- Supply Positioning
- Supplier Preferencing/Market Management Matrix
- Supply Chain Analysis
- Risk Analysis.
A good understanding of the food market in Wales is vital for effective food procurement.This means that competition between good sources of supply can be developed.
The Agri-Food sector in Wales produces £1.8 Billion of our GDP, and consists of 500 firms of which the vast majority are in the SME sector. The main primary production output from Wales is milk and red meat. A significant proportion of the processing sector in Wales is based on the processing of these key areas of primary produce.
There is, however, a significant presence of companies from other sectors, including ready meals producers. Food produced and processed in Wales is sold mainly through retail outlets in the UK and abroad, and increasingly in the growing food service sector.
There are a small number of tools which can be used to help the food buyer understand how food supply markets work. Use of these tools will help buyers understand the types of procurement strategies which are appropriate, the market risks and how to reduce them, the most appropriate suppliers to use and the types of relationship with them. These tools are shown below and will be examined further in this section:-
Developing local supply chains opens up opportunities for small Welsh producers.