text: A university that was charging companies just to tender for its printing contract has backed down following pressure from a printing federation.
  Small companies feared they would be squeezed out of the public-sector contract market after two universities began charging companies between £75 and £120 to release pre-qualification questionnaires for their contracts.
  But the University of Hertfordshire admitted it had made a mistake after the British Printing Industries Federation (BPIF) used the Freedom of Information Act to investigate why it was charging and what the sums were used for.
  A university spokesperson told SM that cheques would now be returned to companies. "Earlier this year, under advice, we introduced a charge to businesses wishing to tender for our printing contract," she said.
  "One of the main reasons behind this was to enable us to identify serious applications for the work from suitably qualified firms. It is not normal practice for us to charge for tenders. We now recognise that attempting to restrict demands for print tenders in this way was a mistake and all cheques are being returned."
  Kevin Burke, managing director of Oak Filing, a specialist folders company and BPIF member, said he had refused to pay the charge and consequently lost his chance to tender for the contract.
  He fears costs could stack up if more organisations start charging, especially as he responds to at least three public contract notices a week. Craftprint, another BPIF member, was asked to pay £118 by Salford University to receive a pre-qualification questionnaire for a recent contract notice.
  Salford described the charging practice as "normal" for many universities, consortia and local authorities. A spokesperson added it had just invested in an e-tendering system, which would now make tendering more efficient.
  "Once this is operational, it would be our intention to drop the policy of charging for EU tender documentation subject to future cost assessments," she said.
  The BPIF described the practice, as a "cumulative obstacle to trade" and urged federation members to alert it to notices requiring such payments.
  "If a company responds to three of these notices a week in their search for new business, that would mean £18,720 paid out with no guarantee of any business," Lizzy Hawkins, BPIF public affairs officer, said.
  "Clearly, payments are going to deter companies from expressing interest in contracts, to the disadvantage of the buyer."
  Contracting with black-owned and managed suppliers is important to winning new business in South Africa, according to research.
  The survey of more than 400 South African companies by accountancy firm Grant Thornton last month found 63 per cent used purchasing policies to encourage black economic empowerment (BEE) and boost sales figures. This was an increase of 4 per cent on 2008.
  All South African companies are given a BEE rating and are more likely to win business with a higher score, the study said.
  Procurement remains one of the main strategies used to improve BEE ratings, and 61 per cent of the respondents increased the number of black-owned and managed vendors in their supply chain last year.
  Firms in the construction sector were most engaged in the issue, with 71 per cent adopting BEE procurement policies. Tony Balshaw, managing partner of Grant Thornton Eastern Cape, said the public sector's failure to give black owned businesses preferential treatment in procurement procedures meant private companies were leading on the agenda.
  In March, mining firm Anglo American South Africa revealed it increased spending with black-owned and managed suppliers by 42 per cent last year (News, 5 March 2009).
  The profit margins of milk processors are being squeezed as retailers keep milk prices low and farmers simultaneously increase their selling prices.
  A report by the non-profit group DairyCo found the average ‘farm gate price’ reported by the UK government – calculated by surveying milk producer prices each month – rose by 11.6 per cent last year. Producers benefited from increased global demand for dairy, especially from Russia, India and China. And increased competition for raw milk supplies as investment increased processing capacity.
  Retailers reduced prices paid to a seven-year low of 55.5 pence per litre, using price promotions to encourage consumers into their stores. Processor selling prices are suffering as a result, as processors are unable to pass on the higher milk costs. Another factor was the re-tendering of supply contracts, which resulted in a competitive environment for liquid milk processors.
  The market for cheddar cheese fared better as retail prices matched wholesale price increases, allowing retailers to maintain gross margins at 47 per cent for mild cheddar and 49 per cent for mature cheddar. Processors saw margins fall in the cheddar market by 5 per cent for mild cheddar and 4 per cent for mature cheddar.
  The report concluded that processors will focus on cost control as retailers remain competitive due to the recession.