FSDF President Malcolm Johnstone Speaks at Centenary Lunch
May 23, 2011
In his capacity as FSDF President for 2011, ACS&T Managing Director, Malcolm Johnstone, addressed members at the Centenary Lunch. In his speech, Malcolm looked back over the many changes and challenges the federation has faced and adapted to over its rich history. He also spoke about the important role the federation has in the future, to ensure that it continues to provide food distribution and supply to the nation for another 100 years. Below is a copy of the full address.
As president of the Food, Storage and Distribution Federation, it is my honour to say a few words on this key anniversary. The Federations inception 100 years ago, not far from where we now sit, was an industry response to the increased complexity of food supply, storage and preservation with the growth of cities and the introduction of mass market food.
There was no household refrigeration and little ability to keep fresh, dairy produce, meat and fish.
Households would have the “cold marble slab” in the pantry or buy ice from Municipal authorities or private merchants who would sell from street to street. Large scale food producers would have ice manufacturing suppliers to allow some degree of temperature control and preservation of freshness. A fragmented situation.
The original title of the federation, The Association of Cold Stores, Proprietors and Managers was the first attempt to capture a diverse group of businesses with differing markets. There have been many name changes since, culminating in the most recent attempt to embrace the activity of Food, Storage, Distribution and surprisingly enough also being a federation!
The challenges faced by the founders of 100 years ago, ensuring the availability of capacity, the control of temperature and the adding of value through the dimension of space are still with us today. We just happen to have “sexed” it up by calling it food logistics.
Looking back across the past century, common themes emerge.
A key one has been the availability of Food to ensure that in the event of an interruption in supply, people are still fed.
Whether that arose due to international crisis such as the U-boat menace in the First World War, the need to ensure national food supply in the run up to the Second World War or even domestically with the distribution of food in the winters of 1947, 1963 and recently within this last year 2010.2011.
For the industry to be of such strategic historical importance to the Government and the nation, it is disconcerting given the present situation. We have all heard the old story of the Government Inspector wishing to see the “strategic” food stocks in the coldstore, to be shown empty racking and being told, “There is none”.
Whilst no one can predict an international crisis similar to those we have seen over the last century, we can be certain that even with global warming, it will snow again, although where and when is more problematic.
Rate cutting is not new. Uneconomic storage rates were common in the twenties and thirties.
Although the management of these, were conducted through the federation who set the rates. For the Federation the managing of relationships between market competitors was significantly easier prior to the monopolies commission.
Insufficient return on capital, to build new facilities has been evident in the minutes of the federation meetings across multiple decades. The demise of the industry was being predicted in the thirties. Although the need for the industry became apparent to the Government with the storm clouds of war over Europe.
There has been a constant need for adaptability of the industry and the Federation when faced with change.
For the sector, the advent of domestic refrigeration and the arrival of frozen and chill food resulted in demise of the Municipal Ice makers, the growth of retail frozen food and the importance of the consumer.
The demise of the national railways infrastructure alongside the growth of motorways brought about the arrival of stock and manufacturing centralisation and the growth of large distribution fleets. Members grasped the opportunity by investing in new services. The Federation added transportation to its capability.
For the Federation the advent of lobbying became increasingly important. Advising Government and the law makers to ensure the most effective legislation to meet their objectives has become a key task for the Federation office. The initial success of the Climate Change Agreement and its subsequent extension demonstrates the value of the FSDF.
What of the next 100 years?
The chicken you have eaten today, more than likely came from Brazil. Fish landed in Europe is often sent to Thailand for cleaning and then returned to the UK for adding to chill dishes. Seasonal food is often frozen and then tempered to be sold in the chill cabinet. Food miles and global protein movement are common operating practices for manufacturers who provide mass market food supply. For Food Logisticians complexity is commonplace. For the Federation it requires the need to advise on international trading agreements and practises.
But with the increasing in price of oil, the shortage of food stocks to meet global population growth and the change in demand for protein through the increasing wealth of the like of China, Professor Alan McKinnon’s observation that we are 7 meals from starvation due to the lack of resilience in the supply chain may have an uncomfortable ring of truth about it.
For the Federation, one thing is certain, economic and legislative change creates an even greater need for the industry to have a voice at the highest levels to ensure that if we are expected to maintain food distribution and supply to the nation then we have the best opportunity to meet that demand.
As a member of FSDF, and having the honour of being its president in this its’ centenary year, I am aware that all of the sector must support the Federation, allowing it to flourish and continue to do its good work, as it has in the past. We are beholden to our Federation predecessors who passed the baton of responsibility to us that we in turn, can pass it on to those who come in the future.
Therefore on that note, Ladies, Gentlemen, please charge your glasses, be upstanding and drink a toast to the next 100 years of the FSDF.