Business Plan 2010 – 2013 October 2010

The Community Farm – A farm for the future

In past generations agriculture was deeply embedded in our lives. Agricultural events often involved the whole community and we responded instinctively to the needs of the land and to the gifts we received in return. Growing food is the very foundation of human life on earth.

Nowadays the world seems disassociated from agriculture and how we produce the food we eat. We can survive on food from places we have never visited or on food so processed the constituents are no longer recognisable. Farmers and growers have become increasingly specialised and intensive and dependent on working the subsidy system to survive. They too have become divorced from local communities, often growing a crop or producing meat for faceless markets. Farms have lost touch with their community and communities have lost touch with their farms and the seasons.

The world is changing and changing fast. If you are concerned about the future of the planet, the use of finite resources or just more interested in growing your own food – The Community Farm is for you.

The Community Farm is a not for profit, social enterprise project about the environment, food and most importantly, you and the local community. I am proud and thrilled to be involved in this project, feelings I hope and expect many others will share as together we create a special model of how food is grown, distributed and consumed.

David Hunter Chair of The Community Farm

The Community Farm Business Plan October 2010 2

Contents

1. Executive Summary 4

2. The Community Farm 5 Introduction Aims and Objectives Community Supported Agriculture Evidence of Need & Demand Population Strengths and opportunities Assessment of risks and threats

3. Development 9

4. Community Engagement 10

5. Milestones 16 5.1 Phase One: July 2010-March 2011 5.2 Phase Two: April 2011-March 2012 5.3 Phase Three: April 2013-March 2014 5.4 Phase Four: April 2014 onwards

6. Legal Status, Governance, Staffing & Operations 20

7. Marketing Strategy 22

8. Finances and Capital Requirements 27

9. Fundraising 38

10. Monitoring & Evaluation 39

Appendix A Evidence of Need and Demand Appendix B Strengths, Weakness, Opportunities, Threats (SWOT) Appendix C Memorandum of Understanding (MoU) Appendix D Start up budget Appendix E Biographies of Board members Appendix F Staffing Appendix G Valuation of box scheme 1.0 Executive summary

The Community Farm is a Community Benefit Society (CBS), owned and democratically controlled by its members. It covers 22 acres of land set in the Chew Valley between the urban populations of Bristol (8 miles) and Bath (15 miles).

The Community Farm aims to provide a direct link between the production and consumption of food. It aims to create a mutually supportive relationship between local farmers, growers and the diverse range of local communities in the surrounding area. It will be owned by local people through community investment and shares. It will create an economically stable, sustainably managed farm operation in which members are assured of the highest quality produce at competitive prices, and access to what will, essentially, be their farm.

The farm will grow organic vegetables and fruit; run a vegetable box scheme and wholesale operation. Through community activities, courses, volunteering opportunities and events it will enable local people to have access to locally grown, organic vegetables and fruit. They will gain knowledge on how to grow their own food, take responsibility for their own food purchases, get some hands-on experience and acquire new skills and share their own skills with the project.

Through this scheme members and investors will help sustain the local economy by supporting local farmers and growers and be involved in working towards achieving a self-sustaining low-carbon food and farming system.

This business plan is for anyone with an interest in the project, including:

• Funding organisations • Partner organisations • The Community Farm Steering Group • Members and founder members • Customers • Community Farm workers and volunteers • Local, regional and national government • Community organisations • Education providers

The Community Farm Business Plan October 2010 4 2.0 The Community Farm - Introduction

2.1 Introduction

Phil Haughton founded The Better Food Company in 1992 and for the last decade has successfully grown organic vegetables in and around the Chew Valley. These are supplied to customers through The Better Food Company’s organic supermarket in St Werburghs, Bristol and 300-strong home delivery vegetable box scheme.

In 2008 Phil Haughton met with Jim Twine and Luke Hasell, of The Story Group - organic farmers, who sell their beef and lamb locally in the Chew Valley and Bristol area. Through their discussions they soon realised they had a shared vision: to work with the surrounding community and play a small part in reshaping the way food is grown, sold and consumed whilst withstanding the pressures of diminishing natural resources, peak oil1 and climate change. This was the beginning of the development of a Community Supported Agriculture (CSA) scheme.

There are three essential elements to a CSA: • A land owner who is prepared to look at models of food production that engage the local community • A farmer or grower who is keen to produce food for the local community and respond directly to their needs • A local community with a real appetite to engage with the food they eat and to become members of the CSA.

Phil, Luke and Jim soon realised they had the first two of these three prerequisites and the momentum behind the Community Farm began to grow. The idea for the Community Farm was born: to involve local communities in developing a project that would see an increase in vegetable growing, a chance to learn skills and volunteer and to develop more sustainable methods of production.

A Steering Group of dedicated people was formed in the summer of 2009 to start to drive the vision forward and bring the project to fruition.

2.2 Aims and objectives:

Aim To create a community farm supplying organic (Soil Association certified) local, seasonal produce that has community engagement and environmental sustainability at its heart, building social capital for the future.

Objectives o Raise in the region of £170,000 through the launch of a community share offer by January 2011 in order to buy out the existing box scheme, growing and wholesale business from The Better Food Company with any additional investment creating the potential to accelerate the plans contained in this document o Hold first Harvest festival in September 2011 o Establish a range of courses by March 2012 o Increase the growing area to 50 acres by March 2013 o Have 400 members by March 2012; 500 by March 2013 o Hold at 12 Community Farmer / volunteer days for members each year

1 Peak oil is a phrase used to describe the situation when global oil production reaches a peak. Following this peak, oil supplies decrease and never rise again.

The Community Farm Business Plan October 2010 5 o Establish 10 pick up hubs by April 2012

Other main principles As well as these objectives the farm will also: • Produce the best local, organic and seasonal produce – certified by the Soil Association • Ensure membership is open to all sections of the local community (within the Bristol, Bath and Chew Valley areas) • Actively encourage an inclusive membership which reflects the cultural and socio/economic diversity of the local area • Ensure that all members, workers and visitors are treated fairly and the project adopts the principals of the Ethical Trade Initiative2 base code • Adopt an open door policy which will share knowledge and expertise with members, workers, visitors and other social enterprise projects • Create a model that can be transferred to other communities • Create a financially stable initiative, where surpluses are reinvested into the project

2.3 Community Supported Agriculture (CSA)

The Community Farm is categorised as a Community Supported Agriculture (CSA) project. There are many successful examples throughout Europe and the USA. Ten case studies can be found on UK initiatives on the Soil Association’s website3.

A CSA is important because: o CSA’s direct marketing gives farmers and growers the fairest return on their products o CSA keeps money in the local community and contributes to the maintenance and establishment of regional food production o CSA encourages communication and cooperation among farmers o With a ‘guaranteed market’ for their produce farmers can invest their time in producing the food rather than looking for buyers o CSA supports the biodiversity of the area and a diversity of agriculture through the preservation of small farms producing a wide variety of crops o CSA creates the opportunity for dialogue between farmers and consumers o CSA creates a sense of social responsibility and stewardship of local land o CSA puts ‘the farmer’s face to food’ and increases the understanding of how, where and by whom our food is grown 4

2.4 Evidence of need and demand

As indicated above, two of the essential elements to a CSA were already in place. This section describes why people would be motivated to get involved in the project and the work that has been done to substantiate that.

Why would people want to get involved in this project?

Some reasons include: o To enjoy locally grown, nutritious healthy vegetables

2 http://www.ethicaltrade.org/about-eti 3 http://www.soilassociation.org/Takeaction/Getinvolvedlocally/Communitysupportedagriculture/Casestudies/tabid/727/Default.aspx 4 www.localharvest.org

The Community Farm Business Plan October 2010 6 o To gain a positive sense of responsibility for their own food and food purchases o To support a local farmer and themselves o To help achieve a self-sustaining low-carbon food and farming system o To bring a little economic gain to the area o To gain some hands-on experience of growing organic vegetables o To be part of an active social group with a common interest o To share in the success of a new venture through volunteering skills and time o To develop experience and new skills

How do we know there is local interest? In September 2009 over 200 adults and children attended an open day at the land in Denny Lane. At that time 150 people expressed an interest in being kept informed about developments and membership.

In addition, volunteer days have been organised with smaller groups of people. These days have included working on the land and a workshop on ideas for the community farm.

The common motivator for involvement is food – it attracts people from all walks of life. Those who took part in the volunteer workdays have given a variety of reasons for wanting to be involved. They also made suggestions around: o Growing o Reconnecting with where food comes from o Learning and skill sharing o Recreation o Volunteering o Being part of something o Ideas for promotion and publicity

These can be seen in detail in Appendix A.

In September 2010 the Community Farm had a stall at the Organic Food Festival in Bristol. This drew in: o 71 enquiries about vegetable boxes o 36 enquiries about investment o 63 enquiries about becoming a member o 118 enquiries about volunteering

Population of the area The farm is based between two large urban populations, so has the potential to reach a wide and diverse audience.

The revised estimate for the population of Bristol since the 2001 census is 416,400. Of this 11.2% are black and ethnic minority (BME) populations. Bath has a population of 83,992 (2001 census) with a below average BME population with Chinese being the largest of these groups. The population for the whole of Bath & North East Somerset (the local authority area in which the farm is based) is 169,040 (2001 census).

With a population of more than 585,000 within easy reach of the farm, reaching even 0.5% of this population would equate to over 2,500 people.

The Community Farm Business Plan October 2010 7 With these local communities the farm is also presented with an opportunity to grow crops that reflect this cultural diversity, should the climate allow.

2.5 Strengths and Opportunities As part of the overall assessment of the project, it has been important to consider what is strong within the project and where the opportunities lie and also consider the risk factors and any potential weaknesses so that these can be addressed at an early stage before they become problematic.

The scheme has many strengths and opportunities. A SWOT analysis (strengths, weaknesses, opportunities, threats) has been carried out as part of the development of this project and is shown in Appendix B.

The Farm has an agreement to lease the 22 acres currently under cultivation by the Better Food Company at Denny Lane, Chew Magna. It also has the option to lease an adjoining 28 acres from April 2013. This is Grade 1 agricultural land, which offers a real benefit to the scheme.

