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Livestock
Dairy Farming
Dairy cake rejection
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<blockquote data-quote="ollie989898" data-source="post: 7799471" data-attributes="member: 54866"><p>If they can't make the cake for the contracted price, that is their own problem though. You are undoubtedly a pretty big customer in terms of tonnes. The mills all have the same access to the same raw materials, prices and ports that I did. They aren't top secret. If you wanted to book your entire tonnage for next summer, the mills can find the price of the raw materials going forward between May and September next year, calculate the price and then just buy the required materials on contract. By way of explanation it never mattered to me if the price of say rapemeal was £180/t or £300/t- the margin remained the same on the finished product.</p><p></p><p>Force Majeure is a big hammer and should only really be used for genuine reasons- mill burned down, product totally unavailable due to natural disaster in the supply country etc. In that case, I would expect any company worth their salt who valued their relationship with you would have a grown up conversation and find some way that altered the formulation to suit the situation. I remember having this exact conversation with a customer because the supply of maize gluten had dried up so he wanted to switch to something else.</p></blockquote><p></p>
[QUOTE="ollie989898, post: 7799471, member: 54866"] If they can't make the cake for the contracted price, that is their own problem though. You are undoubtedly a pretty big customer in terms of tonnes. The mills all have the same access to the same raw materials, prices and ports that I did. They aren't top secret. If you wanted to book your entire tonnage for next summer, the mills can find the price of the raw materials going forward between May and September next year, calculate the price and then just buy the required materials on contract. By way of explanation it never mattered to me if the price of say rapemeal was £180/t or £300/t- the margin remained the same on the finished product. Force Majeure is a big hammer and should only really be used for genuine reasons- mill burned down, product totally unavailable due to natural disaster in the supply country etc. In that case, I would expect any company worth their salt who valued their relationship with you would have a grown up conversation and find some way that altered the formulation to suit the situation. I remember having this exact conversation with a customer because the supply of maize gluten had dried up so he wanted to switch to something else. [/QUOTE]
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Dairy cake rejection
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