets could provide the catalyst for the development of a vibrant and dynamic Digbeth. Already attracting 13,000 visitors a week, growth in the Markets would provide a major stimulus to the local economy. A key driver of price competitiveness, flexibility and heterogeneity in the food-supply chain, both locally and nationally, the wholesale markets offer significant opportunities for creating value-added output downstream in the food-supply chain. Whist at the same time, it provides an important source of City Centre employment demand, especially for the young. Given the increasing pressure on the High Street chains and further price wars between the large retail multiples, wholesale markets provide an important buffer of immediately deliverable extra capacity, at a time when food security issues are increasingly coming to the fore.
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A key issue remains that in comparing the role of wholesale markets to their nearest economic equivalent, the distribution centres of the retail multiples, is like with like is not being compared. Wholesale markets are essentially organic entities comprising a range and number of medium-sized enterprises operating in positions of mutually-sustained but competitive rivalry, developed over decades, and in some cases hundreds of years. Distribution centres in contrast are mechanistic links, internal to individual commercial conglomerates, and respond to management information With wholesale markets reacting much more to the hidden-hand of the market, in marked contrast the mathematical predictions of the retail multiples, it is difficult to state what the real, as opposed to the recorded, contribution of wholesale markets is to the creation of gross valued-added (GVA) in the wider economy. This has considerable consequences for economic development at both local and national levels. The public sectors evidencedspread-sheet based approach, is heavily reliant on ONS datasets and so probably fails to account for the cumulative impact of the retail and wholesale markets in the food supply chain. As the recent financial crises have demonstrated, failing to address specific economic factors simply because existing statistical data collation does not properly account for them is a risk laden dangerous strategy. In the case of the Birmingham Wholesale Markets, the public sectors absence of understanding of their real role extends even as far as the number of people directly employed on the site flows on structured predictions of company-specific consumer demand, rather than directly to the consumer. Furthermore, the distribution centres have a preference for just-in-time parameter-compressed delivery systems, usually based on sole-purchaser contracts. This approach has inherent inflexibilities and is increasingly proving to be found wanting in other sectors of the economy (most notably, the automotive), exposing the food supply chain to potentially catastrophic interruptions of supply. Similarly, the capital-intensive, credit-thirsty approach adopted by the retail multiples, in an environment where access to credit remains problematic (and could indeed prove increasingly fraught), places further systemic risk of a collapse, if not on par with Royal Bank of Scotland, then at least with Woolworths.
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A problem with analysis of the sector is the dearth of accurate trend series data and a limited amount of rigourous research into the various roles performed and critically, the impact of Birmingham Wholesale Markets, either nationally or locally. The large retail multiplies require and generate huge amounts of consumer-based data (with varying degrees of accuracy), that is an essential part of their business management strategies treating the consumer as a number. Retail market traders as small enterprises and wholesale markets traders as medium-sized enterprises do not require such extensive data resources to respond to market demand respecting the consumer as an individual.
vegetables, meat, fish, poultry and flowers which most other English wholesale markets cannot offer. Even taking account concerns surrounding ONS data records, the latest releases indicate that food & drink wholesaling contributes about 11% of GVA in the UK agri-food sector (beyond the farm gate). With the role of wholesaling in the earlier part of the food-supply chain, the provision of fresh produce by wholesale markets contributes to GVA in both the food & drink retailing and non-residential catering, and to a much lesser extent in food & drink manufacturing. Constraining access to the competitive pricing offered by these markets, will in turn constrain the capacity to generate GVA further down the food supply chain, thereby reducing overall levels of productivity.
Moreover, little analysis appears to have been undertaken on the direct costs of the dramatic expansion of the retail multiples to the public exchequer in terms of the expenditure impact of revised priorities for transport infrastructure, utilities, planning, environment, business rates and funding inducements. In contrast, the organic nature of wholesale markets offers a sustainable approach, where weaknesses are quickly identified, capital and credit demands are comparatively light, demands on public funds are specific and finite, although obviously provision of suitable sites is crucial.