Other strengths include ongoing involvement from successful businesses such as The Better Food Company and The Story Group. There is an existing customer base for approximately 300 boxes as well as wholesale customers. A Memorandum of Understanding (MoU) between the Community Farm and The Better Food Company will ensure a continued trading arrangement and mutual support. See Appendix C for details.

There are significant educational, skills sharing and volunteering opportunities to encourage a wide and diverse range of communities to get involved with the farm. There is also an opportunity to produce a range of vegetables for the diverse ethnic populations of the area, including Asian and Caribbean vegetables, using the polytunnels, and climate permitting.

Risk factors have been considered through potential weaknesses and threats in the analysis. Whilst they are identified here, the Community Farm will be pursued in such a way as to keep all these risks to a minimum. The Community Farm will work hard to maintain existing customers and encourage them to become members, the MoU with The Better Food Company provides longer term support should the target for fundraising not be met initially.

If the Community Farm raises £55,000 but less than £100,000, it will proceed with the purchase of the box scheme, growing and wholesale businesses and buy the assets from The Better Food Company as soon as funds are available. If the Community Farm raises over £100,000 but less than £170,000 we will look to raise the balance in the next 12-18 months. This may be by a further offer of membership, or through grants or loans depending on what is best for the business of the Farm.

3. Development

Initially the Community Farm will offer three alternative means for the community to engage with it: investment and membership opportunities; organic vegetables through a box scheme and wholesale business; and farm based activities.

The three key steps that need to take place in order for the community farm to become established as a membership organisation are as follows:

The Community Farm Business Plan October 2010 8 1. Launch of a Community Share Offer to raise start-up funding of £250,000 and to build the membership.

2. Purchase, by the Community Farm, of the existing assets associated with the organic vegetable growing operation, wholesale business and box scheme that is currently owned and managed by The Better Food Company. Take on 10-year Farm Business Tenancy for the land from Luke Hasell.

3. Purchase, by the Community Farm, of essential further equipment and infrastructure.

The independent valuation of some of the existing assets currently owned by The Better Food Company has been conducted by an independent auctioneer and overseen by Luke Hasell. This shows that the value of the existing farm and equipment, delivery vans and wholesale facilities, computers and ordering management software, and the customer base comes to around £100,000 (see financial tables in section 8).

The process of negotiating a price that is fair to the staff and customers of The Better Food Company, and is fair to the new membership organisation, will be scrutinised through the use of independent accountants.

In addition, the Community Farm will need an estimated £30,000 further capital in the first two years of operation to purchase an additional tractor, polytunnel, irrigation infrastructure and sundry other items (see Tables 8.1& 8.2 Section 7) and £40,000 for buildings renovation and adaptation. In addition £50,000 is required for future growth plans.

4. Community Engagement

There are three main ways in which people can engage with The Community Farm: through becoming a member, by being a customer and by attending events at the farm.

4.1 Membership offers

Membership will be open to anyone who wants to support this project and its aims. Information about the benefits of membership and how to join will be publicised widely through existing mailing lists, local news media, relevant magazines, newsletters, blogs and Twitter. There will be different categories of membership and it is envisaged these may be expanded and refined over time as the project develops. Initially the categories that have been identified are shown in the following table.

The Community Farm Business Plan October 2010 9 Table 4.1 Membership Type of Investment required Benefits Detail membership Investment Investor Member Minimum o Free access to the Community o At the discretion of the Board, those investing £500 or investment of Farm Harvest Festival and more may be entitled to receive interest on their Community Open days and capital investment in the Community Farm £50 with a volunteer days o Members will have the discretion to waive this right maximum o Newsletters with seasonal so that sums are re-invested in the organisation’s investment of information social purposes £20,000 o One vote o Initial lock in period for investment of 3 years o Potential return on investment if o After 3 years investors may withdraw their investing over £500 investment although this right may be suspended o Confidence that your by the Board at its discretion if such suspension investment is supporting social is in the interest of the Community Farm & environmental benefits o 180 days notice will be required for withdrawal of investment o Investors will receive one years free membership for the first year of operation only from April 2011 to March 2012 entitling them to a discount on their vegetable box o To continue to benefit from this discount investors will have to pay the annual subscription from April 2012

Annual Membership Individual £30 a year, o 10% discount on box o Renewable annually. renewable each o £1 non-refundable share o On initial set up of membership (but not on renewing) entitling one vote, which shall household members shall be entitled to one share in

The Community Farm Business Plan October 2010 10 year apply only during the years the the Community Farm. annual membership is o If annual membership not renewed then voting right is maintained. On ceasing and withdrawn. then resuming membership the o £1 Share is non-refundable share and voting right will also resume, although no additional share will accrue. o Free access to the Community Farm Harvest Festival and Community Open days o Priority on specialist products – from the first fresh strawberries of the year to free range organic turkeys at Christmas o Priority booking for training events and cookery courses o Opportunities to take part in Community Farmer Days for free o Newsletters with seasonal information

Group Food Hub From £150 o As for Household membership This can be a workplace, community centre, village hall, o One share to be held by village or community shop, food co-op, group of nominee on behalf of the group households with just one drop-off point for a minimum of 6 boxes. o Renewable annually. o On initial set up of membership (but not on renewing) Group Food Hub members shall be entitled to one share in the Community Farm. o Cancellation of membership and renewal at a later date will not entitle Group Food hubs to a further

The Community Farm Business Plan October 2010 11 share. o If annual membership not renewed then voting right is withdrawn. o £1 Share is non-refundable Business £150 to £20,000 o Organic vegetables and fruit at This could be a restaurant, café, wholesaler who has a Membership wholesale prices commitment to the project and buys some produce from o Membership certificate to the Community Farm. promote your businesses o Renewable annually. environmental credentials o On initial set up of membership (but not on renewing) o One vote Business members shall be entitled to one share in o Newsletters to offer to your the Community Farm. customers o Cancellation of membership and renewal at a later o Association with a sustainable date will not entitle business members to a further local food and farming project share. o Links to the Soil Association’s o If annual membership not renewed then voting right is catering mark withdrawn. o £1 Share is non-refundable Further membership categories can be introduced in the future at the discretion of the Board and voting members.

The Community Farm Business Plan October 2010 12

In addition to these very tangible benefits we expect people and organisations to become interested in membership and supporting the Community Farm because it will offer an environment where people have the chance to work as a team, make new friends, gain skills and have a real sense of achievement. This will develop social capital and help create a system of local food production that is climate-friendly and leaves the land in good heart.

4.2 Organic vegetables

The Community Farm will produce the best seasonal, local, organic vegetables for the following customer groups:

• Home delivery vegetable box scheme customers. These will be delivered to individuals in the Bristol, Bath and Chew Valley areas, or collected from the Community Farm. • Vegetables sold to wholesale customers, including The Better Food Company, local schools, shops and restaurants etc. • A fortnightly (potentially weekly) market stall at the Whiteladies Road Farmers’ and Fair Trading Market, on the boundaries of Redland, Cotham and Clifton in Bristol, plus various pick up points to be identified around Bristol and the local area.

The Community Farm will initially offer the following boxes:

Size Member Non- Type of box 10% member discount The Family Provider Large £18 £20 Large approx 15 types of fruit and veg Small approx 12 types of fruit and veg Small £13.80 £15 Gert British Large £13.80 £15 Large approx 12 types of veg Small approx 6 types of veg Small £7.20 £8 Vegetable Variety Large £18 £20 Large approx 12 veg own grown and European Small approx 6 veg own grown and European Small £13.80 £15 Vegetables – no potatoes Large £13.80 £15 Large approx 12 types of veg Small approx 6 types of veg Small £7.20 £8 Mixed Fruit Box Large £13.80 £15 Large 7 types of fruit Small 5 types of fruit Small £7.20 £8 Farmers Choice £10.80 £12

These are based on the existing boxes provided by The Better Food Company. The discount shows the rate a member would pay for a box based on them having paid an annual subscription. The non-member rate will apply to The Better Food Company existing customers who may not want to become members. All new customers will be actively encouraged to become members and the benefits of doing so will be outlined to them. At some stage in the future consideration may be given to all new customers having to become members – this will be a decision made by the Board and share holders.

The Community Farm Business Plan October 2010 13 4.3 Farm Based Activities

A range of farm based activities will be available in the first year of the Community Farm, some of which will be free to members and some of which will be charged for. These will include: o An annual Harvest Festival o Regular volunteer days o Horticultural courses such as ‘Growing Your Own Vegetables’ o Cookery courses such as ‘Seasonal Cooking’ o Once the Community Farm is fully established then expansion of the range of farm-based activities will be considered, for example to include bee keeping, rural skill such as hedge laying, and small holding skills such as hen keeping and pig keeping. o Tailored team building days for organisations and companies.

5. MILESTONES

During the time period this business plan covers, the critical path and the associated milestones have been broken down into four key phases. It is important to point out that these have been drawn together by the Steering Group and may change, over time, particularly once the membership is established and they have a greater input into the running of the Community Farm.

5.1 PHASE ONE: July 2010 – March 2011 Before the Community Farm can be launched the following key milestones will need to be completed in Phase One:

Milestone Timetable Run a series of volunteer days at the farm. Ending Autumn 2010 Completion of the Farm Business Tenancy which will give the End of September Community Farm security of tenure for a minimum of five 2010 years. Agree a Memorandum of Understanding (MoU) between The End of July 2010 Better Food Company and the Community Farm Legally registering the Community Farm as Community Benefit Registration completed Society – the benefits of this are covered under Section 7, August 2010 Finances and capital requirements. Dissolving the Steering Group and electing the Board. Once registration complete, anticipated by Sept 2010 Administration, senior staffing plan, job descriptions. End of September 2010 Raising initial capital £20,000 to fund Pioneer Co-ordinator for Capital raised through 9 months (2 days a week) from June 2010 and other private donation. associated costs for launching share offer and marketing of the Pioneer Co-ordinator scheme. appointed June 2010

The Community Farm Business Plan October 2010 14 See budget at Appendix D. Produce offer document and launch offer, hold investor days at From mid- October the farm. 2010 to January 2011. Raising initial capital of £170,000 from community share offer By end of January to fund the transfer of all assets from The Better Food 2011. Company to The Community Farm, for capital requirements for the first two years of operation and for buildings renovation and adaptation.

