An independent review into the governance of Red Tractor has underlined the extent of divided opinion on the assurance scheme, but highlighted a path towards better relations.
The NFU commissioned consultants Campbell Tickell to review Red Tractor governance in the wake of criticism of the launch of the Greener Farms Commitment, which the union argued happened without sufficient input from farmers.
Campbell Tickell concluded that Red Tractor’s representative model is not fundamentally flawed, but has been unable to deliver consensus across all areas of food production and processing, and may not be capable of dealing effectively with the intense challenges it faces in its current form.
The review found widely contrasting perceptions of the behaviour and culture of Red Tractor. It noted that the scheme’s supporters see Red Tractor as an effective, forceful and well-run leader in the food and farming space, while its detractors – some of whom sit within the governance structure itself – see it as “closed, over-controlling, dominated by certain interests and secretive”.
It has also been accused of being “in the pockets of retailers” and being too English-centric.
Key recommendations
Campbell Tickell made six key recommendations for Red Tractor to implement. The consultants suggested bosses create and publish a Governance Handbook to address issues around lack of clarity about roles and responsibilities, and introduce a formal process of appraisal for board and committee members, to foster a culture of continuous improvement.
They advised the development and adoption of a Board Member Code of Conduct, and to ensure that aspects of the code have application to the wider governance community.
They also said stakeholder engagement and relations must be addressed as a priority, and finally, that the Red Tractor risk map be reviewed and revised so that it can be fit for purpose in the new environment.
The findings can be viewed in full here.
Red Tractor reacts
Reacting to the publication of the report, Red Tractor chair Christine Tacon said: “The review reports that ‘Red Tractor governance is sound’ and Campbell Tickell have found ‘no procedural breach’.
“It also flags that ‘Red Tractor is perhaps significantly more transparent than other assurance schemes’ and acknowledges that this, together with its representative structure, leads to governance complexity. Red Tractor needs to respond to this, particularly given the current pressure of a challenging operating environment.
“The review sends a clear message about the level of frustration farmers feel and we need to listen carefully to their views. We will also continue to increase our efforts and investment in communicating Red Tractor’s purpose and benefits to farmer members.
“We now have an essential opportunity to reflect and refresh the way Red Tractor delivers its role for all stakeholders across the entire food chain. Over the coming weeks, Red Tractor’s AFS Board will consider the review in full before agreeing next steps and how these will be implemented.”
Following publication of the review, Red Tractor released a lengthy statement highlighting where the report acknowledges its efforts in the face of challenging conditions.
Among those areas, regarding the Greener Farms Commitment Red Tractor pointed out that the review confirms that the proposals are correctly part of its remit: “Red Tractor’s standards are to cover food safety, animal welfare and the protection of the environment,” the review states. “Red Tractor’s activities, in producing its assurance standards, promoting the Red Tractor Brand and developing the environmental module, the Greener Farms Commitment, fall full-square within its corporate objects.”
It also notes the challenging circumstances surrounding the process. “Although throughout its 23-year existence Red Tractor has always needed to balance pressures and forces – the needs of consumers, retailers, processors, farmers, governments and others – that are often in direct conflict with one another, there has probably not been as difficult a set of operating circumstances as at present.”