Source: DEFRA
Agriculture & Fishing Food & Drink Wholesaling 11% Food & Drink Manufacturing 29% 8%
urbanisation commenced. It now encompasses warehousing, transportation, product consolidation and inventory management. The emergence of the large retail multiples, especially over the past couple of decades has seen the dominance of traditional wholesaling end, but it nevertheless remains a significant and key component of this supply chain. According to the latest available official information, total consumer expenditure in the UK on food, drink and catering services is equivalent to
182 billion annually. Food and drink wholesalers provide 9.3 billion of GVA per annum, supplying both the catering service sector and food and drink retailers. Given the size of the West Midlands economy (7.4% of national GVA), the equivalent figures are estimated to be close to 13.5 billion for the sector as a whole regionally and 688 million for the wholesaling segment regionally. Putting, the Birmingham Wholesale Markets into this context, their aggregate turnover is 275 million annually.
Exports (a) 15.9bn of which: Unprocessed 1.4bn Lightly processed 5.7bn Highly processed 8.8bn
Caterers (restaurants, cafes, canteens) Gross value added 20.4bn Employees 1,338,000 Enterprises 113,953 Catering Outlets 396,259
Food & Drink Retailers Gross value added 23.5bn Employees 1,146,000 Enterprises 52,552 Stores 91,509
Food & Drink Wholesalers (includes agents) Gross value added 9.3bn Employees 180,000 Enterprises 15,326
Food and Drink Manufacturing Includes everything from primary processing (milling, malting, slaughtering) to complex prepared foods. Many products will go through several stages. Employees 382,000 Gross value added 23.9bn Enterprises 7,261 Manufacturing sites/factories 9,480
Excludes sectors downstream from food & drink manufacturing such as food, drink, supply & processing industry
Of which: Billingsgate (fish) Borough (fruit & veg) New Spitalfields (fruit & veg) Western International (fruit & veg) Smithfield (meat) New Covent Garden (fruit & veg)
Derby
Leicester
Nottingham
Liverpool
Manchester
Blackburn
Preston
Bradford
Sheffield
Leeds
Hull
Bristol
Brighton
Southampton
Gateshead
N Ireland
Wales
Scotland
Belfast
Cardiff
Glasgow
three primary markets; Yorkshire (population 5.3 million) has four markets; the North East (population 2.6 million) has one, some define, two markets; the East (population 5.8 million) none and is probably serviced by the six London markets (population 7.8 million) which serves a significant proportion of the South East (population 8.5 million), which has two markets at Brighton and Southampton. The South West (population 5.3 million) is serviced both from Bristol and Southampton Birmingham alone services the West Midlands population of 5.5 million, as well as the mid-third of Wales and the northerly parts of the South West. Accordingly, of all the English regions, as well as the UK as a whole, Birminghams catchment area is by the far the greatest, and moreover as the largest integrated market, offers the most diverse range of produce.
I grew up being taken to the markets. I have seen the area evolve and the people grow with it. Birmingham City Council does not seem to realise the implications of their actions. Geographically the market serves to cities and towns across a massive patch of the UK Glynn Purnell
A National Contribution
Despite the caveats regarding the comprehensiveness and reliability of data on the sector, both the retail and wholesale markets continue to make a considerable contribution to the wider economy. In the 2009 research undertaken by the Retail Markets Alliance, as part of the Markets 21 project, calculated that the annual contribution to the economy in 2009 was of the order 7.6 billion. Of this some 3.5 billion of turnover was attributed to retail markets and 4.1 billion to the wholesale sector. The 25 identified primary wholesale markets (in the United Kingdom as a whole) provided fresh produce to 1,124 traditional retail markets, which comprise approximately 46,000 retail traders who employ 95,000 people directly. Of the 25 recognised
wholesale markets, these comprised 1,000 wholesale businesses employing an estimated 10,000 people directly. With 73 wholesale traders, the Birmingham Wholesale Markets constitute 7.5% of the total traders nationally, employ over 10% of the total wholesale labour-force, generating close to 7% of the national wholesale market turnover. Assuming retail market traders secure the bulk of their saleable produce from wholesale markets, the Birmingham Wholesale Markets most probably support close to 100 retail markets, and although farmers and country markets have limited interaction with Wholesale Markets, the catchment area most probably encompasses close to 2,000 retail traders. Accordingly, assuming an average number of employees working for each
of these traders of 2.5 full-time equivalents (FTE), at least some 5,000 FTE jobs are supported by the Birmingham Wholesale Markets. Further research would probably suggest that given the considerable distance between Birmingham and neighbouring wholesale markets, and its integrated structure, that it serves a greater number of local retail markets, than neighbouring ones and thus the employment multiplier for Birmingham is much greater. Other than direct employment staffing market stalls, there are obviously an array of related ancillary and support activities (listed below). It can be conservatively estimated that a minimum of a further 0.25 FTEs per retail trader are reliant on the Birmingham Markets, a further potential 500 FTEs within the catchment area at risk from dislocation of continued activity of the markets.