Transferring the equipment, staff and customer base from The By end of March 2011. Better Food Company to the Community Farm subject to the funds being raised through the community share offer. Marketing and promoting the Community Farm – to raise Ongoing from July awareness, profile and build Community Farm membership to 2010. 300. Staffing structure in place to deliver Business Plan and launch April 2011 the Community Farm. Recruit members for the Community Farm From January 2011. Submit funding application to Green Capital Community End of January 2011 Challenge fund for chip-fat vehicle to transport volunteers from the city to the farm Submit planning applications for machinery shed and field By end of March 2011 kitchen

5.2 PHASE TWO: April 2011- March 2012 Following the launch, the Community Farm’s key milestones for Phase Two will be:

Milestone Timetable Increasing membership of the Community Farm from 300 to By end of March 2012 400 reflecting the cultural and socio/economic diversity of the local area

Establishing 10 pick up points and Group Food Hubs, in Bristol By end of March 2012 and the Chew Valley so that members can collect their own boxes from convenient locations Continue to fund raise towards phase 3 and 4 through further Ongoing throughout community share offers, grants, donations and other sources. year.

Take part in 3 local farmers markets. By end of March 2012

Hold 12 volunteer days for members over the year. By end of March 2012

Establish an education programme which will start with By end of March 2012 courses in horticulture and cookery.

Holding the Community Farm’s first Harvest Festival in By end of September September 2011. This will be an opportunity to: 2011 o Engage and thank existing members o Explain the plans for the coming year and listen to the views of members o Encourage new members to join o Celebrate the Community Farm’s achievements

The Community Farm Business Plan October 2010 15 Build machinery shed and field kitchen (subject to approval). By September 2011 Hold the Community Farm’s first AGM September 2011 to coincide with the Harvest Festival.

5.3 PHASE THREE: April 2012 – March 2013 In addition to all the activities outlined above, Phase Three of the Community Farm’s development will concentrate on:

Milestone Timetable Increasing membership of the Community Farm from 400 to End of March 2013 500

Establishing livestock enterprises - including pigs and laying End of March 2013 hens

Continue to fund raise towards phase 4 Ongoing throughout the year. Develop the education programme and farm based activities in Ongoing throughout consultation with the membership the year. Increase the growing area to 50 acres March 2013

5.4 PHASE FOUR: April 2013 – April 2015

By April 2015 it is envisaged the membership of 500 will be playing a very active role in the strategic direction of the Community Farm, so at this stage we can only speculate what the developmental activities will be.

However we would expect the membership to consider various options in keeping with the aims and objectives of the community farm.

During all phases the Business Plan will be reviewed and amended as necessary to ensure it is as up-to-date as possible and reflects the needs and views of members and investors.

The Community Farm Business Plan October 2010 16 6.0 Legal status, governance and the Steering Group

The Community Farm will be owned by its members and will have legal status as a Community Benefit Society, which will enable it to raise community finance in the form of shares, grants, legacies etc.

The Community Farm was registered as a Community Benefit Society in July 2010. It will launch its community share offer in October 2010.

This will initially be to raise the capital required to buy the growing, box scheme and wholesale businesses from the Better Food Company and to raise future capital investment for phase 1 and phase 2. In the initial share offer, we aim to raise in the region of £170,000 towards these objectives. Full details will be provided in the Offer Document about what the funding will be allocated to and arrangements should insufficient funds be raised. Appendix C shows a Memorandum of Understanding between the Better Food Company and the Community Farm which is relevant to this.

Should investment in excess of the required amount for the first phase be raised this will be used to fund developments in further phases.

As the Community Farm moves from phase two to phase three and expands from 22 to 50 acres a further capital injection will be required. This amount will be agreed by members but will largely be invested in farm machinery and equipment.

The development of the Community Farm and this Business Plan has been overseen and governed by a Steering Group. All the members have joined on a voluntary basis with the aim of seeing the project through phase one to launch. With the registration of the Community Benefit Society (“CBS”), the Steering Group has become the Board of the CBS. A special general meeting shall be held within six months of the formation of the CBS at which the Board shall resign and those who wish to stand for re-election, together with any other individuals who have been nominated to stand, will be considered by the members for election to the Board.

Please see Appendix E for biographies for each board member.

The management, governance and staffing structure of the Community Farm is outlined below.

The Community Farm Business Plan October 2010 17 Board Board – elected in accordance to Community Benefit Society rules

Operations Volunteer Strategic & New Part-time Director Coordinator Marketing t Director

Wholesale & Further posts Grower Box Manager Administration In italics = transfer from Permanent Permanent & Marketing Better Food Company 32 hours per 40 hours per k week

2 x self employed 45 hours per week 3 x permanent 30 hours a week 1 x self employed 16 hours per week 1 x permanent 24 hours per week 1 x summer temporary 1 x permanent 18 hours a week 10-20 hours per week seasonal

6.1 Operations

The Community Farm’s office, pack-house and storage facilities will be based at Woodbarn Farm, next-door to the growing land. This site is a mile from Chew Magna and 8 miles from Bristol. The registered address is:

The Community Farm Herons Green Farm Compton Martin Bristol BS40 6NL

The following web site has been developed and continues to be updated and improved. A complete online ordering system is now through linked from The Better Food Company to The Community Farm website http://www.thecommunityfarm.co.uk

The Community Farm has the benefit of taking on existing employees that have helped create The Better Food Company’s success in growing operations and distribution of vegetables boxes. Staffing details are shown in Appendix F.

The Community Farm Business Plan October 2010 18 7.0 Marketing and sales strategy

7.1 Overview of the organic market and horticultural trends

The organic market had grown significantly during the last decade from a few million pounds of retail sales, to a market that was worth £2.1 billion in 2008. However, The Soil Association's Organic Market Report 2010 published in April 2010 showed that sales in the UK dropped from £2.1billion in 2008 to £1.84 billion last year.

Although the recent recession has had an impact (as it has on all markets) the organic sector has proven to be and The Community Farm offers many more social and environmental benefits to encourage membership. In the medium term the prognoses for the organic sector is positive, for three key reasons:

• Consumers are increasingly demanding food they can trust that has real provenance and has not been produced with the use of artificial pesticides, weed killers or sprays. • The policy environment is broadly very supportive of organic production because of the proven benefits for the environment, the emerging evidence in terms of human health and, critically, the significant benefits in term of Climate Change and resource depletion. Soil Association research has show that on average organic farming has a carbon foot printing that is 30% lower than non organic food. • The organic sector still only makes up a very small proportion of total retail food sales, less than 3%, which means there is fantastic potential for growth.

Figure 7.1 - growth of the UK organic market during the last decade. Total retail sale of all certified organic products - Soil Association data, January 2010

Growth of the organic sector

2500

2000

1500

1000 £million

500

0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

-500 Year

National horticultural production trends National trends in horticultural production make sobering reading. The following chart shows that for almost all types of fruit and vegetables, production since 1997 has been declining steeply. The only sector bucking this trend is glasshouse fruit, which

The Community Farm Business Plan October 2010 19 unfortunately is also a major source of greenhouse gas emissions due to energy generation for heating and lighting, and the highly perishable nature of the produce that leads to wastage.

Table 7.2 Changes in UK planted area for fruit and vegetables, 1997/07

Type of production % change

Field vegetables -24%

Protected vegetables -52%

Total vegetables -24%

Orchard fruit -19%

Soft fruit -1%

Glasshouse fruit +224%

Total fruit -14%

Total fruit and vegetables -22%

Source: Defra Basic Horticultural Statistics 2008 / Barling et al 2008; 2007 figures provisional

The orchard heritage organisation Common Ground calculates that since 1950 nearly two thirds of England’s orchard area has been destroyed. In some counties, the tally is even more striking – Devon has lost 90% and Kent over 80% since the 1960’s. This is largely attributed to land development for other uses such as housing, the lack of legal protection for orchards, and commercial pressures on farmers to produce more profitable crops, alongside competition from cheap imports. Loss of smaller orchards has meant more intensive production in the orchards that remain, growing fewer varieties for processors and for the ever more concentrated retail market, with supermarkets increasingly demanding a year-round supply of cheap, cosmetically ‘perfect’ fruit in a narrow range of varieties. A shift towards such concentrated production, in turn, reduces the ability of orchards to support the diverse range of wildlife that in the past made orchards their home.5

The rise in the interest of growing your own, Community Supported Agriculture schemes, demands for allotments and other growing projects indicates that there has been a significant shift in emphasis and that people are more interested in how their food is produced and where it comes form.

To this end, the Community Farm is in an excellent position to respond to the demand for organic vegetables, help to redress some of the losses in horticulture and provide a sustainable farming system owned by the local community.

5 Summary taken from Sustain’s 2007 publication ‘Protecting our Orchard Heritage: A good practice guide for managing orchard projects. See: http://www.sustainweb.org/page.php?id=122

The Community Farm Business Plan October 2010 20 7.2 Background to the business opportunity for the Community Farm

Research has shown that when consumers first buy organic products these tend to be fresh fruit, vegetables and baby food6. This is because consumers’ initial motivation is concern for their own, or their family’s health. Over time these consumers typically become more committed to the philosophies and principals which underpin organic food and three things tend to happen:

I. People want to make a greater proportion of their diet organic. Evidence shows that this starts with fruit and vegetables, moves on through dairy and eggs and finally comes to meat and fish. II. As this change takes place, the consumer becomes more interested in the provenance of their food and how it was produced. III. Finally, as consumers become more and more concerned about sustainability and climate change they want to buy organic food that meets all of their ethical expectations and this means local organic food.

