Dalmark gone?

crazy_bull

Member
Livestock Farmer
Location
Huntingdon
I believe they will carry on with seed and their other profitable businesses but decided to cease grain trading.

Not gone bust or anything sinister just had enough of skinny margins, not the first, won't be the last.

C B
 
It's a shame that an established family business has thrown in the towel. I can only imagine that being a regional player is difficult in a pond with the big merchants such as Gleadell, Cefetra, and Frontier.

A good business can identify its weaknesses and take action upon them. Their seed business would probably earn them more money with less risk.
 

Spashett

Member
Great blog from barley weasel on just this ... moan about Merchants... and then they are gone ... and all that's left are the big 3 who don't care a damn about us farmers, what price nor when we get paid!!
 

Marsh lad

Member
BASIS
Location
Lincolnshire
THE DALMARK GROUP TO WITHDRAW FROM GRAIN TRADING

The Dalmark Group shareholders have taken the decision that they no longer wish to be involved in grain trading.

The group’s grain function, Dalmark Grain Limited, a subsidiary of J.E & V.M Dalton Limited (t/a Dalton Seeds) was established in 1976 and has enjoyed many successful years serving local farmers. The shareholders have concluded, however, that the current structure of the UK grain industry no longer allows for a small, regional merchant to be profitable.

The shareholders have agreed in principle that Cefetra Limited will take on the stock and forward book – an agreement that is expected to be finalised and executed during February.

The business has no liquidity or solvency issues and is fully cross-guaranteed by J.E & V.M Dalton Limited, a business that has net assets in excess of £7 million.

All creditors will be paid on time and in full.

Dalton Seeds will continue to trade as normal.

Managing Director of J.E & V.M Dalton Limited, Peter Fox, commented:

“Given that our grain business has been in existence for over 40 years, naturally this is a sad day.

“We are fully committed to UK agriculture and have done everything we can to avoid this day, but given the structure of the market place, have had to finally accept that our involvement in grain is no longer realistic.

“I am pleased that we have come to this agreement with Cefetra over our contractual position, and particularly pleased that they have offered a job interview with each and every member of Dalmark Grain staff affected.”

Any party wishing to discuss the matter is encouraged to call 01733 222391 and speak to their regular business contact.


Dalmark Group | Dalmark House | Eye | Peterborough | PE6 7UD
Tel: 01733 222391 Fax: 01733 223246

Please note - All outgoing and incoming telephone calls to the Dalmark Group
are now recorded for contractual and training purposes.
 
Great blog from barley weasel on just this ... moan about Merchants... and then they are gone ... and all that's left are the big 3 who don't care a damn about us farmers, what price nor when we get paid!!
I'm not sure I'd say my current merchants don't care. I deal with one rep who is very conscientious and is a valued part of my business.

My family and I choose our marketing partners very carefully as we need financial security. But there will never be just the big 3, the smaller merchants will always be around in one capacity or another as not every marketeer wants to deal with a bigger corporate compamy

There are businesses out there that are finding things difficult, Openfield have reported a £3.3 million loss, Fengrain have posted a loss, no doubt others will too?

As @crazy_bull said skinny margins are the nature of the business and not everyone can support this.
 

capfits

Member
If you think we are awash with grain buyers, then you ain't seen anything when compared to livestock feed sales guys. We could lose half of them and there would still be way to many.
 

texas pete

Member
Location
East Mids
I'm not sure I'd say my current merchants don't care. I deal with one rep who is very conscientious and is a valued part of my business.

My family and I choose our marketing partners very carefully as we need financial security. But there will never be just the big 3, the smaller merchants will always be around in one capacity or another as not every marketeer wants to deal with a bigger corporate compamy

There are businesses out there that are finding things difficult, Openfield have reported a £3.3 million loss, Fengrain have posted a loss, no doubt others will too?

As @crazy_bull said skinny margins are the nature of the business and not everyone can support this.

I have no knowledge of running a grain merchants, but how on earth can a company (and in Openfield's case producer owned) lose £3.3 million, are they not just buying grain from farm and transferring it to an end user, less the cost of doing so?

In that model, apart from the risk of a customer going bust, where is the opportunity to make a loss?
 

crazy_bull

Member
Livestock Farmer
Location
Huntingdon
I have no knowledge of running a grain merchants, but how on earth can a company (and in Openfield's case producer owned) lose £3.3 million, are they not just buying grain from farm and transferring it to an end user, less the cost of doing so?

In that model, apart from the risk of a customer going bust, where is the opportunity to make a loss?
Forward selling malting barley cargos was a good way to loose money this year, some need to sell some boats to facilitate quick movement at harvest, then low and behold a poor harvest here and no good barley to fill the boats so have to buy out of the contracts.