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EU Policy Issues
At a European Union level, it is argued that the wholesale and retail food sector is itself still undergoing a period of structural adjustment, a result of changes in not only consumption patterns due in part to demographic shifts but also as a result of the new demand structures within the economy. This has intensified shifts talking place as a result of globalisation, changes in product technology and new methods of organising the supply chain. At a EU-level, the food industry is characterised by considerable diversity of firms and products, with small and medium-sized enterprises occupying important sectoral roles in addition to a relatively small number of very large, often globally operating companies. On the one hand, the food industry sector is relatively traditional, while on the other hand it implements advanced technologies. The EU recognises that wholesalers, along with retailers and food service companies remain significant links in the food supply chain. Indeed the EU suggests that the number of wholesalers and food service companies increased while the number of food industry enterprises and retailers decreased. The food supply chain connects three important sectors of the European economy agriculture, the food processing industry and the distribution sectors that together make more than 5% of European value-added and 7% of employment, representing an estimated 16% of European households expenditure.
The Markets provide an essential source of diversity in the food-supply chain, and are key component in ensuring security of supply. Gisela Stuart MP
According to the EU, the functioning of the food supply chain takes on increased importance in the path towards recovery from the current economic and financial crisis. High food consumer prices are a source of concern because they put pressure on household incomes in particular now at a time when an increase in consumption is needed. They are particularly hard on the most vulnerable households who spend a considerably greater proportion of their income on food. In the longer run, a better functioning food supply chain is crucial for consumers and for ensuring a sustainable distribution of value added along the chain, thus contributing towards raising its overall competitiveness. Improvements are needed urgently to avoid an escalation of consumer food prices as the recovery sets in. The EU has observed that the supply chain creates value and delivers it to customers, but it is configured by a set
of discrete activities and processes. The organisation of the food supply chain is a modular structure, between food producers, wholesalers and retailers, whereby relations between buyer and seller are entered into freely, to facilitate a mutually satisfying exchange over time, which leaves the operation and control of the two businesses substantially independent. However, the demand driven supply chain forces the suppliers to comply with the preferences of the supermarket. Yet within the EU, the number of wholesalers is still increasing, as is the turnover. The most important wholesalers are in the non-specialised group with the largest turnover, followed by wholesalers of unprocessed fruit and vegetables. The EU noted that the logistics for fresh produce is extremely critical due to the perishable nature of these products. The salvage value of last weeks or in many cases even yesterdays products is zero or even negative (waste).
Dairy 1% Poultry 9%
Meat 6%
market-practice adopted by wholesale fresh produce markets globally to ensure that their business and infrastructure strategies are sustainable. Indeed, in many respects, the Birmingham Wholesale Markets are a model that others seek to emulate. Despite the pessimistic assumptions of the 1994 Strathclyde Report, which forecast terminal decline of markets, Birmingham has repeatedly demonstrated a capacity to innovate and respond to shifts in market and consumer demand. Although, there has been an erosion of occupancy rates, of the 100 plus units available, over three-quarters are in operational use, occupied by 73 companies, this is a much a reflection of site management, as it is of actual performance and economic demand. The protracted uncertainty over what option will be adopted for development of the Markets consideration has been under review since at least 2006 has deterred potential new entrants to Pershore Street, an inhibition that has been exacerbated by the fact that renewal leases have yet to be issued.
