Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
The members own Woldgrain.
In simple terms, this is no different to Glebe Farm, owned by B. Smith & Sons, which is itself owned by Dave & Mike Smith.
Another farmer co-op goes under
- Thread starter warksfarmer
- Start date
The members own Woldgrain.
In simple terms, this is no different to Glebe Farm, owned by B. Smith & Sons, which is itself owned by Dave & Mike Smith.
Correct. But to be clear a member can not “always sell space once it’s paid for”. There are situations where they could just loose that asset overnight as has happened to the unfortunate farmers that bought space in Angus
Thats the danger of passing responsibly to others who only loose their job when it goes tits up
New jobs are easy to get, lost capital is never seen again
Do Dave and Mike ask customers to provide the capital that makes their business possible ?
Did the shareholders in woolies get their money back or house of fraser?
Perhaps a spell in business school might help
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
With the store new in 2011, it is unlikely that the members of Angus Cereals were fully paid up and owed nothing to the cooperative.
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
They may well do, if they operate their business on a cooperative basis.
Sorry Rob but I would rather steer my own ship - if I ever loose capital I have invested it will be me to blame. I didn’t invest in Woolworths just like I wouldn’t “invest” in CS space - call me old fashioned but I tend to only invest in business that makes sense and has potential to make me more than I invest !
I’m amazed that on a thread about a bankcruot CS where many farmers will have lost a lot of money that anyone can defend them as a good idea. What more evidence is needed of the fragility of these ponzI schemes ?
I’m clearly missing a trick here - I think everyone who buys bread should be providing the capital for me to buy my next new combine
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
Then you wouldn't own your combine. It would be owned by your customers.
Great I dont care if they want to own it, saves me investing 400k of my own cash , they can even sell it at any time if they want to another owner who will let me charge them for using it to grow their bread (sound familiar ?)
...... unless of course I go bust while using their combine due to my poor management , in which case they will loose everything as it will all be out of my control
Chae1
Member
- Location
- Aberdeenshire
All i know is farmer i spoke to had lost 20k. Not a good situation to be in and he wouldn't have had huge tonnage.
Sounds like a big risk investing in a CS.
Sounds like a big risk investing in a CS.
And there is the reality. A few involved loose their job and move on to the next job or CS scheme etc but the farmer looses his capital for ever
This kind of thing can destroy a farm business
- Location
- Lincolnshire
So what is in the Woldgrain agreement if its wound up, would i own a bit of the land or a % of a silo, or would I have to buy space to see what it says?
Like any company that went bust that would be down to the receiver and what if anything was left after creditors had been paid imagine
That’s assuming the farmer owned space isn’t used as security against bank loans in which case the bank would have first charge and would take it - can a company use an asset that is owned by someone else as security though ? I would have assumed not ? Unless the agreement a farmer signs up to allows them to do so maybe ?
- Location
- Lincolnshire
Its also said the Store does not own the grain so is always safe, so why is the bit of silo treated differently, they both belong to the farmer and will be on his balance sheet.
Baling Hay
Member
Basically Co-Ops are a bag of sh!t, ask Dairy Farmers of Britain old members!
So let the multinational agribusinesses run UK Agriculture instead?
Bossfarmer
Member
- Location
- between Perth and Inverness
so without reading 14 pages whats the story with angus cereals? with the takeover thats happening do existing members get their shed storage space back that they origionally paid for?
read the last 3 pages ..........
or maybe just give them a co-op to run via an exclusive marketing agreement, or better still let them buy it for pence in the £ from a receiver !?
Our choice of customer is the same regardless of if grain goes via a CS or direct from a farm or merchant store, what exactly is the difference ?
as long as there is more than one big merchant in the UK I see no issue selling to them, either direct or via a CS store (at the same price !)