7.3 Competition and the strength of the Community Farm offer

Nationally the organic box scheme market is dominated by Riverford Farm, Abel & Cole and Flights Orchard whose combined home delivery schemes supply over 90,000 boxes a week. In addition there are a number of local, very small scale boxes schemes, serving one or two hundred customers that have a loyal and committed customer base in the Bristol and bath area. In addition to this there are smaller enterprises such as Leigh Court in Bristol and JP Organics in Bath. Whilst we do not know the number of customers these organisations serve, they are estimated to be between one and two hundred loyal customers. However, with an existing box scheme customer base and the added social and community benefits of being involved in the community farm there is enough difference between the schemes to ensure customers for the farm.

Community Enterprises There are a number of other CSA projects setting up that could also serve the local population of Bristol and the surrounding area. These include Sims Hill Shared Harvest7, Winterbourne CSA and Edcombe Farm Harvest Share in Rodney Stoke, Somerset. These are small scale start up enterprises in locations over 15 miles from the Community Farm and the impact on membership is likely to be small.

So what makes the Community Farm uniquely geared for success? The primary difference to other commercial operations is that the Community Farm will be run as a social enterprise involving local people in its development and will provide volunteering opportunities with both social, environmental and health benefits.

• The Community Farm can deliver against key consumer motivations to buy organic food outlined above – especially the desire for locally produced organic food. • Bristol and the surrounding area has a population with a national reputation for being engaged in “green” issues and therefore predisposed to buying organic and local produce.

6 Over 50% of baby food sold in the UK is now organic – with Organix and Hipp leading the field 7 http://simshillsharedharvest.wordpress.com/

The Community Farm Business Plan October 2010 21 • The award winning Better Food Company has a national and local reputation for excellence and innovation • The Community Farm is an already well established community operation. By becoming a social enterprise involving local people and volunteers it will add value to an already successful model • The Community Farm already has an established market from the outset when the transfer of The Better Food Company’s box scheme customers and wholesale business takes place. • Members can play an active part in the way their food is produced through their membership, visits to the farm and becoming involved in growing their own food. This will help ensure a far greater degree of loyalty and guarantee customers feel they are taking control of their own food security. • The Community Farm will be certified by the Soil Association to the highest organic standards and carry the Soil Association symbol. This will give customers the ultimate reassurance that this is food they can trust. • As the membership increases the Community Farm will be able to offer a wider range of organic products and meet customer’s demands. • We already know the food from the Community Farm tastes fantastic!

7.4 Specifics of the marketing and sales strategy

Marketing As outlined above the Community Farm has a huge head start because of the transfer of The Better Food Company box scheme customers and wholesale business. In addition, in order to grow sales and membership the Community Farm will:

• Generate free publicity through working with media contacts – both radio and TV at a local and national level. • Develop and promote the Community Farm’s website as a hub for information, recipes and inspiration http://www.thecommunityfarm.co.uk • Carry out leaflet drops in all the villages immediately surrounding the Community Farm. • Advertise the Community Farm and its products in local newspapers, magazines and via the Bristol Food Network. • Advertising the Community Farm in The Better Food Company monthly newsletter – which is circulated to over 2000 households. • Visit companies and organisations in the Bristol and surrounding area explaining the background to the project and offering to deliver boxes to the staff. For example, Target 80, Triodos Bank, Alistair Sawday Publishing, The Soil Association, Sustrans, Transition Bristol . • Establish Pick up Points. These are strategically well located sites where boxes can be left safely and then collected by customers at a time that is convenient for them. Two sites have already been planned – one at Target 80 in Chew Magana and one at Court Farm in Winford. • Hold an annual Harvest Festival open day. This will be an opportunity to engage with the local community, explain the background to the project and sign up new members. In addition in 2011 a launch event will take place to formally open the Community Farm. • Consider making acquisitions. A number of small scale, local, farmer owned box schemes have been established in recent years are keen to continue growing organic vegetables, but not running a retail operation. Under these circumstances the Community Farm will consider buying the customer list and taking on the business.

The Community Farm Business Plan October 2010 22 • Make links with the Bristol Food Strategy and other local food initiatives • Develop relationships with like minded projects, including Hugh Fearnley- Whittingstall’s Landshare and regional CSAs.

8.0 Finances and capital requirements

8.1 Overview of the Community Farm’s financial viability

The Steering Group is acutely aware that social enterprise ventures, irrespective of how well meaning, must also be financially viable. The Community Farm will be taking on an existing box scheme and wholesale business from an established company.

Financial modelling and business experience has shown emerging box schemes struggle to be profitable until they have at least 250 regular customers – the Community Farm will have 240 from the outset.

The regular income to the Community Farm will be through members’ subscriptions, sales of vegetables to box scheme and wholesale customers and fees for training and educational courses.

The key costs for the Community Farm on an ongoing basis will be staff wages, volunteer expenses, farm equipment and inputs (for example, seed), publicity and normal operating costs.

All profits generated by the Community Farm will be reinvested within the project.

To date very few expenses have been incurred during the phase one – in total only £3,000 has been spent by The Story and The Better Food Company. Both parties have agreed to carry this debt, without charging interest, until the new company has legal status and has raised the funds to pay this back.

How much investment does the Community Farm need?

Following an independent assessment of the business and the accounts being verified independently by Harwood Lane Accountants, the Community Farm requires initial investment of £170,000. The amounts required are detailed below. Whilst the table indicates a requirement of just over £200,000 the community farm will only implement the parts of the project it is able to subject to the amount of funding raised.

As identified in the offer document this is how the funding will be used:

£100,000 To buy the assets and goodwill of the Business from BFC. Values of individual elements of the Business have been independently assessed by relevant experts and accounts and forecasts relating to the Business have been reviewed by Harwood Lane Accountants. £30,000 For capital requirements in the first two years of operation. £40,000 For buildings renovation and adaptation to deliver future aims set out in the Business Plan.

The Community Farm Business Plan October 2010 23 o If more than £170,000 has been raised, the Farm shall complete the transfer of the Business from BFC, continue to run it as a going concern and look to apply any surpluses to accelerating appropriate elements of the Business Plan. o If less than £170,000 but more than £100,000 has been raised, the Farm shall complete the transfer of the Business from BFC and continue to run it as a going concern. The Farm shall seek to raise additional funds subsequently to enable it to deliver the aspirations contained in the Business Plan. o If less than £100,000 but more than £55,000 has been raised, the Farm shall purchase the growing operation, vegetable box scheme and wholesale business from BFC and loan the assets from them until it is able to purchase those assets from BFC. o If less than £55,000 is raised, the transfer of the Business will not proceed. All those who have invested will be reimbursed in entirety and the share offer shall be deemed to be unsuccessful.

The Community Farm Business Plan October 2010 24

8.2 Forecasts

The three year financial forecasts shown on the next few pages, along with the future transfer of assets from The Better Food Company to the Community farm and future capital requirements outline the Farm’s financial estimated financial status over the next few years.

The table below provides a summary of the investment required along with three years of trading profit and loss figures.

Community Farm Investment Requirements Purchase of box scheme, wholesale operations and software 40,000 Purchase of equipment to run box scheme 14,700 Purchase of equipment to run the farm 36,265 Capital essential to deliver forecasts for farm business 13,600 Capital important to assist in delivery of forecasts but not essential 16,000 Capital to assist in the continued development of The Community Farm 16,000 enterprises Cash reserves required to ensure business is solvent in event of low sales 16,000 Agricultural machinery barn 25,000 Building for volunteers and staff kitchen facilities 25,000 Total 202,565

Three years trading: profit and loss summary Forecasts for trading activity April 2011 to March 2012 Income from box scheme, wholesale and member activity 723,200 Expenditure on stocks to support sales 431,476 Staffing to run The Community Farm enterprise 178,340 Overheads 102,960 Net profit or loss 10,424

Forecasts for trading activity April 2012 to March 2013 Income from box scheme, wholesale and member activity 847,600 Expenditure on stocks to support sales 481,484 Staffing to run The Community Farm enterprise 211,810 Overheads 124,036 Net profit or loss 30,270

Forecasts for trading activity April 2013 to March 2014 Income from box scheme, wholesale and member activity 1,001,540 Expenditure on stocks to support sales 559,689 Staffing to run The Community Farm enterprise 237,191 Overheads 156,656 Net profit or loss 48,004

These forecasts have been scrutinised by Harwood Lane accountants. The Board understand there are a number of variables that may impact on the future performance of the business and that the forecasts assume considerable growth in membership and take up of the box scheme.

The Community Farm Business Plan October 2010 25 The Board believe that its commitment, that of the staff transferring to the Farm, and the enthusiasm of the new members will all contribute to the business meeting the challenges that will undoubtedly lie ahead. There is also the experience of BFC, which has been trading through difficult conditions for the best part of two decades, which shall still be available to the Farm to call upon.

