Three of the UK's largest farmer buying groups form new alliance

[Steevo]

Three of the UK's largest farmer buying groups form new alliance​

26 April 2023 | by FarmingUK Team | Farm Products, Finance, News
https://thefarmingforum.co.uk/javascript:void(0)

APA Directors (L-R): Andrew Knowles, David Sheppard, Heather Claridge, Iain Gardner, Stuart McKenzie (chair), David Fawkes, Andrew Price
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Three of the UK's largest farmer buying groups have formed a a new alliance to deliver better value to their 6,000 members.


Fram Farmers, Woldmarsh Producers and AF Group have announced a new collaborative procurement initiative - Agri Procurement Alliance (APA).


APA aims to secure better value to the farmer and landowner memberships of the three largest co-operative buying groups.


The three groups said this would be achieved by "leveraging the strength and influence" of their combined 6,000 members.


They said the new initiative would "improve margins for their members and build stronger relationships with the supply chain".


The three groups said the establishment of APA was not the beginning of them merging, nor would it dilute their individual independence, identity, or regional propositions.




Each of the groups, as shareholders, will hold an equal proportion of the equity of APA, with two directors representing each of the shareholders on the board of the new alliance.


Stuart McKenzie, APA chairman, said "profound changes" were taking place in the agricultural supply sector as the industry adjusted to a post-Brexit marketplace.


These changes brought "opportunities, challenges and new priorities for farm procurement," the former Woldmarsh Producers chief executive said.


“It has therefore never been more important for farmers to adapt to this disruption, and work together through their cooperative buying groups.



"APA is a response to these challenges and the continuing consolidation of the agri supply chain, including manufacture and distribution.”


The groups said APA would set strategy for the purchase of specific products, utilising the collective strength of the new alliance to build stronger relationships with the supply chain.


Initially, APA will be focused exclusively on the fertiliser market - negotiating procurement terms, collation of market intelligence and new product innovation, and sharing this with the three buying groups.




Mr McKenzie added that despite significant individual growth in membership numbers, cooperation between the groups provided an opportunity to make a step-change in size, bringing the total to over 6,000 members.


"We are confident this will elevate discussions with suppliers to another level, bringing benefits to both members and suppliers," he said.


“APA will be solely focused on working with suppliers, to optimise volumes and deliver more efficient forecasting, planning and enhanced procurement.


"There will be no change in how the individual buying groups support and serve their members, who will continue to receive distinctive value, service and advice.”

Three of the UK's largest farmer buying groups form new alliance

Three of the UK's largest farmer buying groups have formed an alliance to deliver better value to members.

www.farminguk.com

 

[teslacoils]

Its good news.

 

[Huno]

Three of the UK's largest farmer buying groups form new alliance​

26 April 2023 | by FarmingUK Team | Farm Products, Finance, News
https://thefarmingforum.co.uk/javascript:void(0)

APA Directors (L-R): Andrew Knowles, David Sheppard, Heather Claridge, Iain Gardner, Stuart McKenzie (chair), David Fawkes, Andrew Price
Sign in to add your own press release SIGN IN REGISTER

Three of the UK's largest farmer buying groups have formed a a new alliance to deliver better value to their 6,000 members.


Fram Farmers, Woldmarsh Producers and AF Group have announced a new collaborative procurement initiative - Agri Procurement Alliance (APA).


APA aims to secure better value to the farmer and landowner memberships of the three largest co-operative buying groups.


The three groups said this would be achieved by "leveraging the strength and influence" of their combined 6,000 members.


They said the new initiative would "improve margins for their members and build stronger relationships with the supply chain".


The three groups said the establishment of APA was not the beginning of them merging, nor would it dilute their individual independence, identity, or regional propositions.




Each of the groups, as shareholders, will hold an equal proportion of the equity of APA, with two directors representing each of the shareholders on the board of the new alliance.


Stuart McKenzie, APA chairman, said "profound changes" were taking place in the agricultural supply sector as the industry adjusted to a post-Brexit marketplace.


These changes brought "opportunities, challenges and new priorities for farm procurement," the former Woldmarsh Producers chief executive said.


“It has therefore never been more important for farmers to adapt to this disruption, and work together through their cooperative buying groups.



"APA is a response to these challenges and the continuing consolidation of the agri supply chain, including manufacture and distribution.”


The groups said APA would set strategy for the purchase of specific products, utilising the collective strength of the new alliance to build stronger relationships with the supply chain.


Initially, APA will be focused exclusively on the fertiliser market - negotiating procurement terms, collation of market intelligence and new product innovation, and sharing this with the three buying groups.




Mr McKenzie added that despite significant individual growth in membership numbers, cooperation between the groups provided an opportunity to make a step-change in size, bringing the total to over 6,000 members.


"We are confident this will elevate discussions with suppliers to another level, bringing benefits to both members and suppliers," he said.


“APA will be solely focused on working with suppliers, to optimise volumes and deliver more efficient forecasting, planning and enhanced procurement.


"There will be no change in how the individual buying groups support and serve their members, who will continue to receive distinctive value, service and advice.”

Three of the UK's largest farmer buying groups form new alliance

Three of the UK's largest farmer buying groups have formed an alliance to deliver better value to members.

www.farminguk.com

Thats NICE! a bit like Trinity Grain or Openfield or John Deere Dealerships? Bothered!!!

 

[Mark Hatton]

Will it mean better deals or more market manipulation……

 

[Huno]

Will it mean better deals or more market manipulation……

exactly.. and i think you know my answer!!

