Buying group trims 30% off costs
Buying group trims 30% off costs
FARMERS in Northants are saving themselves up to 30% on seed, spray and fertiliser costs thanks to a newly-formed buying group.
Organised by Samuel Rose farm management consultants of Brixworth, Northampton, the group already accounts for 20,000ha (50,000 acres) of cropping in the area. A recent mail-out looks set to attract a further 14,000ha (35,000 acres).
"Last Christmas we sat down to think how we could reduce input costs without reducing rates any further," says consultant David Meredith. "Since we were already buying some inputs informally for an agronomy group and some in-hand farms that seemed a logical way to go."
Forces were joined with an existing local agronomy/buying group run by two independent agronomists. Now over 60 farmers participate.
"Our buying power means members are getting 10-15% savings, even where they were shopping around previously. Some are saving 30% and that is after deducting the cost of service, which we can still offer through an independent agronomist if wanted," says Mr Meredith.
Members are not required to make all purchases through the group, so existing arrangements to be maintained where desired. Group orders can be made by phone, fax or e-mail, with spray delivery usually within 24 hours.
Most stock is bought from local distributor on preferential terms. Some comes from manufacturers direct.
"We consider variable costs to be the true fixed costs of arable farming, in that you have to use what the crop needs or compromise on the final margin," notes Samuel Rose consultant William Tongue. "More competitive purchasing is a useful way of reducing costs without compromising crop husbandry."