The Community Farm Business Plan October 2010 26 The Community Farm forecasts April 2011-March 2012

INCOME April May June July Aug Sept Oct Nov Dec Jan Feb Mar Totals Box sales 14000 14000 16000 15000 14000 15000 15000 16000 15000 18000 19000 19000 190000 Wholesale sales 21500 21500 21500 20000 18000 22000 22000 22000 21500 21500 21500 21500 254500 Sales to BFC 2 shops 22500 22500 22500 21000 19000 21000 22500 22500 22500 22500 22500 22500 263500 Farm meat sales turkeys 8000 8000 Membership subs 1200 600 600 0 0 1200 600 600 1000 400 400 600 7200 TOTAL SALES 59200 58600 60600 56000 51000 59200 60100 61100 68000 62400 63400 63600 723200 Cost of box stock at 45% GP 7700 7700 8800 8250 7700 8250 8250 8800 8250 9900 10450 10450 104500 10% member discount 70% of box sales 824 824 941 882 824 882 882 941 882 1059 1118 1118 11176 Cost of WS stock at 28% GP 15480 15480 15480 14400 12960 15840 15840 15840 21240 15480 15480 15480 189000 Cost of BFC stock at 20% GP 18000 18000 18000 16800 15200 16800 18000 18000 18000 18000 18000 18000 210800 Minus stock from field -1000 -3000 -6500 -9500 -9500 -12000 -12000 -10000 -10000 -6000 -3000 -1500 -84000 Total costs on stock 41004 39004 36721 30832 27184 29772 30972 33581 38372 38439 42048 43548 431476 Gross profit 18196 19596 23879 25168 23816 29428 29128 27519 29628 23961 21352 20052 291724 Project senior management 5 days 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 2400 28800 Department management 3170 3170 3170 3170 3170 3170 3170 3170 3170 3170 3170 3170 38040 General staff farm & WS & box 7,000 9,000 9,000 9,000 9,000 9,000 8,000 8,000 9,000 7,000 7,000 8,500 99500 Volunteer worker and costs 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12000 seeds/plants/compost 1200 12001200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400 Contractor work 500 500 500 500 2000 Plant maintenance 350 350 350 350 350 350 350 350 350 350 350 350 4200 Electric 950 950950 950 950 950 950 950 950 950 950 950 11400 Transport 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000 Insurance 200 200200 200 200 200 200 200 200 200 200 200 2400 Rent field 21 acres @£200 350 350 350 350 350 350 350 350 350 350 350 350 4200 Rent barn 3600 sq ft @ £2.50 750 750 750 750 750 750 750 750 750 750 750 750 9000 Barn rent 130 130 130 130 130 130 130 130 130 130 130 130 1560 Soil association certification 1000 1000 Marketing/publicity 600 600600 600 600 600 600 600 600 600 600 600 7200 Professional fees 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000 Banking and card charges 800 800 800 800 800 800 800 800 800 800 800 800 9600 IT, tel, post 500 500 500 500 500 500 500 500 500 500 500 500 6000 TOTAL EXPENDITURE 22400 23900 23900 24400 23900 23900 23900 23400 23900 21900 21900 23900 281300 NET PROFIT/LOSS -4204 -4304 -21.18 768 -84 5528 5227.6 4118.8 5727.6 2061.2 -547.6 -3848 10424

Losses at start of year reflect all grower operations, little produce to sell until June/July. Lots of labour needed to get plants in etc Number of members including family and company membership = 240 Number of boxes per week = 350 average spend of £12 per box. Includes seasonal variation and non-member boxes.

The Community Farm Business Plan October 2010 27 The Community Farm Forecasts April 2012 to March 2013 INCOME April May June July Aug Sept Oct Nov Dec Jan Feb Mar Totals Box sales 20000 20000 22000 22000 20000 22000 23000 24000 24000 26000 26000 26000 275000 Wholesale sales 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 21500 258000 Sales to BFC 2 shops 22700 23700 24700 22700 20700 22700 24700 25700 26700 25700 26700 26700 293400 Farm meat sales turkeys 8000 8000 Membership subs 1100 1100 1100 900 700 1300 1200 1100 1200 1200 1150 1150 13200 TOTAL SALES 65300 66300 69300 67100 62900 67500 70400 72300 81400 74400 75350 75350 847600 Cost of box stock at 45% GP 11000 11000 12100 12100 11000 12100 12650 13200 13200 14300 14300 14300 151250 10% member discount 75% sales 1143 1143 1257 1257 1143 1257 1314 1371 1371 1486 1486 1486 15714.28571 Cost of WS stock at 28% GP 15480 15480 15480 15480 15480 15480 15480 15480 21240 15480 15480 15480 191520 Cost of BFC stock at 20% GP 18160 18960 19760 18160 16560 18160 19760 20560 21360 20560 21360 21360 234720 Minus stock from field -1330 -3990 -8645 -12635 -12635 -15960 -15960 -13300 -13300 -7980 -3990 -1995 -111720 Total costs on stock 44453 42593 39952 34362 31548 31037 33244 37311 43871 43846 48636 50631 481484.2857 Gross profit 20847 23707 29348 32738 31352 36463 37156 34989 37529 30554 26714 24719 366115.7143 Project senior management 6 days 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 35520 Department management 4070 4070 4070 4070 4070 4070 4070 4070 4070 4070 4070 4070 48840 General staff farm & WS & box 7,700 9,900 9,900 9,900 9,900 9,900 8,800 8,800 9,900 7,700 7,700 9,350 109450 Volunteer coordinator plus costs 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18000 Seeds/plants/compost 1440 14401440 1440 1440 1440 1440 14401440 1440 1440 1440 17280 Contractor work 800 800 800 800 3200 Plant maintenance 500 500 500 500 500 500 500 500 500 500 500 500 6000 Electric 1400 14001400 1400 1400 1400 1400 14001400 1400 1400 1400 16800 Transport 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000 Insurance 350 350350 350 350 350 350 350350 350 350 350 4200 Rent field 35acreas @£200 583 583 583 583 583 583 583 583 583 583 583 583 6996 Rent barn 3600 sq ft @ £2.50 750 750 750 750 750 750 750 750 750 750 750 750 9000 Barn rent 130 130 130 130 130 130 130 130 130 130 130 130 1560 Soil association certification 2000 2000 Marketing/publicity 600 600600 600 600 600 600 600600 600 600 600 7200 Professional fees 800 800 800 800 800 800 800 800 800 800 800 800 9600 Banking and card charges 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400 IT, tel, post 650 650 650 650 650 650 650 650 650 650 650 650 7800 TOTAL EXPENDITURE 26933 28333 28333 29133 28333 28333 29233 28033 28333 26133 26133 28583 335846 NET PROFIT/LOSS -6086 -4626 1015 3605 3019 8130 7923 6956 9196 4421 581.3 -3864 30270 Membership including family and company membership 440 Number of boxes per week Includes all non member boxes Av. £12 per box 500

The Community Farm Business Plan October 2010 28

Forecasts April 2013 to March 2014 INCOME April May June July Aug Sept Oct Nov Dec Jan Feb Mar Totals Box sales 26000 26000 28000 26000 24000 29000 29000 30000 28000 30000 30000 31200 337200 Wholesale sales 25800 25800 25800 25800 25800 25800 25800 25800 25800 25800 25800 25800 309600 Sales to BFC 2 shops 24970 26070 27170 24970 22770 24970 27170 28270 29370 28270 29370 29370 322740 Farm meat sales turkeys 11000 11000 Membership subs 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750 21000 TOTAL SALES 78520 79620 82720 78520 74320 81520 83720 85820 95920 85820 86920 88120 1001540 Cost of box stock at 45% GP 14300 14300 15400 14300 13200 15950 15950 16500 15400 16500 16500 17160 185460 10% member discount 75% sales 1485.71 1486 1600 1486 1371 1657 1657 1714 1600 1714 1714 1783 19268.57 Cost of WS stock at 28% GP 18576 18576 18576 18576 18576 18576 18576 18576 26496 18576 18576 18576 230832 Cost of BFC stock at 20% GP 19976 20856 21736 19976 18216 19976 21736 22616 23496 22616 23496 23496 258192 Minus stock from field -1596 -4788 -10374 -15162 -15162 -19152 -19152 -15960 -15960 -9576 -4788 -2394 -134064 Total costs on stock 52742 50430 46938 39176 36201 37007 38767 43446 51032 49830 55498 58621 559688.6 Gross profit 25778 29190 35782 39344 38119 44513 44953 42374 44888 35990 31422 29499 441851.4 Project senior management 7days 3256 3256 3256 3256 3256 3256 3256 3256 3256 3256 3256 3256 39072 Department management 4477 4477 4477 4477 4477 4477 4477 4477 4477 4477 4477 4477 53724 General staff farm & WS & box 8,470 10,890 10,890 10,890 10,890 10,890 9,680 9,680 10,890 8,470 8,470 10,285 120395 Volunteer coordinator and cost 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24000 seeds/plants/compost 1700 1700 1700 1700 1700 1700 1700 1700 1700 1700 1700 1700 20400 Contractor work 1000 1000 1000 1000 4000 Plant maintenance 700 700 700 700 700 700 700 700 700 700 700 700 8400 Electric 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000 Transport 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000 Insurance 350 350 350 350 350 350 350 350 350 350 350 350 4200 Rent field 50acres @£200 833 833 833 833 833 833 833 833 833 833 833 833 9996 Rent barn 3600 sq ft @ £3.00 900 900 900 900 900 900 900 900 900 900 900 900 10800 Barn rent 130 130 130 130 130 130 130 130 130 130 130 130 1560 Soil association certification 2500 2500 Marketing/publicity 750 750 750 750 750 750 750 750 750 750 750 750 9000 Professional fees 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000 Banking and card charges 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 16800 IT, tel, post 750 750 750 750 750 750 750 750 750 750 750 750 9000 TOTAL EXPENDITURE 31716 33136 33136 34136 33136 33136 34426 32926 33136 30716 30716 33531 393847 NET PROFIT/LOSS -5938 -3946 2646 5208 4983 11377 10527 9448 11752 5274 705.7 -4032 48004 Member numbers 600 at £35 a year Average of £12 box and 600 boxes

The Community Farm Business Plan October 2010 29

Table 8.1 Transfer Value from the Better Food Company to the Community Farm Box scheme and Customers Item Amount Notes Cold store 4,000 Second hand value including moving. £8500 new. It takes 4 people 4 days to dismantle and erect one of these. Quoted £2500 to move it. Pump trucks x3 300 1 less than 6 months old, 1 a year old. Cost £160 each plus transport Racking 5 units 200 Second hand cost Scales large and small + small 1,500 Big scales x 1, small scales x 5, packaging equipment warehouse items Van 1 Merc Vito 2001 1,900 Based on Ebay price research Van 2 1,000 Based on Ebay price research Van 3 Merc Sprinter with tail lift 5,000 Bought Feb 2010 Wholesale business. Over £280k 10,000 Accountant Not including certain new business by end of year turnover. Sales value. Customers and data base 20,000 400 regular customers @£50 each plus 2000 names On line order bespoke software 10,000 Independent IT Bespoke software developed over 3 years. assessment made Computers, telephone and broadband 800 2 desk tops only, 1 printer Farm set up and equipment Item Amount Auctioneer Notes estimate 1 tractor 3,500 3,500 Ford 486. 1 rotivator 1,250 1,250 2 years old at end of year Bed former 1,800 1,200 Cultivator heavy tine 300 Research from dealers like Brian Coleman enterprises Planter 3 row 2,000 1,500 Potato planter 1,000 700 Potato harvester 2,600 1,000 Ridger 400 400 Root lifter 1 bed 400 1,000 Trailer 3 ton 700 700 Wheel hoe x 3, 1 new model 1,100 New cost £450 each plus extra attachments Seed sower x 3 360 New cost £155 each plus extra attachments Sundry hand tools 150 Tractor hoes x2 300 100 Bed plastic layer 500 800 Shed 500 £200 labour £300 materials Poly tunnels x 1 big 2,650 Value £1,300, new cover £450, labour £800, new parts £200 Poly tunnels 1 small 500 Second hand value with new cover New polytunnel 1,820 £600 purchase, £100 transport, £600 erect and £420 cover Toilet shed and compost loo 250 New