As a result, it is difficult to assess the potential performance of the Markets, given the constraints on the potential dynamism and vibrancy. It is important to recognise that with an average turnover of 3.6 million, the traders are substantive mediumsized companies. Structurally, the companies range from component parts of large national corporations to independent wholesalers. As a result, there is an inherent infrastructural sensitivity of the Markets, that needs to be managed appropriately to ensure the traders operate within a favourable and facilitative business environment. With aggregate turnover of close to 275 million, the Markets as a whole are a substantive economic entity in their own right. With 37 fruit and vegetable trading companies, the horticultural section is the predominant sector in terms of annual turnover with 53% of the total. The next largest contribution is from companies involved in the trading of fish, providing 22% of total turnover, comprising one eighth of all companies, The other sections of the market, Flowers, Poultry, Meat and
Birmingham Markets are measured globally, or at least on a European level, and so shifts to alternate destinations could be comparatively easily accommodated. Nevertheless, with over 2,400 heavy and light deliveries per trading week, an employment multiplier in the logistics sector of 0.5 FTE seems reasonable, adding a further 1,200 FTE dependents. Given the number of companies operating on the site, ancillary jobs are probably a similar ratio to that in the retail markets
Fish 14%
Other 4%
Source: BWFPA
Meat 9%
Dairy comprise a smaller number of companies but perform strongly. The obvious advantage of having so many traders of such diverse fresh produce is that the arrangement allows purchasers access to almost the complete range of goods required for their operations. This is particularly the case for the Chinese, Asian and other ethnicallythemed restaurants and shops (including a number of the specialist wholesale suppliers and local supermarket chains) as well as for the diverse communities that make up the City. Employing 1,100 FTE directly on-site, the employment footprint in the City centre is significant and is probably one of the largest in the private sector. In addition to the off-site FTE (listed above) supported in the retail markets sector of an estimated 5,500, significant levels of other employment is supported. According to Birmingham City Council, close to 5,000 independent local businesses in the retail and catering outlets rely on the wholesale markets, assuming a FTE job dependency on the Markets of 1.5 (based on anecdotal conversations with leading
restaurateurs and convenience stores), this gives an employment multiplier of 7,500. Furthermore, given the price differential between wholesale and retail sourced goods, the small independent sector is particularly vulnerable to what would amount to a price shock of a magnitude of 30-40% (excluding transport costs), if access to the Wholesale Markets became constrained. Such a price shift would not only jeopardise employment opportunities but the actual commercial viability of many of these SMES. Many restaurateurs in the City, have said that to lose access to the markets, would put a minimum of 2 per dish they serve. Furthermore, a little quantified or comprehensively understood aspect of the Markets, is the capacity to act as a source of working capital, with a number of buyers requesting up to twelve weeks credit from traders against the norm for established small purchasers of four weeks in other sectors. Beyond the demand-side of the equation, quantifying the supply-side employment dependency is more
sector (0.25) then another 20-30 FTE jobs are dependent. While these data are provisional, and more detailed analysis of the multiplier impact in each of the different components of the business needs to be undertaken (given the use of anecdotal evidence), it can be conservatively estimated that at least 15,000 FTE jobs are dependent in some form on business conducted with the Birmingham Wholesale Markets. In recent years at a sub-national level, the number of secondary wholesale and retail markets has declined. This has paradoxically increased the importance of the Birmingham Markets, benefitting from its geographic location, favourable transport links, range of products, the competitiveness and knowledge base of the traders, effectively creating a wholesale economic cluster. As a result, the Markets have established itself as one of the pre-eminent markets nationally, with the Markets the largest integrated wholesale markets in the UK. This has been reflected in the progressive widening of the Markets opening
600,000 500,000 400,000 300,000 200,000 100,000 0 Fruit & Veg Flowers Dairy Poultry Fish Meat Other
Source: BWFPA
hours, which is now officially 4.00 am, but with activity brisk much earlier. According to the Council there are approximately 13,000 customers visiting each week, this probably masks a significant consumer tourist potential. Internally, the Markets provide a major source of competition which controls prices and allows retailers to choose their supplies by reference between one trader and another. Customers travel to the Birmingham Wholesale Markets from a considerable distance, but in the majority of cases from the West Midlands area and a travelling time of up to one hour.
