TFF Group buys ?

[Farma Parma]

What do you mean by the EasyJet system?

You can empty your grain stores every year. Just sell physical grain and buy a futures position instead.

Local Grain Coop has no choice but too pretty much empty its store otherwise where is the next years harvest gonna go?
they allready send overage too outside stores as it is & thats no for nowt.
Pleased we dont buy into futures markets ie this year when the wheat plantings is poss half.

 

[Brisel]

Eh? You don't have to take futures contracts to delivery. Just sell/buy out the position when it suits or before expiry and delivery.

 

[Farma Parma]

Eh? You don't have to take futures contracts to delivery. Just sell/buy out the position when it suits or before expiry and delivery.

what if you only have 50% of the current 2020 harvest wheat in the ground tho instead of 90/100 as the norm thats what iam on about? or worse none in the ground
Heard a good one about the Biggest Farming outfit in the UK & if the pub crack is right there having to supply wheat next harvest from the open
market to fill contracts done before they like a lot of us realised there wernt gonna get it in the ground... oooppps expensive cock-up that if its right

 

[teslacoils]

I believe the volatility in our markets discourages investment, after all what we supply is their essential raw material.

Nothing discourages investment like uncertainty.

 

[homefarm]

What do you mean by the EasyJet system?

The airlines sell seats at low rates to cover costs and the price rises with every seat sold.
Like JD they do not try to sell every seat on every plane at a discount.

We could do something similar.
This year could we have said feed wheat is £150/tonne and then we all sell a max 50% of our
total. Then next 10% at £160 next 10%at £170 next 10% at £180 etc.

Perhaps we would only sell 50% but that is surly better than 100% at a loss. Build a new store or grow less. Manage supply and provide a service to our customers.

CF do it with fert, Lithan and Pulan just follow with a small discount on cf price.
I believe everyone would be happy with stable prices and supply.

 

[homefarm]

The airlines sell seats at low rates to cover costs and then the price rises with every seat sold.
Like JD they do not try to sell every seat on every plane at a discount.

We could do something similar.
This year could we have said feed wheat is £150/tonne and then we all sell a max 50% of our
total. Then next 10% at £160 next 10%at £170 next 10% at £180 etc.

Perhaps we would only sell 50% but that is surly better than 100% at a loss. Build a new store or grow less. Manage supply and provide a service to our customers.

CF do it with fert, Lithan and Pulan just follow with a small discount on cf price.
I believe everyone would be happy with stable prices and supply.

 

[Brisel]

what if you only have 50% of the current 2020 harvest wheat in the ground tho instead of 90/100 as the norm thats what iam on about? or worse none in the ground
Heard a good one about the Biggest Farming outfit in the UK & if the pub crack is right there having to supply wheat next harvest from the open
market to fill contracts done before they like a lot of us realised there wernt gonna get it in the ground... oooppps expensive cock-up that if its right

I see where you’re coming from. If you sold more Nov 20 wheat than you’d sown then you’d have to buy some back to avoid going to delivery or just close the position when you wanted to in order to keep it as a paper trade. That’s ok if the market went your way but not if it rose and you had to pay the difference. Nothing to stop you buying out of either paper or physical contracts now if you thought it would be cheaper to do so now rather than wait until the contracts near execution. Futures was designed as a tool for farmers to set some prices if they couldn’t do so with physical.

 

[deleted user 837354]

Just form a selling group.

 

[Rob Holmes]

The airlines sell seats at low rates to cover costs and then the price rises with every seat sold.
Like JD they do not try to sell every seat on every plane at a discount.

We could do something similar.
This year could we have said feed wheat is £150/tonne and then we all sell a max 50% of our
total. Then next 10% at £160 next 10%at £170 next 10% at £180 etc.

Perhaps we would only sell 50% but that is surly better than 100% at a loss. Build a new store or grow less. Manage supply and provide a service to our customers.

CF do it with fert, Lithan and Pulan just follow with a small discount on cf price.
I believe everyone would be happy with stable prices and supply.

That doesn’t work on a global market with a non perishable product

 

[homefarm]

As above many examples of how others manage a global market without discounting all their production.
Just about everything we buy is marketed and supply managed even with numerous producers in different countries.

I would agree farmers are so bad at the concept let alone the implementation that it unlikely to happen.

That is not to say it is impossible with the power of the internet and a lot of will and disiplin.

After all we would all winners.

 

[warksfarmer]

That's not an issue at all these days - stuff like that is bread and butter every day on FMP . It took us a while to learn the mechanics of all this but honestly stuff like thisn is no big deal now


The issue here is the good old chicken and egg scenario - to get the prices we need the volume and to get the volume you need the prices !

If enough went for it it could be game-changing but if not it will be no better than any existing buying group so really a bit pointless

transporting 29t of fertiliser to Devon and Scotland is very different sending a pallet of chemical via dhl in a van that can do multiple drops. The fert or is a single drop then your looking for a backload. I sent a tractor to the borders not long ago and after shopping around the cheapest price was £400. Add £400 to 29t of fert and that’s another £14/t.

 

[Cowcorn]

it was when FMP first stated but has not been for sometime - a lot of ag Chems particularly sold on there actually go to Ireland in fact

it’s changed a lot since day 1 and will change a lot again this winter

but this is not supposed to compete or replace - it’s a separate thing with the idea of using bulk buying commitment to get better prices

Thanks Clive that answers my Question with out me asking it .
Considering that agchens are one of my major costs i intend to give farm market place a go this coming spring.

 

[NLF]

I find it hard to believe distributors get 30% gross margins on ag chems. I've no idea who the "big 5" are (enlighten me) but a quick browse through companies house reveals:

Hutchinsons 12% gross margins, 4% operating margins
Frontier 6% GMs, 2% op margins
Fram Farmers 2% gross surplus, <1% op margin.

Are these companies really that inefficient or is it just a competitive business? I haven't a clue but it doesn't look like anyone is getting very rich at farmers expenses...

 

[Farma Parma]

is AGRii possibly the biggest? unsure?

 

[farenheit]

Have agchems even gone up with inflation?

Seems I'm paying less for most of them than I was last year.

 

[Farma Parma]

Have agchems even gone up with inflation?

Seems I'm paying less for most of them than I was last year.

twice as much across the board than they were in 2008 i know that.

 

[bobk]

I'm still in ,

 

[farenheit]

twice as much across the board than they were in 2008 i know that.

Anglia farmers agflation index says ago Chems are at 122 against 2006 index of 100. Far lower than any other farm input.

 

[Farma Parma]

Anglia farmers agflation index says ago Chems are at 122 against 2006 index of 100. Far lower than any other farm input.

Ive probs used 1/3 more in that period to make them more expensive also
But ive deffo ni on doubled my annual agchem bill since 11yrs ago & crop much the same area

 

[Gordy1]

Don’t giveup so easily ( it took James dyson years to get his vacume cleaner right and he is now one of the biggest farmers in the country)
I liked the idea of being owned by the members who used it ( many coops go wrong when they do non member business to justify the management cost )

And he still reckons he only breaks even & that’s with 4 million pounds in subsidies........still breaking even is better than a loss I suppose?