The Community Farm Business Plan October 2010 30 1.2 metre power harrow 750 Bought June 2010 Very large cold store for farm winter 2,000 storage Not erected! Muck spreader old land driven type 300 Bought April 2010 for £250 plus transport Irrigation, pumps, pipes and hoses 3,200 New pipes and pump Crop covers 2,000 Second hand value Small and sundry items 5,935 Around 60 items including. Separate list available on request. Total transfer price 90,965

Vegetable stocks, produce in ground and packaging Item Amount Notes Veg stocks in storage as at Jan 2011 9000 maximum estimate includes12 ton potatoes, 5 ton squash and general stocks Veg stocks in ground at Jan 2011 6000 Roots, brassicas, winter salads, leeks Packaging and sundries 3000 Total estimated stocks etc 18000 Total to BFC as at Nov 2010 108,965

Table 8.2 Future capital requirements Item Amount Purchase date Priority and Critical to forecast plan or important but could work without Extra polytunnel 1,200 plus labour costs April 2011 Finger weeder 5,000 April 2011 Important Pack house veg grading equipment 5,000 April 2011 Important Tractor with front loader creep box 6,000 April 2011 Important Orchard trees and wind breaks 3,500 October Windrow for composting 2,000 October Large power harrow 2,500 part exchange after bed former Jan 2011 Priority and Critical sold Irrigation tanks and extra infrastructure 6,000 April 2011 Priority and Critical Site electric installation 2,000 April 2011 Priority and Critical Animal husbandry enterprises, sheep, 5,000 October pigs, Small planter and roller 800 April 2011 Compost loo facilities 600 April 2011 Priority and Critical Volunteer facilities - water, power 2,500 April 2011 Priority and Critical shelter changing and eating space Hard standing for vehicles 2,000 April 2011

The Community Farm Business Plan October 2010 31 Erect cold store and add new 2,000 April 2011 compressors Reserves to support business 16,000 Priority and Critical 62,100 Future building requirements Agricultural machinery shed 25,000 October 2011 Field Kitchen and training room 25,000 October 2011 Community Farm member centre To be costed TBA 221,065

The Community Farm Business Plan October 2010 32

The Community Farm is registered as a Community Benefit Society and will launch its community share offer in November 2010.

This will aim to raise the capital required to buy the business from The Better Food Company and future capital investment for phase 1 and phase 2. In the initial share offer, we aim to raise in the region of £170,000. Full details will be provided in the Offer Document on how the funding will be allocated and arrangements should insufficient funds be raised. Appendix C shows a Memorandum of Understanding between The Better Food Company and the Community Farm should this happen.

Should investment in excess of the required amount for the first phase be raised this will be used to fund developments in phases 1 and 2.

As the Community Farm moves from phase two to phase three and expands from 25 to 50 acres a further capital injection will be required. This will dependent on the agreement of the farm’s members but is likely to be invested in farm machinery, equipment and buildings.

The Community Farm Business Plan October 2010 33 9.0 Fundraising strategy

It is important to point out that the Steering Group believe very strongly that the Community Farm must be commercially viable and can not rely on fundraising to support core operations. Fundraising will therefore only take place to help cover initial start up costs and genuine development projects that can not be funded from core income.

There are three strands to the Community Farm’s fundraising strategy.

9.1 Community Farm Share Offer

As a Community Benefit Society the Community Farm will be able to raise capital through share options. Investors will be able to invest a minimum of £50 and a maximum of £20,000. They will receive a return on their investment at the Board’s discretion and will be required to invest for a minimum of 3 years. Details are set out in this Business plan in sections 3: Development & 4: Membership.

9.2 Membership The farm will generate revenue by charging an annual membership fee as detailed in section 3. Members will receive the benefits outlined in Table 4.1. The Farm aims to increase membership to 500 over 3 years and work will continue to enlist new members at all opportunities. At this stage, members will not be required to commit to buying a certain number of boxes a year but if annual membership and box sales fall then this may be considered in the future.

9.2 Grants

Grants will be considered as appropriate and for specific development opportunities or staffing for shorter term work. The farm does not want to become reliant on funding through this method although at accepts that at times this will be essential. In particular the Community Farm will investigate the potential for funding for community development work with the diverse range of communities in Bristol and also look to Bristol City Council’s Green Capitol funding stream. This may be appropriate to fund a vehicle to transport volunteers from central Bristol to the farm. This vehicle will run on environmentally friendly fuel i.e. used chip fat.

9.3 Legacies

The Community Farm plans to explore potential legacies as a revenue stream.

10. Monitoring and Evaluation

The scheme will be monitored and evaluated on a regular basis. This will be done through monitoring box sales, sales to wholesale customers, membership numbers, volunteer hours and input. Reports will be collated and presented to the Board.

The Board will evaluate these and assess where changes and improvements need to be made and what measures can be taken to improve the scheme, services and community involvement and benefit of the Farm.

Much of this will be dependent on developments over the next 12 months and a full monitoring and evaluation strategy will be developed and assessed against targets and objectives set out in this plan.

The Community Farm Business Plan October 2010 34

APPENDICES

The Community Farm Business Plan October 2010 35

APPENDIX A: Evidence of Need and Demand Record of Volunteer work days: reasons for being involved and suggestions for future development.

Growing o Potential growers who want to grow food, but can’t find land to do so o Lack of growing potential in cities. Allotment waiting lists are up to 10 years or sites are too far from home o Flats and shared houses have little outside access o A real sense of satisfaction in being part of the growing process and contributing to their own veg box.

Reconnecting with where food comes from o Wanting to connect with the land and farm in spare time. ‘Weekend’ farmers! o Access to the land and a share in the harvest seen as a way to link with farm and how our food is grown

Learning and Skill Sharing o A desire for learning opportunities, mixing work and learning more about growing o People want to learn and work with food. Idea of mentors suggested. o Local schools have indicated a desire to become members. Visits by Chew Valley Secondary School to learn more about growing. Primary School visits are planned. Poster competitions in schools

Recreation o The farm is such a lovely place to be

Volunteering o Provide volunteer opportunities and a way to track the learning and development of volunteers. Flag up jobs in advance so people can chose what they want to engage with. o Network of volunteer coordinators needed to link and coordinate volunteers

Being Part of Something o An environment where people feel safe o Time banking of work for food. Also trading potential of work for food for those with no income.

Promotion o Market the need for the farm and the benefits of it to potential members o Show some of the monthly or weekly tasks on the farm o Get the idea out there much more – social networking, blog, facebook, twitter. Allows people to watch progress and give instant feedback and allows access for people who maybe do not have time to get there frequently. o Need to look at membership and terms to encourage diversity o Stall at Organic Food Festival in September 2010

Ideas for the future o Picnic area so can visit anytime for recreational activities with friends and family o A land based diploma in growing food, course accreditation, possibility of different qualifications for work o Activities including rural craft training, animal husbandry, skill share opportunities

The Community Farm Business Plan October 2010 36 APPENDIX B: The Community Farm SWOT Analysis

Strengths Weaknesses o Grade 1 growing land owned by the Story Group o Financial commitment required at the start with staff transfers o Existing customer base of approx. 300 boxes from The Better o Wholesale business customers have less commitment to the Food Company project if not members o 10 existing wholesale business customers o Economic climate e.g. business closures o Grown locally, supplied locally o Some elements reliant on grant funding e.g. educational o Experience of people involved from The Better Food programme. Time needed to spend on these applications. Company, The Story Group and committed Steering Group o Lack of contacts in BME communities, deprived areas and members links between urban and rural populations to encourage a o Transfer of experienced staff to run the box and wholesale wide range of members schemes and growing o Irrigation infrastructure o Existing IT system to deal with ordering o Local community not fully engaged although awareness is o Potential to expand amount of land grown on to 50 acres developing o Existing volunteers o Access to the farm – transport, fuel required o Cold storage facilities o Volunteers mostly recruited from Bristol o Close to large urban populations of Bristol and Bath o Needs clearer vision of needs and wants of the two main o Keen interest in local food in the area stakeholders – how to share the risks of the businesses with o Collective decisions made by a people with a wide range of the community shareholders experience o Lack of volunteers in the Chew Valley area o Strength of continuing relationship with The Better Food o Turnover of volunteers Company through a Memorandum of Understanding o National and local reputation of The Better Food Company

The Community Farm Business Plan October 2010 37 Opportunities Threats o Develop more sustainable methods of farming on the site Large financial investment required from the start o Involving all sectors of the community o Not getting the membership offer right or enough members o Involving the local Chew valley communities o Could lose existing customers because of the change in o Reconnecting people with where their food comes from ownership of the box scheme o Educational visits and Open Days o Competition from other veg box schemes o Corporate membership and days at the farm o Not enough capital raised through Community Benefit Society o Work with other organic suppliers to ensure demand can be share offer to cover the buy out met o Potential investors not understanding what they are being o Chance to grow a wide range of vegetables, some specifically asked to invest in for BME populations o One element may be more successful than others e.g. o Chance to educate people about where their food comes wholesale business rather than growing o Expansion of growing land to 50 acres o The weather (growing) – what happens if the harvest is poor? o Farm volunteering opportunities o Investors might want their money back if recession continues o Linking with other CSA’s to bite o Becoming a landmark / beacon CSA and offer a "best o Not enough new customers to meet targets practice" example for other local growers and farmers o Funding not available through grant programmes for o Planting orchards – fruit, nut educational and other programmes o Chance to recruit more local volunteers o Being unable to obtain planning permission for small site o Offer apprenticeship / horticultural training improvements e.g. toilets, small office, storage shed o Opportunity to establish the high value to all of volunteering o Timescales can’t be met (everbody wins) locally and elsewhere o Too many opportunities – being unable to prioritise o Community engagement at all levels and for all groups of o Politics of collective decision making people (Wildlife groups, gardening clubs, Green Gym o Reliance on diesel, tractors etc opportunities, Family outings and "hands on Dig with Dad" o Timescale days etc). o Local concerns within farming community who may view the o Chance to engage with local farmers to demonstrate the value use of volunteers as a threat to their business of community involvement in growing o Lack of clarity of roles once the transfer made to the o Opportunity to link urban and rural communities community farm