The Markets provide a mode of access to the formal economy for many young people, whose qualifications attainment and residential location would normally deny them such access in other sectors. While the role of the Markets is not to compensate for the failings in other sectors of society, this beneficial consequence should not be underestimated or the implicit role in fostering social cohesion. Quite rapidly new entrants into the Markets labour force, become attuned to the arbitrage potential the Markets provide and many have ultimately progressed to become long-standing successful entrepreneurs. This is reflected in the turnover per employee, which compares favourably with other sectors of the economy.
Horticultural Section
The fruit and vegetable traders form the largest component of the Markets, at 25,300 sq metres, occupying two legs of a basic Y shape. Internal roadways provide access for buyers while deliveries are made around the perimeter of the building. The internal roadways have a clear span of 15 metres and the depth of each stall is 28 metres including an unsecured night unloading area. There are two basic sizes of units with frontage of either 7.2 or 5.5 metres. In order to accommodate smaller companies, a number of basic units in the central area have been divided into small halls. Improvements in 1995 now mean the markets meet EU Hygiene of Foodstuffs Directive standards. The Horticultural Market is a large single-storey building, office facilities are provided along the perimeter at mezzanine level. At a national UK level, despite government efforts to promote greater health awareness and associated with that greater consumption of fresh fruit and vegetables, consumption of fruit
Fruit & Vegetable Market (000 tonnes)
9000 8000 7000 6000 5000 4000 3000 2000 1000 0
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Fruit Imports
Source: re:fresh 2011
UK Fruit Production
Vegetable Imports
UK Vegetable Production
and vegetables has remained relatively stable, at between 750,000 to 830,000 tonnes in recent years. While the EU forecasts a significant upward shift in consumption patterns, there is only a finite level of demand, related to population level. While there will be some growth as fruit consumption improves, potential for a shift in the demand structure is most likely to be as a result of price competiveness. As the table indicates, the Birmingham Wholesale Markets are always going to be competitive with the main retail
Tesco 28.3p 166p 64p 76p 56p Asda 27.0p 133p 108p 76p 56p Sainsbury 39.0p 166p 100p 80p 56p
multiples, given their much lower capital input requirements. Accordingly, given the shift in demand patterns, the Markets are in a positive position to take advantage of new trends. If this is supplemented by a more assertive strategy to source local produced equivalents as the Markets have been instrumental in sourcing Staffordshire-grown Pak Choi the increasing consumer preference for sustainability should provide a new stream of opportunities.
Type Price per loose Orange Golden Delicious per kg Price per Avocado Price per loose kg Price per loose kg
Prices surveyed mid-November 2011, from national supermarket source websites. Nearest comparable product and quantity for price used, with basic range products surveyed. Prices are illustrative, subject to change, and should be used accordingly.
Fish Market
The Fish Markets, with an available trading area of 1,500 sq metres, are in a two-storey building of 36 units and similar in design to the Meat Market with the same layout at first floor level. The Fish traders have responded dynamically to the major changes wrought on High Streets over the past few decades with the large scale disappearance of independent fishmongers by offering a range of bespoke services to catering companies and increasingly to independent restaurants and food outlets. The timeliness of delivery and quality of produce ensures that the Markets continue to enjoy their centuries old reputation of selling the freshest fish in England, despite being the furthest from the sea and major fishing ports. This capability to deliver quality, in contrast to other alternate outlets, has substantial benefits for the local restaurants as they attempt to increase GVA and in particular develop high-value quality cuisines as attested by the fact that Birmingham was acclaimed as Olives Food Capital of 2011. A key factor in maintaining this will be the markets ability to source sustainable fish produce, a feature that become of increasing importance to consumers. There has already been a major shift in terms of the landed fish catch. Nevertheless it remains the fact that it is on price competitiveness, that the Fish Markets will be able to achieve increased market penetration, as demand for fish has remained stable, despite the depth of the recession. With additional processing capacity, the Fish Market additionally offers a source of value added to the food chain.