Too many overheads for too small a margin is another common one.

C B
 
I have no knowledge of running a grain merchants, but how on earth can a company (and in Openfield's case producer owned) lose £3.3 million, are they not just buying grain from farm and transferring it to an end user, less the cost of doing so?

In that model, apart from the risk of a customer going bust, where is the opportunity to make a loss?
You would think so! If they are doing 3 million tonnes of grain surely they should be making money???? Accompanied with seed sales for the Warburtons contract, and other buyback contracts offered seed, haulage, storage and drying charges the money should be rolling in!
 

Condi

Member
I have no knowledge of running a grain merchants, but how on earth can a company (and in Openfield's case producer owned) lose £3.3 million, are they not just buying grain from farm and transferring it to an end user, less the cost of doing so?

In that model, apart from the risk of a customer going bust, where is the opportunity to make a loss?

Yup, so easy, you buy it, sell it, make your margin.

Oh wait, the farmer wants to sell today because the price is high, but the miller doesnt want to buy. sh!t. And then someone else is bidding £2/t more on farm, and so you try and match it because otherwise the farmer wont sell to you and will sell to your competitor. sh!t. So you buy it but now the price has gone down, the miller wants to buy and the farmer wont sell. sh!t. Then you go out on farm with a min £20 G1 contract, but come harvest and beyond, the premium is only £9 and because you've taken the risk, you're left with the bill or trying to trade round it. sh!t. When the market wont give you an upfront margin, you need to take a risk and run a position, but then currency turns round and the market moves away from you. sh!t.


Cargill, ADM, etc have all lost money over the last few years and have rushed to diversity into higher margin business to generate profit. Bunge, one of the big 4 international traders, is up for sale. Wellgrain went bust, Dalmark have pulled out. Invivo sacked 20 of their traders 18 months ago. Glencore UK have made 2 of theirs redundant recently.

Yup, oh so easy to make money.... bit like farming, it grows out the f**king ground.....
 

Johnnyboxer

Member
Location
Yorkshire
Yup, so easy, you buy it, sell it, make your margin.

Oh wait, the farmer wants to sell today because the price is high, but the miller doesnt want to buy. sh!t. And then someone else is bidding £2/t more on farm, and so you try and match it because otherwise the farmer wont sell to you and will sell to your competitor. sh!t. So you buy it but now the price has gone down, the miller wants to buy and the farmer wont sell. sh!t. Then you go out on farm with a min £20 G1 contract, but come harvest and beyond, the premium is only £9 and because you've taken the risk, you're left with the bill or trying to trade round it. sh!t. When the market wont give you an upfront margin, you need to take a risk and run a position, but then currency turns round and the market moves away from you. sh!t.


Cargill, ADM, etc have all lost money over the last few years and have rushed to diversity into higher margin business to generate profit. Bunge, one of the big 4 international traders, is up for sale. Wellgrain went bust, Dalmark have pulled out. Invivo sacked 20 of their traders 18 months ago. Glencore UK have made 2 of theirs redundant recently.

Yup, oh so easy to make money.... bit like farming, it grows out the fudgeing ground.....

That is very sobering
 

Fens

New Member
As stated some sobering thoughts. Dalmark aren't to far from me, I've not dealt with them, dad did years ago but some friends do bits with them still. Fair play to the family business for biting the bullet and at a stage where they won't leave farmers hanging. We've had a few businesses round here go to the wall last two years, owing some serious sums to farms and I'm thinking veg / spuds and grain.
 

Widgetone

Member
Trade
Location
Westish Suffolk
Condi post + mr barley weasel sum it up perfectly - the surprise is that people find it surprising after the consolidation in the grain merchanting industry.
Heard one trader say in conversation the other day ' the more you trade, the more you lose '.
 

willy

Member
Mixed Farmer
Location
Rutland
It's mainly down to the end user I,e the mills not paying what the market needs. So the traders should tell them it doesn't stack up.

This is the whole problem with industry every one wants something for the lowest price possible, heavens forbid any one wants to make a profit (dirty word)
 

crazy_bull

Member
Livestock Farmer
Location
Huntingdon
It's mainly down to the end user I,e the mills not paying what the market needs. So the traders should tell them it doesn't stack up.

This is the whole problem with industry every one wants something for the lowest price possible, heavens forbid any one wants to make a profit (dirty word)


surely its end users and producers, wanting to buy at the lowest and sell at the highest? which is absolutely fair enough.

If a trader tells the mill it doesn't stack up at a price, but another trader is prepared to sell at that price, what is the end user to do?


C B
 

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