Selling Direct to Mills

[DrWazzock]

I have sold the odd sweep up load direct to local feed mills.
It got me wondering how many farmers sell direct to the end customer and how many go through a merchant?
I’d imagine some of the big players in this county could easily buy a feed mill and takeover the chain. Wonder if this will happen?
Boats and exports are a bit different but again not beyond the capability of some of Lincolnshire’s biggest farmers. One actually bought an entire boat load of fertiliser so they might be able to do the same the other way. Balls of steel though.
I sometimes think that if we leave the marketing work to others, (and don’t get me wrong, I think merchants provide a valuable service), then maybe we are missing out on our share of the pie.
It was farmers that set up many of the big merchant concerns and banks years ago but somehow we seem to have lost confidence.

 

[Two Tone]

I deliver direct to ABN store at Enstone using my Fastrac. But it has to go through Frontier.

 

[DRC]

It’s quite easy if your buying animal feed back off them . We used to sell a lot directly to HST feeds at Crewe and have some cattle nuts back . I know of one dairy farm that grew wheat and insisted they had it if they wanted his feed order. It wasn’t assured and one feed rep told me it was tipped in an unclean cattle shed which meant some muck got in the load, but he had to take it .
Plenty of mills like Lloyds go past here regularly with lorries , but prefer to deal with merchants than lots of individual farmers, although sometimes it’s there lorry that turns up to collect it

 

[DrWazzock]

It’s quite easy if your buying animal feed back off them . We used to sell a lot directly to HST feeds at Crewe and have some cattle nuts back . I know of one dairy farm that grew wheat and insisted they had it if they wanted his feed order. It wasn’t assured and one feed rep told me it was tipped in an unclean cattle shed which meant some muck got in the load, but he had to take it .
Plenty of mills like Lloyds go past here regularly with lorries , but prefer to deal with merchants than lots of individual farmers, although sometimes it’s there lorry that turns up to collect it

Yes we tended to buy feed from the mill we sold to. Always sold to them when we were clearing out in May for the best price of the year. Made me wonder why we didn’t sell it all to them!

 

[Widgetone]

It depends on who you are and where you are. Stockless growers wouldn't get such good terms as those buying feed back from the mill. Like the potential angle for unassured though...
Quite a few mills wont accept farm vehicles?

 

[Hampton]

Have considered it in the past. Even rang Llay (2 Agriculture) to investigate but they told me payment terms were 60-90 days so I didn’t bother.
Have loaded a couple of Lloyds wagons today. Ruth is very good to deal with, but was done through a merchant.

 

[Bogweevil]

Those foreign euro-farmers co-operate, the mad fools, it won't work:

DANISH AGRO A.M.B.A.​

Danish Agro a.m.b.a. is a cooperative agribusiness company owned by 10,500 Danish farmers. Established in 1901, the company mainly operates within the sale of feedstuff mixes, ingredients and vitamin mixes, fertiliser, crop protection, seed and energy, plus the purchase of crops from farmers.

 

[Hedger]

I have sold the odd sweep up load direct to local feed mills.
It got me wondering how many farmers sell direct to the end customer and how many go through a merchant?
I’d imagine some of the big players in this county could easily buy a feed mill and takeover the chain. Wonder if this will happen?
Boats and exports are a bit different but again not beyond the capability of some of Lincolnshire’s biggest farmers. One actually bought an entire boat load of fertiliser so they might be able to do the same the other way. Balls of steel though.
I sometimes think that if we leave the marketing work to others, (and don’t get me wrong, I think merchants provide a valuable service), then maybe we are missing out on our share of the pie.
It was farmers that set up many of the big merchant concerns and banks years ago but somehow we seem to have lost confidence.

What margin do you think merchants make?

 

[neilo]

Back home, we used to have an artic load of dairy cake delivered each week. Plenty of times, the lorry would go back loaded with cereals.

Don’t most mills work like that?

 

[robs1]

I deliver direct to ABN store at Enstone using my Fastrac. But it has to go through Frontier.
View attachment 983491

I hope that shed is bird proof, wouldnt want birds sitting inside shitting on the trailers

 

[Flatlander]

I sell every ton to the feed mill direct and deliver at their need. I’m on a short call list so if on a Friday night they get short of wheat I will deliver to them. Not the best for planning a night out but fir 30$ a ton extra I’ll sweet talk the wife
got a msg one Friday with them wanting 100 tons to see them over a long weekend but we were off to Jamaica at 5 on the Saturday morning. Would have been ok but the last load I plugged the intake leg and took an hour to get going again. Was home by two,packed showered and calmed the I’m terrified of flying wife down before heading to the airport. The extra paid for a chunk of the holiday.

 

[teslacoils]

Tricky isn't it.

My brother buys goodness knows how much chicken food.

I sell most of my why into flixborough....that produces chicken food. I'm two miles from my brother. Flixborough just up the road.

What's the problem? Well, he wants it cheap as possible. I want to sell at too price. Work out that dilemma and we'll all be millionaires, Rodney.

 

[Feldspar]

I've sold some wheat this year direct to Heygates using Graindex.

 

[fieldfarmer]

I hope that shed is bird proof, wouldnt want birds sitting inside shitting on the trailers

Usually the trailers must be re sheeted after the moisture probe and empty down the intake pit through a grain sock, not much chance of damage from birds.

 

[MattR]

What margin do you think merchants make?

What margin do merchants make?

 

[Flat 10]

Usually the trailers must be re sheeted after the moisture probe and empty down the intake pit through a grain sock, not much chance of damage from birds.

That’s a relief
But it honestly beggars belief that when you have to go through all the RT BS that some mills think it’s ok to have a resident flock of pigeons living above the intake pit where the concrete is so dented, cracked and broken you could never even sweep it. Usual story, double standards and farmers shafted every time.

 

[carbonfibre farmer]

Yes we sell our feed wheat direct to local mill. Have done for years. Deliver direct with tractor/trailer. Since we are only very small players, think it helps them if they are short of small amounts.

@robbie goes in there too, but through a merchant IIRC?

I should imagine there are a few on TFF, in this area, who deliver to them.

 

[robs1]

Usually the trailers must be re sheeted after the moisture probe and empty down the intake pit through a grain sock, not much chance of damage from birds.

The birds can still live there and sh!t everywhere, unless of course they keep a hawk there, my comments are tongue in cheek really

 

[DrWazzock]

What margin do you think merchants make?

I’ve no idea but presumably they aren’t charities.
I’m just interested to know how markets work.
I was involved on the periphery of exports of machinery at one time. It also seemed a fascinating thing, marketing stuff abroad, relying on a network of agents and contacts. Our Iranian agent had a son who was a top heart surgeon here. That man sold millions of dollars worth of kit for us from a small office with a telephone in an ordinary house in an ordinary street. Same in Russia. It all kept working away quietly through the Cold War, Glastnost etc. Just half a dozen people with modest premises yet millions changed hands. Didn’t turn a spanner or hold a shovel.

 

[Humble Village Farmer]

Tricky isn't it.

My brother buys goodness knows how much chicken food.

I sell most of my why into flixborough....that produces chicken food. I'm two miles from my brother. Flixborough just up the road.

What's the problem? Well, he wants it cheap as possible. I want to sell at too price. Work out that dilemma and we'll all be millionaires, Rodney.

What about getting a nutritionalist to work out a ration of wheat and beans plus a bit of whatever?

The mobile mills charge about £20 a tonne including blowing into a bin.