 

[Huno]

I do respect them all joining up for collective business survival but is that what we small farmers now have to do? Answer..Yes

 

[Barneydog]

Definitely good news. People spend a lot of time chuffing and complaining on here about how badly things need to change, when in reality there is little that can be done to bring back more power to farmers. One thing that can be done is to cooperate and use buying groups for sourcing inputs and selling groups for marketing our produce. The fact that the three largest buying groups have seen fit to join up only strengthens their position in being able to supply their members with the best deals.

 

[Bald Rick]

As a Fram member, I shall look forward to Uber deals on our inputs

We need to try and match the power of the suppliers

 

[Clive]

it’s a good move that should give them greeter clout with suppliers

however suppliers may push back and not supply, they like to be in control and this does happen !


biggest issue with the traditional buying groups is they are terribly inefficient / manual processes to run them creates big overhead that that has be recouped in memberships and transaction fees

www.farmdeals.ag. has no membership fees, the idea is to let technology do the work and deliver a really big national buying group

 

[Boysground]

Started buying electricity from Cambridge Farmers 30 years ago and have been through all the changes of name and business since, ending up as Fram. Will be very interesting to see how things change now.

Bg

 

[teslacoils]

I joined Woldmarsh maybe 10 years ago after having £250 spare from a contracting job. Initially huge suspicion, in the main created by the "big suppliers" who told me they would do as good deals etc. Turned out my original suppliers were talking complete tosh, and after just using Woldmarsh for fuel for a year or two, then did all my ag chem through them. Now I put *everything* through them, and get a bill every month. I mean *everything*. Chem, fert, seed, fuel, electric. I rang them and asked if they could get me a car and one turned up. Literally every input for my farm goes through them now.

No idea on the others, but I know Wold keep things really lean which is what I like. @Clive the fee is not at all large. There is a point where you do need that interaction with real people, and an associated cost.

 

[Steevo]

I joined Woldmarsh maybe 10 years ago after having £250 spare from a contracting job. Initially huge suspicion, in the main created by the "big suppliers" who told me they would do as good deals etc. Turned out my original suppliers were talking complete tosh, and after just using Woldmarsh for fuel for a year or two, then did all my ag chem through them. Now I put *everything* through them, and get a bill every month. I mean *everything*. Chem, fert, seed, fuel, electric. I rang them and asked if they could get me a car and one turned up. Literally every input for my farm goes through them now.

No idea on the others, but I know Wold keep things really lean which is what I like. @Clive the fee is not at all large. There is a point where you do need that interaction with real people, and an associated cost.

Impressive! Well done!

 

[teslacoils]

It's a trust thing. There's not much in the farming world it seems. But I'd happily trust woldmarsh with open fert orders; forward chem bookings; fuel volumes etc.

I ring them. It's a real person. They know what's what. Ring me back etc. Its been a top business move for me.

 

[Bald Rick]

I joined Woldmarsh maybe 10 years ago after having £250 spare from a contracting job. Initially huge suspicion, in the main created by the "big suppliers" who told me they would do as good deals etc. Turned out my original suppliers were talking complete tosh, and after just using Woldmarsh for fuel for a year or two, then did all my ag chem through them. Now I put *everything* through them, and get a bill every month. I mean *everything*. Chem, fert, seed, fuel, electric. I rang them and asked if they could get me a car and one turned up. Literally every input for my farm goes through them now.

No idea on the others, but I know Wold keep things really lean which is what I like. @Clive the fee is not at all large. There is a point where you do need that interaction with real people, and an associated cost.

Surely Woldmarsh charge a member sub based on farm size/production and then a levy on purchases?

Was one of the few business decisions we got right joining Fram

 

[Will Blackburn]

Surely Woldmarsh charge a member sub based on farm size/production and then a levy on purchases?

Was one of the few business decisions we got right joining Fram

Only a levy on feed/certain livestock gear at Fram.

 

[Sid]

www.farmdeals.ag. has no membership fees, the idea is to let technology do the work and deliver a really big national buying group

Would that be advertising

Farmers and collective power...in lots of buying groups,doesn't really work does it?

 

[Bald Rick]

Only a levy on feed/certain livestock gear at Fram.

Thought it was across all purchases? Pays for their staff.

Mind you, when you see the size of our monthly bill, a bit of levy gets lost in there

 

[David.]

Why do they need a levy on top of the monthly charge?
Our buying group doesn't.
Do sellers have a "group price", or are some buying groups more favoured than others?
It would be a sad day if our local group of maybe 350 members were consumed by this big conglomerate and we were all just a number on a spreadsheet.

 

[Bald Rick]

Why do they need a levy on top of the monthly charge?
Our buying group doesn't.
Do sellers have a "group price", or are some buying groups more favoured than others?
It would be a sad day if our local group of maybe 350 members were consumed by this big conglomerate and we were all just a number on a spreadsheet.

We don’t buy everything through Fram as they are not always the cheapest and time spent on the phone is the best use of management time. Far more productive than pulling tits

 

[Bald Rick]

Why do they need a levy on top of the monthly charge?
Our buying group doesn't.
Do sellers have a "group price", or are some buying groups more favoured than others?
It would be a sad day if our local group of maybe 350 members were consumed by this big conglomerate and we were all just a number on a spreadsheet.

No, we pay a membership fee and have shares in Fram
Then we are charged a percentage of quarterly purchases (0.5%?) as a levy

Still save a shedload of money and personally if you buy anything in bulk, a buying group has to be the way forward