Proportion of Landings of Sustainable Fish (UK Vessels)
800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0
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Prices surveyed mid-November 2011, from national supermarket source websites. Nearest comparable product and quantity for price used, with basic range products surveyed. Prices are illustrative, subject to change, and should be used accordingly.
Meat Market
The Meat Market comprises an area 3,500 sq metres, structured in a two storey building with 34 units and a central, chilled buyers walk at ground level. The Fish, Poultry and Meat Markets are the most capital intensive operations in the Markets, requiring considerable inputs, in terms of refrigeration, cold storage and handling infrastructure to ensure the quality of produce delivered. The Market meets the EU Red Meat Directive standards, requiring the installation of chilling and docking bays in 1996. Similar to the experience of the Fish suppliers, the Meat traders have had to offset the impact of a declining number of independent and small-chain butchers on the High Street, by providing meat to restaurants and caterers. In the meat sector there has been an aggregation of businesses so these are now often controlled by national companies. As is evident in other areas of fresh produce provision, the demand for meat nationally has remained relatively constant, although national production has yet to fully recover from the Foot & Mouth crisis. Along with other sections of the Markets, the meat market should be able to be sustain growth through quality and price.
Source: DEFRA
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Sows & Boars Ewes & Rams Cows & Adults Bulls
Type Topside Joint, price per kg Leg Joint, price per kg Joint, price per kg
Prices surveyed mid-November 2011, from national supermarket source websites. Nearest comparable product and quantity for price used, with basic range products surveyed. Prices are illustrative, subject to change, and should be used accordingly.
Poultry Market
The Poultry market occupies an area of 1,500 sq metres, sharing the same block as the Fish market. The Poultry and Egg traders have also restructured their operations to meet the shifts in demand and the demise of many retail outlets on the High street - providing restaurants and independents with poultry products. With demand for poultry products relatively stable it will be through price competiveness that the traders secure business growth. As is the case for the other sections of the Markets, origination and supply for many Local Authority and Institutional bodies, most especially schools, colleges and Universities, by the Poultry Markets has become an increasingly significant component. With continued fiscal retrenchment, and the increasingly acute requirements, on the part of purchasers, to source quality and value, the Markets role can only be expected to strengthen.
UK production and supply of poultry meat
700.0 600.0 500.0 400.0 300.0 200.0 100.0 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 0.0
Exported
Source: DEFRA
Imported
UK Production
Type Breast fillets, price per kg Whole, price per kg Large, price per egg
Prices surveyed mid-November 2011, from national supermarket source websites. Nearest comparable product and quantity for price used, with basic range products surveyed. Prices are illustrative, subject to change, and should be used accordingly.
Flowers
The Flower traders section occupies the third leg of the Y in the Horticultural Halls. While all sections of the Market operate sophisticated global sourcing arrangements, the Flower section is the only one that participates real time international auctions in both The Netherlands and North America, offering considerable potential price competition. According to analysis from the Flower and Plants Association, the flower traders are likely to be the biggest beneficiaries of future shifts in consumer consumption patterns., The Association states that the UK fresh cut flower and indoor plant market is worth 2.2 billion at a retail level, somewhat greater than the British music industry (widely regarded as a leading industrial sector), which contributes less than 2 billon per annum. The average floral spend per person spend per person is 36. Although this represents significant growth over the past few decades (in 1984, per capita expenditure was calculated at 8), it does not match patterns of expenditure within the wider EU. European consumers are reckoned to regularly spend 60-100 per capita per year on cut flowers and indoor plants. There is thus considerable upside potential and again price competitiveness will be a key a factor.
