A. Background.

Cultivate is part of the Cwm Harry Collective. It is a Cooperative Social Enterprise which makes both purchases and sales for its micro enterprises:

· Local/Organic Food

· Edible & Wildlife-friendly Plant Nursery (including raised beds)

· Community-owned Market Garden.

Cultivate Objectives:

A. Play an active role in developing a vibrant and resilient local food economy, in response to global challenges of climate change, energy, poverty and biodiversity.

B. Have a positive impact on the local economy, by leading the development of micro businesses; helping to employ people.

C. Assist and empower others to establish fledgling enterprises of their own.

Cwm Harry Objective 1:

1. To promote sustainable development* for the benefit of the public by:

a. The preservation, conservation and the protection of the environment and the prudent use of resources such as (but not exclusively);

i. Physical resources e.g. materials, nutrients and energy;

ii. Natural resources e.g. biodiversity, natural habitats, and ecosystem services.

iii. Land use e.g. soils, swards and agricultural practices;

b. The improvement of the conditions of life in socially and economically disadvantaged communities.

* Sustainable development means “development which meets the needs of the present

without compromising the ability of future generations to meet their own needs.”

B. Purchasing Policy.

When making purchases, Cultivate will honour the above objectives, taking into account the positive and negative impacts its purchases may have on:

· Our local economy and employment

· Our environment; e.g. pollution, waste, habitat loss, availability of natural resources.

· Improvement of health and access to affordable, nutritious food.

· Cultivate’s financial stability. We have to achieve balance to ensure that our good work can continue to make a real difference.

· People’s awareness of these social and environmental issues, and how their decisions can change them.

C. Sourcing/Purchasing Hierarchy.

All distances are within straight lines (radii) of Cultivate, Newtown. Organic UK assumes ethical employment standards. Organic overseas only assumes this if also fair trade. For our definition of “Sustainably grown/produced, uncertified organic”, please see Appendix 2.

This hierarchy can be directly applied to our fresh produce (fruit, vegetables and herbs). If we cannot apply all of these levels to a product we sell (e.g. oranges, coffee) we will apply the first relevant level, so the hierarchy is still valid. In order of preference, level 1 being the most preferable, the hierarchy is:

1. Certified Organic, within a 10 mile radius

2. Sustainably grown/produced, uncertified organic, within a 10 mile radius

3. Certified Organic, within 30 miles

4. Sustainably grown/produced, uncertified organic, within 30 miles

5. Conventionally grown/produced, within a 10 mile radius

6. Conventionally grown/produced, within a 30 mile radius


7. Organic, rest of UK

8. Sustainably grown/produced, uncertified organic, rest of UK

9. Organic, overseas (shipped), fair trade

10. Organic, overseas (shipped), no fair trade certification

n.b. Products which mainly use ingredients grown overseas (e.g. tea, coffee and chocolate), to support local businesses, the local element applies to the processing of the product.

n.b. The hierarchy mainly applies to fresh produce, but where processed produce is purchased, the hierarchy applies to ingredients - so local/organic ingredients are prioritised over conventional.

C. Stock Policy.

The Cultivate Local Food Shop will provide good food grown locally. Therefore the aim is to stock the Shop with 50% fresh produce chosen using the purchasing hierarchy. The full range of stock aims to be as local as possible, and where no local option is available (within the purchasing hierarchy) we will look to source from level 7-10.

The remaining 50% of stock will be made up of:

· Alcohols and other drinks (prioritising level 1-6)

· Dried goods including herbs, staples (rice, pasta, grains) and pulses

· Canned goods including vegetables and pulses

· Bread (from level 1-6)

· Preserves (from level 1-6)

· Dairy – organic/Welsh & borders (prioritising level 1-6

· Cleaning products?

· Food-to-go – locally produced snacks e.g. made at Cultivate catering kitchen

· Other ranges, based on customer feedback

Cultivate Local Food Shop is providing the above stock in addition to fresh produce to offer both convenience and value for money for customers while also supporting Cultivate and Cwm Harry’s objectives to support the local food economy, provide sustainable development and improve social and environmental conditions.

Where produce does not fit within the first 6 levels of the purchasing hierarchy and is sourced elsewhere, Cultivate will hope to encourage producers within level 1-6 to start up production of certain goods (fulfilling Cultivate Objective B) by demonstrating local demand.

Cultivate will ensure quality and value by:

· Offering a high price to producers (72% of retail price), therefore taking less profit

· Offering premium products with higher mark-up to subsidise other ranges

· Reducing staff costs with volunteer labour

· Providing other opportunities to access good food grown locally, through growing skills and space.

Appendix 1:

Transactions between Cultivate and Growers/Suppliers. Terms and Conditions:

All Growers must:

· Provide delivery notes upon delivery; stating date, time, quantities, prices to us and space for us to note condition received in or ‘unchecked’.

· Provide produce that is fit and ready for immediate sale, as decided by Cultivate staff / volunteers.

· Tell Cultivate by 5pm two days before agreed delivery day what produce they can deliver and their wholesale prices .

· Deliver to Cultivate Market Shop (at Glanhafren Market Hall, Market Street, Newtown) on the days agreed by both parties.

· Enable Cultivate to collect from them if necessary (for which a small fee may have to be charged).

· Give Cultivate clear information on the sources of the produce being purchased (traceability).

· In some circumstances it may be necessary to work on a sale or return basis (especially when dealing with new products, gluts and quality issues).

· Invoice on monthly basis, providing details of delivery note number

Cultivate will:

· In general, charge a mark-up of 1.4 on items purchased. This means that growers will receive about 72% of Cultivate’s retail price. So produce bought for £1/kg will be sold for £1.40/kg. This may have to vary (either up or down) according to availability, demand and quality.

· Charge higher retail prices for certain produce (e.g. higher for level 2 than for level 4), therefore providing more profit for those producers.

· Offer suppliers Cultivate shares and membership.

· Give suppliers suitable notice when placing orders (so there is sufficient time to prepare/deliver them).

· Pay invoices within 30 days of receipt.