Blade SW

....adding value by integrating the supply chain

Blade SW is an example of supply chain collaboration in the beef sector. The collaboration currently produces over 10,000 finished cattle per year with finishers signing a fixed price sale contract when they buy the 100kg weanlings.

The chain includes Blade SW which is a wholly owned subsidiary of Romford Wholesale Meat, Dairy farmers who supply week old calves, rearers and beef finishers who are working together under contracts with Blade SW.

In addition to offering fixed price contracts to all parts of the chain Blade SW has developed an input purchasing ability which finishers can benefit from to reduce input costs for items such as feed and straw.

Key Learning Points

The Blade approach seeks to cut out all unnecessary transaction costs and provide a margin to all actors in the chain.

Rearers are paid a management fee with performance related bonuses which allows them to plan their businesses.

Finishers know their final price on the day they take delivery of the weanlings and can plan accordingly. In some instance they can use their contract with Blade in financial negotiations.

Specialisation of production roles - within Blade producers are encouraged to focus on one stage in the process and are supported in carrying out benchmarking.

All Blade producers adhere to production protocols which allow the end product to be sold as a premium product.