The Community Farm Business Plan October 2010 38

Appendix C Memorandum of Understanding

Phil Haughton The Better Food Company Limited The Bristol Proving House Sevier Street St Werburghs Bristol BS2 9QS

8 November 2010

Dear Phil

Proposed purchase of the organic vegetable growing business, vegetable box scheme and wholesale operations of The Better Food Company Limited (the "Business")

Further to our recent discussions, this memorandum of understanding sets out the principal terms and conditions on, and subject to which, The Community Farm (the "Buyer") is willing to buy from The Better Food Company Limited (the "Seller"), certain assets, the goodwill and the Business as a going concern, subject to the agreement and signing by the parties of a detailed legally binding business transfer agreement (the "Transaction"). This memorandum of understanding is not exhaustive and is not intended to be legally binding except as specifically set out below.

1 Action Required by Parties

The following actions are required by the parties for the Transaction to proceed:

1.1 the Buyer will undertake a fundraising exercise;

1.2 the Seller will identify the assets that are to be transferred and confirm this to the Buyer;

1.3 the Buyer will carry out a due diligence exercise;

1.4 the Buyer and Seller will agree the terms of any land occupation and resolve any issues with regards to land;

1.5 the Buyer and the Seller will agree the terms of a business transfer agreement; and

1.6 the Buyer and the Seller will agree the terms of a supply agreement.

The Community Farm Business Plan October 2010 39 2 Due Diligence

The Seller will give the Buyer access to documents and information requested in relation to the sale. The due diligence exercise will cover, but is not limited to, the following areas:

2.1 financial records;

2.2 legal records;

2.3 business records;

2.4 property and equipment information; and

2.5 employee information.

3 Assets of the Business to be Purchased

3.1 The Buyer proposes to buy from the Seller all the assets used in the Business which are:

3.1.1 the Box Scheme Assets listed in Error! Reference source not found.; and

3.1.2 the Farm and Equipment Assets listed in Error! Reference source not found..

The Box Scheme Assets and the Farm and Equipment Assets together form the "Assets".

3.2 The Assets will be valued independently and this valuation will form the basis of the price to be paid for the Assets.

3.3 The Excluded Assets used in the Business, being those not listed in Error! Reference source not found., will not be bought by the Buyer.

3.4 The Business will be acquired as a going concern.

3.5 The Assets proposed to be purchased will be acquired free from all claims, liens, equities, charges, encumbrances and adverse rights of any description, including reservation of title.

4 Price

4.1 It is acknowledged that the Buyer is undertaking a fundraising exercise to raise the funds which will be used to pay the purchase price.

4.2 It is intended the Buyer's fundraising exercise will raise the purchase price for the Business (the "Price"). This is expected to be in the region of £90,000.

4.3 If on or prior to completion of the transaction ("Completion") the Buyer has:

The Community Farm Business Plan October 2010 40 4.3.1 raised funds greater than the Price, the Buyer will satisfy the Price in cash in full;

4.3.2 raised funds equal to the Price, the Buyer will satisfy the Price in cash in full. Alternately the Buyer may request that the Seller allows the Buyer to satisfy part of the Price and retain the remaining funds for working capital. The outstanding amount of the Price will be satisfied when the Buyer has the funds to proceed and until then certain assets (to be agreed between the parties) shall remain the property of the Seller, who shall loan the same to the Buyer for the sole purpose of conducting the Business;

4.3.3 raised funds that are less than the Price but equal to the valuation of the Box Scheme Assets, the Buyer will satisfy the Box Scheme Assets price in cash. The outstanding amount of the Price will be satisfied when the Buyer has the funds to proceed and until then certain assets (to be agreed between the parties) shall remain the property of the Seller, who shall loan the same to the Buyer for the sole purpose of conducting the Business; or

4.3.4 raised funds that are less than the Box Scheme Assets valuation. The Buyer and Seller are to agree whether to proceed on the basis of the funds raised, delay the transaction until further funds have been raised, or not proceed with the transaction. The outstanding amount of the Price will be satisfied when the Buyer has the funds to proceed and until then certain assets (to be agreed between the parties) shall remain the property of the Seller, who shall loan the same to the Buyer for the sole purpose of conducting the Business.

4.4 If the Seller and the Buyer proceed with the transaction there will be an ongoing relationship between them which will be governed by a Supply Agreement. This is detailed in paragraph 8 below.

5 Employees

5.1 The employees of the Business, as listed in Error! Reference source not found.3, will be transferred into the employment of the Buyer on their existing terms and conditions.

5.2 The Buyer will require Phil Haughton and Ben Raskin to enter into new service agreements with the Buyer on completion.

6 Buyer's Protection

6.1 The Seller is to give reasonable, limited warranties including, but not limited to the:

6.1.1 employees;

6.1.2 title and condition of property (both real and otherwise);

The Community Farm Business Plan October 2010 41 6.1.3 contracts (both customer and otherwise);

6.1.4 litigation claims (both potential and ongoing); and

6.1.5 permits held and required to be held.

6.2 The Seller shall indemnify the Buyer in respect of any tax liabilities relating to the Business prior to Completion.

7 Limitation of Liability

The Seller's liability under these warranties will be limited to a:

7.1 time period of three months after the end of one full audit period;

7.2 minimum claim value of £10,000; and

7.3 maximum aggregate claim value of the Total Price.

8 Ongoing Relationship

8.1 The ongoing relationship between the Buyer and the Seller will be governed by the terms of a Supply Agreement, pursuant to which, the Buyer will:

8.1.1 supply the Seller with fresh produce [to be confirmed what produce] at a competitive market value [to be confirmed what this means/how it will be measured] observing the quality of the produce and the service provided to the Seller's stores;

8.1.2 source the produce as it sees fit in accordance with the following order of priority where it is not possible to source the produce from The Community Farm:

(a) second source: produce from farms within 20 miles;

(b) third source: produce from national farms;

(d) fifth source: produce from worldwide farm.

The farms used to source the produce will be similar in nature to The Community Farm.

8.1.3 give reasonable notice as soon as possible where the Seller cannot provide the produce the Buyer has requested;

8.1.4 supply produce to customers of the Business that has been transferred to the Buyer from the Seller (the "Customer Contracts") on the same terms and conditions;

The Community Farm Business Plan October 2010 42 8.1.5 not change the terms and conditions of the Customer Contracts for two (2) years, without the consent of the Seller (not to be unreasonably withheld);

8.1.6 not set up a business which competes with the remaining business (after the sale of the Business) of the Seller; and

8.1.7 not poach existing customers of the Seller, which do not form part of the Customer Contracts for two (2) years, without the consent of the Seller.

8.2 The Seller will:

8.2.1 purchase 80% of its fresh produce from the Buyer for a minimum of three years, provided it is produced at a competitive market value [as above] and the Buyer observes the quality of the produce and the service provided to the Seller's stores;

8.2.2 give reasonable notice to the Buyer of its produce requirements;

8.2.3 allow the Buyer to procure the produce as the Buyer sees fit in the priority order set out above;

8.2.4 not set up a business which competes with the Business that the Buyer has purchased from the Seller; and

8.2.5 not poach customers who form part of the Customer Contracts for two (2) years, without the consent of the Buyer.

9 Time frame

At the end of the offer period the Buyer intends to proceed with the proposed purchase of the Business. This is only if the fundraising exercise has secured funds which amount, as a minimum, to the partial purchase of the Business. The Buyer and the Seller will negotiate in good faith with a view to completing the purchase of the Business during March 2011.

10 General

10.1 This paragraph 10 is legally binding.

10.2 All parties are responsible for their own costs in connection with the proposed purchase of the Business, whether or not it proceeds (including (without limitation) the preparation and negotiation of this memorandum of understanding, the Business Transfer Agreement and any documents contemplated by them) and any party may end negotiations in relation to the proposed purchase of the Business at any time without having to give any reasons for doing so or incurring any liability to any other party.

10.3 This memorandum of understanding is confidential to the parties and their advisers.

The Community Farm Business Plan October 2010 43

Yours faithfully

...... David Hunter duly authorised for and on behalf of The Community Farm

I confirm our agreement to the above memorandum of understanding.

Date:......

