Another farmer co-op goes under

[Clive]

I suppose there is a potential of added value ie providing a boat of malting barley from one source may gain a £1 or two more per ton which should pay for the overheads?

does it ever actually happen though ? do central store users get more for their grain over an above the cost of the storage ?

its like these colour sorters - fixing a niche problem that didn't exist but a great thing to get a big grant for despite the economics of them simply not adding up as far as I can tell

 

[capfits]

Was a lucky escape for us! Father was sat round table at setting up of Angus cereals and asked what tonnage he'd commit.

Didn't do any.

It would be fair to say they went around the doors alot early on. Sums did not look particularly great for ourselves selling malting barley to maltsters,(who have storage).
Might have looked different as a wheat producer, but we ain't in a wheat driven area.
Also thought why base it in a non central position is half your field is the sea? We ain't exporting it as grain.

Sad for those that did invest, they had their reasons for sure.

 

[Farmer-George]

What is the average cost per tonne of building a shed these days? I’m sure over 10 years, the upfront cost plus the yearly charge would cover the cost of building a store you own?

We’re very fortunate that we could find an agreeable rental income from our less practical stores for industrial use, however our landlord won’t allow us to sublet.

 

[Jerry]

What happens to members grain in such a case?

Grain is stored on behalf of the farmer.

Store goes bust.

Can farmer get their grain back or is it all tied up until the resevers sort it out which could take months.

 

[Bossfarmer]

Be careful who you extend credit to ! I have a feeling there is a lot more like this to come unfortunately

whats causing it? and will the members at angus cereals still be allowed to store their harvest there this year?

 

[Iben]

Shouldn't be much grain in their stores at this time of year.

 

[limestone brash]

cant agree - the ROI of our stores when full of grain was excellent, one of the most profitable things we have ever done and far better than farming income

how anyone can lose money doing it is beyond me and that's paying to build it yourself (rather than get the customers to do so !) no grant money and charging annual commercial rates far lower than these co-ops often are


The members of this co-op will have paid to build it and then as usual they pay to rent its use - utter madness and yet another example of why right here in this thread

I feel very sorry for anyone who invested in storage with this co-op and no have nothing to show for it

Don’t you have a huge rates bill over and above the costs of on farm storage?

 

[Clive]

whats causing it? and will the members at angus cereals still be allowed to store their harvest there this year?

no idea, i have no connection to them

 

[Clive]

Don’t you have a huge rates bill over and above the costs of on farm storage?

not huge

I don't 3rd party store grain any longer however, it paid well but B1 use pays better around here now

 

[Grain Buyer]

what ever happened here? Did they find a buyer, what did the members do at harvest? Just to clarify....the store was built with members "buy in money" and government grants? The store was run by members paying to use their own store, plus paying for incurred drying and handling costs? Openfield traded the grain on behalf or the members?

when it went bust did the members lose their space? If someone has bought it, have the members got to buy back into it??

 

[Pieces_of_Eight]

what ever happened here? Did they find a buyer, what did the members do at harvest? Just to clarify....the store was built with members "buy in money" and government grants? The store was run by members paying to use their own store, plus paying for incurred drying and handling costs? Openfield traded the grain on behalf or the members?

when it went bust did the members lose their space? If someone has bought it, have the members got to buy back into it??

Complication arises because the members didn't own the site.

Angus Cereals were just a tenant, leasing the land from the port authority.

Not sure who now owns the plant/machinery on site.

Openfield was the sole marketing agent.

https://www.fginsight.com/news/news/update-buyers-sought-for-angus-cereals-7m-grain-facility-65485

 

[Grain Buyer]

Didn't own the site......that's a tricky one. so technically you are buying a load of on site, second hand plant?

with that in mind, the port authority wont stand them leaving a load of stuff on their site if rents and rates aren't being paid.

 

[Pieces_of_Eight]

Didn't own the site......that's a tricky one. so technically you are buying a load of on site, second hand plant?

Or you'd be buying into whatever lease you can negotiate for the equipped site, if the port authority bought all the plant & machinery for tuppence.

with that in mind, the port authority wont stand them leaving a load of stuff on their site if rents and rates aren't being paid.

Either way, a vacant site is costing the port authority money as an opportunity cost.

You'd think some merchant or maltster would want a port-side store that was brand new in 2011, if the price is right.

 

[d williams]

Complication arises because the members didn't own the site.

Angus Cereals were just a tenant, leasing the land from the port authority.

Not sure who now owns the plant/machinery on site.

Openfield was the sole marketing agent.

https://www.fginsight.com/news/news/update-buyers-sought-for-angus-cereals-7m-grain-facility-65485

Not the sharpest Co op to put a building up with grant and members money on someone else ground

 

[Pieces_of_Eight]

Not the sharpest Co op to put a building up with grant and members money on someone else ground

If the sums didn't add up long term, they would have struggled to get grant funding.

Not sure how they could do much bank borrowing though, without owning the site.

 

[d williams]

If the sums didn't add up long term, they would have struggled to get grant funding.

Not sure how they could do much bank borrowing though, without owning the site.

A good accountant will make things look good I can't understand why members money wasn't used to buy the land then the building wasn't built out of grant funding and fees over a set time at least they then may have a asset the could release if needed

 

[Pieces_of_Eight]

I can't understand why members money wasn't used to buy the land

I would assume the land was never for sale.

 

[d williams]

I would assume the land was never for sale.

Did it have to be built where it is for a reason?

 

[newjames]

Not the sharpest Co op to put a building up with grant and members money on someone else ground

No different to any tenant investing in bricks and mortar, whether thats farming or any other industry

 

[d williams]

No different to any tenant investing in bricks and mortar, whether thats farming or any other industry

Not something I would be that interested in building something on somebody else's land but that's up to the individual and yes it does happen but why anybody would is beyond me