Good response to ADM joint venture with UOM
FARMERS have reacted positively to rapeseed crusher ADMs joint venture with United Oilseeds Marketing, which allows them to send rapeseed direct to the firms Erith plant, says the organisation.
Stuart Carpenter, who runs ADM Direct, set up last Christmas and owned jointly by ADM and UOM, says he has been in touch with 500 farmers and is hoping to buy 25% of the organisations 500,000t rapeseed requirement straight from the farm for this season.
Although he admits it will not always be possible to match merchants prices, he reckons in general the values offered will be competitive. He also claims selling direct will offer significant benefits to farmers, including access to the latest market information.
"ADM specialises in oilseeds and is the worlds biggest rapeseed crusher. Being a global player gives us more market information. We want to help farmers sell at the top of the market. It is not a big difference to ADM Erith if it buys at the top or the bottom of a market."
Buying from merchants will still remain part of ADMs strategy, says Mr Carpenter, but he concedes that not everybody in the trade is "overly happy" with the decision to bypass them.
When contacted, rapeseed traders were unwilling to comment publicly on the initiative as many supply ADM, but one said: "It would be wrong to say they (ADM) have a monopoly on market information. Merchants still have a lot to offer farmers." *