...... Director, duly authorised for and on behalf of The Better Food Company Limited

SCHEDULE 1 - BOX SCHEME ASSETS

Cold store Pump trucks x 2, Racking Scales + small warehouse items Van 1 Transit High Top Van 2 Volkswagen LT35 2000 Van 3 Merc Sprinter with tail lift Wholesale business. Over £280k pa turnover. Box customer data base

On line order bespoke software Computers and tel and broad band Plus sundry items and packaging materials

SCHEDULE 2 - FARM AND EQUIPMENT ASSETS

1 tractor 1 rotovator Bed former Cultivator heavy tine Planter 3 row Potato planter Potato harvester

The Community Farm Business Plan October 2010 44 Ridger Root lifter 1 bed Trailer 3 ton ( renovation on Nick trailer) Wheel hoe x 3, 1 new model Seed sower x 3 Sundry hand tools Tractor hoes x2 Bed plastic layer Shed Poly tunnels x1 biggest Poly tunnels 1 small New polytunnel Toilet shed and compost loo 1.2 metre power harrow Very large cold store for farm winter storage Muck spreader old land driven type Irrigation, pumps, pipes and hoses Crop covers, electric fencing feeders, pig ark, sundry items

SCHEDULE 3 - EMPLOYEES Wholesale / Box Scheme Name Number of Employment Hours per week status Laurence Guy 40 hours Permanent Sadie Leigh 34 hours Permanent Stevie Walker 30 hours Permanent Tomasz Magura 30 hours Permanent Dave Rogers 24 hours Permanent Alex Vann 16 hours Permanent Nicola Damery 11 hours

Growing Team Name Number of Employment Hours per week status Andrew Dibben 40 hours Permanent Atanas Sharkov 45 hours Self employed at present. 4 years with BFC. Ben Raskin 16 hours Self Employed Nicola Damery 11 hours Molly Brown 16 hours

The Community Farm Business Plan October 2010 45 Appendix D Budget for £20,000 private donation – allocated as shown Detail Pioneer Co-ordinator 2 days a week Valuation of business and accounts auditing Registration as Community Benefit Society Advertising for Pioneer Co-ordinator Post Website design - aligning businesses Stand at Organic Food Festival Design and print of offer document Volunteer Co-ordinator 5 hours a week Leaflet for Organic Food Festival Printing and binding business plan Volunteer days expenses Contingency

The Community Farm Business Plan October 2010 46 APPENDIX E Board Members

Luke Hasell Luke Hasell, BEng, Civil Engineer, an experienced project manager for Kier Group working extensively within the retail industry. In 2003 inherited a farming enterprise and now manages 500 acres and The Story Group Ltd which specialise in providing organic food direct to the public. Luke started the community farm concept in 2008 and remains dedicated to achieve the goals required. Luke is director of other businesses specialising in property development and event management.

Phil Haughton I first became a member of The Soil Association at 14 years old; this was the beginning of a life long involvement in organic food and farming. Experience has come from 5 years farming in Scotland, 5 years working on a city farm with education at its heart and 25 years retailing, wholesaling, growing and delivering organic food with a commitment to sustainability and community throughout. The award winning Better Food Company started life in 1992 and is a pioneering and successful organic food business with operations covering retail, a box scheme and wholesale. We grow vegetables and fruit on 22 acres at the site which will form the New Community Farm With thirty five years of working, living and breathing organic food, farming and community, and directing business operations I see The Community Farm as an opportunity to help build new models for food and farming with people at the centre.

Geraldine Hill-Male Geraldine is a teacher and a senior manager in a successful Bristol comprehensive school with responsibilities for staffing, management, fund raising, governance and policy development. She has extensive experience in project work in the arts and has set up, managed, monitored and evaluated a wide range of community arts initiatives. She has advised many arts organisations on their outreach and community work. She lives in the Chew Valley and has been actively involved with organic food and its principles for many years.

The Community Farm Business Plan October 2010 47 David Hunter David Hunter is a solicitor. He is a partner based in the Bristol office of national practice Bevan Brittan. He leads the firm's Corporate Social Responsibility programme and advises on social infrastructure projects. David is a trustee of Self Help Community Housing Association and of the Ethical Property Foundation

Angela Raffle Angela is a founder member of Sustainable Redland and a director of Transition Bristol. Sustainable Redland is a registered local community group, constituted since 2006, working to reduce carbon emissions and dependence on fossil fuels. Her interest, and that of the Redland members, is in helping to support local agriculture that enhances biodiversity, and produces climate- friendly food for local people. Angela has lived in Bristol since 1984, and works as a Public Health doctor in the National Health Service and the University of Bristol.

Ben Raskin Ben Raskin has 13 years of growing organic vegetables commercially. Previous positions include Organic Vegetable Manager at Daylesford Organic, and Commercial Manager at the Welsh College of Horticulture, as well as working for HDRA (now Garden Organic). He is currently Horticultural Advisor for the Soil Association where he is responsible for technical advice, support and representation for organic growers as well as running the Organic Apprenticeship Scheme.

Melanie Taylor I am the General Manager of The Better Food Company in Bristol, a large organic shop and café, wholesaler, grower and vegetable box delivery scheme business. It is an independent, local retailer which employs 47 people and has a turnover of £2.1m. I am responsible for the day to day running of the business. This involves direct management of four department managers, the finance team, the office team and a strategic management overview of the company as a whole. I have been in my current role for two years, having risen through the ranks of the

The Community Farm Business Plan October 2010 48 company. I have a 20 year career, working mainly in the food industry, as a chef, a catering manager and in food retail. I am, some would say, obsessed with all things foodie and particularly in promoting a local, sustainable food culture. I am involved in the community farm project not only because the company I work for is at the heart of it, but also because I think it is a fantastic project and a great opportunity for people to become more connected with their food and where it comes from.

Lesley Kinsley I have worked for the Soil Association for nearly 9 years, most recently as Strategic Development Manager. I specialise in securing government and lottery grants and led the development and submission process for the Soil Association's successful 'Food for life Partnership' bid to the Big Lottery Fund (£16.9 million over 5 years). My previous careers have been in secondary school teaching and FE College lecturing in Geography and Environmental Science. Through my FE work, I set up a LA 21 Youth Initiative in South Gloucestershire and secured EU and regional funding for and managed a region-wide initiative training small businesses in environmental management for four years. I have been a voluntary director for two Environmental Bodies and Horizon SW. I have recently started to mentor small charities in effective fundraising.

Involved in the development and adviser to the steering group

The Community Farm Business Plan October 2010 49 Jim Twine Jim has spent most of his life being involved in food and farming. He was born (after the vet came!) at Court Farm in Somerset. His parents bought the farm in 1969 and managed it organically from the outset. Jim spent his early years working at Court Farm, in pubs and then during the last recession ended up working in a windowless building for BT – which he vowed never to do again!

After returning to education and completing his degree, Jim returned to the South West and joined the Soil Association, where he now works as Trade Relations Director. He heads up a team that has a wide range of responsibilities from business development and working with retailers, to supply chain support and finding alternative routes to market for organic farmers and growers.

Jim took over his parent’s farm in 2004 and now share farms this with his lifelong friend Luke Hasell. In total they farm over 550 acres of organic land and sell their produce through a brand they have established called The Story – which encompasses a box scheme, home delivery service and will soon also have a farm shop in Wrington. Jim is a keen sportsman playing football, cricket and tennis and is very proud to have run the London Marathon in less than 3 hours - much faster than Luke!

Appendix F Staffing

Growers: Details of the growers can be found in the table below. They have a number of years experience, and Ben Raskin has 13 years experience of organic growing.

Farm staff: During the winter months we have 2 full time staff. In the summer we take on a further 3 to 4 staff and volunteers. Some are permanent and some are self- employed, details shown below.

Fresh produce manager: Laurence Guy manages all aspects of the wholesale and box scheme operations at The Better Food Company. He has recently developed a bag scheme called the Hub, delivering to business and organisations. His past experience involved working for Able and Cole a large London based box scheme.

The Community Farm Business Plan October 2010 50 Transfer of Staff from The Better Food Company

Wholesale / Box Scheme

Name Number of Employment Hours per week status Laurence Guy 40 hours Permanent Sadie Legh 30 hours Permanent Stevie Walker 30 hours Permanent Tomasz Magura 30 hours Permanent Dave Rogers 24 hours Permanent Alex Vann 18 hours Permanent

Growing Team Name Number of Employment Hours per week status Andrew Dibben 32 hours Permanent Charlie Haughton 32 hours Temporary - summer Tsvetan Koshlev 45 hours Self employed summer only Atanas Sharkov 45 hours Self employed at present. 4 years with BFC. Ben Raskin 16 hours Self Employed

Administration. The Better Food Company is available to continue to carry out all aspects of administration and financial control including, online ordering data base, customer care, banking, bookkeeping and marketing until the Community Farm is in a position to be able to take on staff to perform this role.

Logistics. All transport and delivery of vegetables is currently carried out by the BFC team. This will transfer to the Community Farm subject to the funds being raised through the share offer.

APPENDIX G Value of a box scheme/box scheme customer

Dear all

Following the away day one of my actions was to provide a valuation of a box scheme business/customer base in the open market.

On a confidential basis I have spoken with the key market leading box scheme companies and asked them for their valuation of business of BFC’s size. I have not mentioned the BFC in any of my conversations.

The response from all the contacts I spoke with was very consistent. Essentially none of them would pay more than £50 for an ‘active customer’8 and they all felt this was

8 This is defined as someone ordering a box at least once in the two months running up to the sale.

The Community Farm Business Plan October 2010 51 the only asset they would normally consider buying. This is primarily because they would add the new customers to their existing customer base and then take advantage of the economies of scale this leads to.

The rational for what I think is a relatively low price, especially when you think about all the work that goes into getting customers, is as follows:

• Boxes schemes of all scales rely most heavily on word of mouth to acquire new customers – which is clearly very cheap and can therefore makes £50 seem costly in comparison. • There is no guarantee customers will stay with the new box scheme provider – there is no contract between the BFC and their customers. In addition, customer retention for box schemes is relatively low. Typically 50% of customers are lost after 6 months – again impacting on the value of the customer base. • If you are a competing box it is much cheaper to take on a local box rather than buy up their customer base. For example, a box scheme business can simply offer to give free boxes to customers in a particular area. This is a much cheaper way of generating interest and potentially getting people to switch their custom.

So the bottom line is that on the open market, box schemes (unless they are huge i.e. Riverford, Abel and Cole with a very strong national identity) do not have a value over and above the customer list and the value of the assets (vans, cold stores etc).

For these reasons I believe the Community Farm should pay between £38 (the price Phil paid for each Wrington Greens customers) and £50 per customer. Given the existing number of BFC box scheme customers, the fact BFC has a strong local reputation and I suspect a loyal and committed customer base9 it would be hard to argue each customer is not worth the top end of this scale.

The assets (i.e. vans, IT etc) are worth the standard market rate.

Of course any business is ultimately worth what someone is prepared to pay for it and what the owner is willing to sell it for.

The Community Farm Business Plan October 2010 52