Farmdeals - a new digital buying group - BETA testers required !

Clive

Staff Member
Arable Farmer
Location
Lichfield
Using red diesel as an example:
How concentrated is the UK market share ?
Is there any possibility that they will collaborate to make sure the cartel (assuming there is one) isn't broken ? ie they agree among themselves not to offer red below a price they currently offer to smaller, less-of-a-threat buying groups ?
(just thinking aloud here, think its a fab thing you are doing).

edit:
https://fueloilnews.co.uk/top-fuel-oil-distributors/

one reason we have chosen fuel to stsrt is there is a lot if healthy competition abd suppliers are aggressively chasing new business do we think the desks will be good

we know ag chems and fert maybe not so simple ! but have a few aces up our sleeve when the tine comes
 

Sid

Member
Livestock Farmer
Location
South Molton
Gosh, I mustn’t be in a traditional buying group, it’s only 60 years old?
Trouble is with buying groups is boom or bust.
Companies either get the volume business or not.

Then when you go back to last years supplier they may not be there as they over committed themselves to the group. Then you end up with even less competition.
 
Trouble is with buying groups is boom or bust.
Companies either get the volume business or not.

Then when you go back to last years supplier they may not be there as they over committed themselves to the group. Then you end up with even less competition.

Of course there are a growing number of businesses that just don't want to supply buying groups...
 

delilah

Member
one reason we have chosen fuel to stsrt is there is a lot if healthy competition abd suppliers are aggressively chasing new business do we think the desks will be good

Be honest. You were typing that when you were eating your Sunday tea weren't you :ROFLMAO: .
I hope you are right. That table I put up suggests that distribution at least is heavily concentrated. And as I may have said before, market share is the root of all evil.
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
one reason we have chosen fuel to stsrt is there is a lot if healthy competition abd suppliers are aggressively chasing new business do we think the desks will be good

we know ag chems and fert maybe not so simple ! but have a few aces up our sleeve when the tine comes

The caveat to that is delivery. Cheap may be fine but not if it doesn't come for days.
As an example, we tend to be a "just in time" sort of farm i.e. the "fill me" thingy is flashing when I pick up the phone but our current suppliers are here within 8 hours of the phone call or less which, seeing as we use well over 2000 litres a week, is sort of comforting. A hungry cow is an angry cow .....
 

BRB John

Member
BASIS
Location
Aberdeenshire
So how is it going to work? is it going to work on a local area bases? because how many fuel suppliers actually cover the entire country? I've always bought my fuel from a local company and I'd hate to see them go out of business because they can't compete on a country scale.
I will be interested to see how much cheaper you can get fuel though I never thought there was huge margins in it.
I really don't see something like this working not on a national scale anyway and even if it did it wouldn't be good for an open free competitive market economy as far as I can think.
 

BRB John

Member
BASIS
Location
Aberdeenshire
The caveat to that is delivery. Cheap may be fine but not if it doesn't come for days.
As an example, we tend to be a "just in time" sort of farm i.e. the "fill me" thingy is flashing when I pick up the phone but our current suppliers are here within 8 hours of the phone call or less which, seeing as we use well over 2000 litres a week, is sort of comforting. A hungry cow is an angry cow .....
Yeah which you kind of have to be you can't fill a full tank of fuel.... 2000 litres a week! how many cows do you have?!?!?!
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
I looked into joining the one beginning with f,the cost and fact they wanted to see farm accounts put me off

We are members of "F" ........ and save a lot of money. Having said that, we do also negotiate our own deals but we have little time to watch the straights markets hence why we rely on professionals to jump on deals & lock us in to 6 month or more contracts
Don't be put off by submitting accounts as it's all about trust.
 
Location
Cheshire
Trouble is with buying groups is boom or bust.
Companies either get the volume business or not.

Then when you go back to last years supplier they may not be there as they over committed themselves to the group. Then you end up with even less competition.
There is remarkably little supplier changing, my cubed feed supplies have always come from the same firm 10+ years. It’s the tonnage commitment, payment terms and supply only arrangements that add up to big savings for suppliers.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
So how is it going to work? is it going to work on a local area bases? because how many fuel suppliers actually cover the entire country? I've always bought my fuel from a local company and I'd hate to see them go out of business because they can't compete on a country scale.
I will be interested to see how much cheaper you can get fuel though I never thought there was huge margins in it.
I really don't see something like this working not on a national scale anyway and even if it did it wouldn't be good for an open free competitive market economy as far as I can think.

there are several national fuel suppliers, we also have a number of local suppliers on board, we are actively looking for more right now so point your suppliers our direction please

The buying group app will offer you deals available to your location (s) - it will work fine nationally or locally and thats another big difference between Farm Deals and a more traditional local buying group

can’t see how increased choice and openness of pricing can be anything but good for competition - It also helps the smaller suppliers access bigger markets so its not bad for them either

This is no different to any of the existing buying groups , just national, free and more transparent
 
Last edited:

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