The Rural Voice, 2004-09, Page 33And despite the fact it drives
down the buying price it's also bad
news for the canner, Dickinson
maintains. He bought some beans on
the Internet auction and had problems
with quality. Auctions create
problems with quality, service and
traceability, he said.
"It's not about the price through
the factory gate," he says. "It's about
the cost into the can." If the factory
loses its efficiency due to poor
quality beans, any savings on raw
materials are lost.
"Premier Foods does not intend to
use Internet auctions to buy navy
beans." he said. "It will not
encourage what we want to
encourage."
nstead the company sees
contracting as the solution to its
goal of consistent quality, food
safety, traceability, and identity
preservation.
It will bring market stability for
both the company and growers he
says because both buyers and sellers
seldom get the best prices in a
fluctuating market.
"If this happens as Hensall and I
hope it will, we'll have specified
Premier Foods growers," he said.
"We're going to know where the
beans come from and you're going to
know where they went."
Growers will have to meet a
specific set of criteria and they won't
be able to sell if they don't.
Dickinson said he arrived in
Canada worried about how this
message would be received but in
talking to growers he got the message
that Canadian growers were already
taking these steps and waiting for the
processor to catch up on quality
control and traceability.
HDC will test and certify the
beans before the product is loaded,
eliminating that step at the factory.
Hensall Global Logistics will provide
just -in -time delivery of containers to
Premier's plant in the U.K.
The co-operation will extend to
testing of new bean varieties by the
canner to make sure beans will work
within the system.
"It's not just about the price: it's
the whole package," he said.
Pryde said he's hopeful there will
be a substantial acceptance of the
contract concept among Ontario
growers within two or three years.0
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SEPTEMBER 2004 29
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