Belgium pot plants Canary Islands chrysanthemums, roses Caribbean tropicals, foliage Chile carnations, roses Colombia standard & spray carnations, roses Denmark pot plants Ecuador carnations, roses Holland all flowers & pot plants India roses Israel roses, gypsophila, waxflower, anigozanthos. All summer flowers Italy carnations, chrysanthemums, foliage, foliage plants Kenya roses, carnations, spray carnations, statice Malta chrysanthemums, Paper White narcissi Morocco spray carnations, chrysanthemums Thailand orchids Turkey spray carnations Venezuela carnations, roses
Source: Flowers & Plant Association
Future Prospects
The economic downturn has been a painful experience for many not just the Markets. However, the proposed rebalancing of the national economy offers significant opportunities for growth of the Birmingham Wholesale Markets and an expanded role as a vital part of the national food-supply chain. The Markets will continue to be a principal source of fresh produce for all the diverse communities of the City, and an essential component of our multicultural City.
Investment into the Markets is required to maintain our role and our capacity to support sustainable growth of the City. There is much latent demand for access to the Markets, and future investment would indicate a commitment to our longer term future and enable the Markets to tap into this unrealised demand. As a vital part of the ecology of the food supply chain, and the ecology of all the local markets, we provide a platform for new businesses to
The markets have been the beating heart of Birmingham for centuries. They remain vital for a city that should value all of its peoples and a sustainable future Professor Carl Chinn
establish themselves, both as our customers and potentially as traders on the market, without the barriers to entry common in other areas business. Working together with the City Council, we believe we can deliver a Wholesale Market designed to support the demands of Birminghams role as a leading international City and provide a stimulus to growth.
Floristry
Birmingham Flowers (J Large) Bloem-Flora CMT Flowers Midland Flower Co Ltd Newnes Ltd Whittingtons Silk Flower
Meat
Ted Collins Meats Ltd George Dobson & Co Fitzgeralds Meats Ltd Heart of England Catering Butchers 2000 Ltd KMC Food Group
Dairy
Manor Lodge Dairy Products
Poultry
Allens 03 (Poultry) Ltd H Bellingham Ltd Birmingham Egg Market Brymay Caterers Ltd Tom Carr Ltd PJ Poultry Ltd Super Egg Ltd
Catering
Arthur Brett Catering Georgios
Packaging
Nardean Ltd
Fish
Caterfish C & K Ebanks Ltd John Owen Salmon Inc WS Scott & Co Ltd SPI Tudor Seafoods Ltd J Vickerstaff & Co Ltd B A Westwood
Dont forget to collect your window sticker next time you visit us and join our supporter list online at www.birminghammarkets.co.uk You can also get in touch at: Birmingham Wholesale Fresh Produce Association Unit 76-77 Wholesale Market Pershore Street Birmingham B5 6UN United Kingdom
Disclaimer: This report was written and compiled by Paul Forrest, Forrest Research Limited, as part of the technical assistance programme provided by Technolink UK Limited to the Birmingham Wholesale Fresh Produce Association. The analysis presented in this report accurately represents the personal assessment of the analyst(s) and no part of the compensation of the analyst(s) was, or will be directly or indirectly related to the inclusion of specific views in this report. The information contained, and any views expressed, herein are based upon data currently available within the public domain. The contents of this Report are not a substitute for specific advice and should not be relied upon as such. Accordingly, whilst every care has been taken in the preparation of this publication, no representation or warranty is made or given in respect of its contents and no responsibility is accepted for the consequences of any reliance placed on it by any person. Further information is available on request. Written by Forrest Research, www.forrestreearch.co.uk Commissioned by Technolink (UK) Ltd, www.technolink.uk.com Designed by Rye Design, www.ryedesign.co.uk Printed by Express Printing, www.xpressdesignandprint.co.uk Photography by Jermane Clarke, www.ionephotography.co.uk 2011 Birmingham Wholesale Fresh Produce Association.