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Supply Chain Efficiency Scheme


Brief description of the instrument and its modus operandi

The key aim of the Supply Chain Efficiency Scheme is to assist farmers, growers and foresters in developing a collaborative, supply chain-focused initiative by providing the capacity building support that is not available through any other mechanism. http://wales.gov.uk/topics/environmentcountryside/farmingandcountryside/ruraldevelopment/axis1/110713supplychainefficiencies/?lang=en The Supply Chain Efficiency Scheme is an important element of the Rural Development Plan for Wales 2007-2013 (RDP) Axis 1 – the competitiveness of agriculture and Forestry. It is part funded by Europe and by the Welsh Government. It is designed to help move ‘embryonic’ supply chain partnerships to a stage where they are confident to adopt a new supply chain process leading to greater tangible and intangible benefits. It would increase the capacity of producers to take costs out of the supply chain, improve marketing capability and ensure future sustainability. // The scheme also covers benchmarking. This is a business tool that allows businesses to review their strengths and weaknesses and compare themselves with counterparts in the same business area. It will ensure the accurate collection and collation of farm and forestry business data, which will enable effective benchmarking of Wales agricultural, horticultural and forestry sectors. Benchmarking has proven potential to improve business competitiveness and sustainability. // The scheme provides the capacity building support that is not available through any other mechanisms and will result in: a) Increased capacity of producers to take costs out of the supply chain; b) Improvements of the producers marketing capability; c) Ensuring future sustainability of producers. D) Any individuals and organisations involved in co-operation projects that will develop new products, processes and technologies in the agricultural, forestry and food sectors including: e) Voluntary sector organisations; f) Private and public limited companies, across all sizes of operation; g) Public bodies including Local Authorities; h) Third party bodies involved in agriculture and forestry. // The scheme is delivered on behalf of the Welsh Government by Menter a Busnes, a private business development company and is a grant scheme that can support between 50 and 100% of eligible costs depending on area and scope of project.

Which problem the instrument is supposed to solve?

World-wide competition is affecting the development of the Welsh food and drink processing and manufacturing industry and forestry business sector. It is evident that competing on price alone provides some significant challenges for the industry, so innovative approaches in developing new products, processes and technologies as well as increasing quality and added value are key development areas, together with support for marketing and branding. The continued backdrop of low prices for farm produce and falling agricultural incomes, improved co-operation is recognised as a key means of increasing economic returns in rural areas. A key ingredient in the improvement of co-operation is increased communication and integration between supply chain partners. Previous EU supported programmes have focused on improving the marketing of agricultural products but did not attract the target audience most in need i.e. primary producers collaborating to improve the marketing of their produce. In the main, direct beneficiaries have been processors and packers with well-established administrative systems and support and more control over resources, whereas producers are not maximising the benefits under such schemes. There remains a need to nurture a collaborative ethos between primary producers and with processors/end users and creating an effective culture of collaboration and integration with stakeholders will add considerable value to the supply chain.

Purpose or main objective / overall goal of the instrument?

The key aim of the scheme is to assist farmers, growers and foresters in developing collaborative and supply chain-focused initiatives. These initiatives will provide the capacity building support that is not available through any other mechanisms.

Side objectives/goals of the instrument?

Support for sectors unable to access mainstream funding. Growth and stability in markets and economy of rural areas.

Innovation content or potential of the instrument?

Instrument has potential to assist development of relevant sectors as it works at all levels of supply chain from pickers to processers and retailers, so can give truly holistic support. Should be able to improve efficiency, viability and sustainability as long as actors in supply chain are prepared to work together

Which laws and regulations support the implement of this instrument?

Rural Development Plan for Wales 2007-2013

The initiator/promoter of the instrument?

Government agency: Key part of RDP Wales 2007-2013 programme targeted specifically towards agriculture and forestry sectors. It is run under contract to WG by a private business development and support company with many years’ experience in supporting rural businesses to grow and develop in Wales

Which organizations are involved in the operationalization of the instrument?

Menter a Busnes delivers the scheme on behalf of Welsh Government. They work closely with other support providers in the rural areas of Wales.

What roles do these organisation play in each of them?

Welsh Government - Governing Body. Menter a Busnes -delivery body How the monitoring is ensured?

Monitoring is on two levels: monitoring of performance of scheme as a whole by Welsh Government. Progress against targets for no. of schemes supported etc.., and monitoring of individual projects by Menter a Busnes – the same criteria will apply as regards progress of project against targets as et out in the business case for the project submitted as part of the application.

How the compliance is ensured?

Not enforcement as such, but targets have to be met in order to ensure payment of grant.

How is the overall performance of the instrument?

A total of 36 projects have been approved so far, of which 5 are Knowledge Transfer. These will result in £32 million worth of investment and a total grant of over £31 million. All the projects are detailed on theYou can find projects in the SCE Project Map) which displays project locations around Wales. There are also details of all approved projects in the Project Summary Report. http://wales.gov.uk/topics/environmentcountryside/farmingandcountryside/ruraldevelopment/axis1/documents/sceprojectsummary/?lang=en

Brief description of the context for the emergence of the instrument

Instrument emerged as a consequence of evaluations of previous RDP programmes and due to the difficulties faced by businesses and organisations involved in then agriculture and forestry sectors in rural areas as identified in question 6

Have any of the items mentioned above changed since the instrument entered into force?


Is there any qualitative or quantitative study of the impacts of the instrument?

Yes, please specify


See project summary for more details on the impact of the individual projects – there will also be a final evaluation of the scheme in the next 18 months.

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Full reference
Supply Chain Efficiency Scheme

Year 2007
Policy area Rural Development
"Rural Development" is not in the list of possible values (Agriculture and Rural Development, Biodiversity and endangered species policies, Food safety, Forestry, Fruit and vegetable regime, Intellectual property rights, Plant health and biosecurity, Product labelling and packaging, Research Programmes, Green public procurement) for this property.
Affected activity Marketing/trade, Harvesting/Production, Use/consumption
Affected actors Landowner/land manager, Producer/beekeeper, Picker/harvester/hunter, Processor, Retailer
Products Other NWFP
Subject NWFP
Promoter/initiator Public
Zone North West Europe
Countries United Kingdom
Regions (NUTS 2) West Wales and The Valleys
Focus on NWFP
Document category
Instrument type Economic, Information
Legal status Non-binding
Geographical scope Regional
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