Sales strategy wins trophy in year of positive margins
Sales strategy wins trophy in year of positive margins
By Andrew Swallow
LITTLINGTON Discussion Group landed the Lloyds TSB Farmer Group Challenge trophy in a year that saw all the teams margins back in the black.
"Everybodys margins are positive this year," says competition co-ordinator Glenn Wrigley of the RASE. "Things are looking slightly better. Last year the winning margin was only £6/t and a couple were negative." (Arable, Jan 5)
Yield, protein and above all marketing were the crucial components of Littlingtons success in producing the highest margin/t of wheat from three plots, representing a 15ha crop, grown on the Cereals 2001 site.
At £84/t, their 9.36t/ha Malacca made the highest price which, at just 0.2t/ha behind the top yield, put them on the podium.
"We won because we sold it at the right price," admits the teams Matthew Bates. "As soon as we had the results we were on the phone to sell it."
However, Littlingtons sample failed to make full milling specification as all teams struggled with specific weight on the medium loam over sand and chalk site. "If it had been full spec wed have made £92 or £93/t," he says.
Liquid urea applied to the ear on June 28 was crucial in boosting protein to 13.3%, as it was for runners-up Essex Young Farmers.
The other two teams growing Malacca – Clayland Farmers Club and Writtle College – left out the foliar feed and achieved only 12% protein, despite solid nitrogen applications in late May.
"Im not sure whether we pushed it hard enough with the nitrogen," says Claylands John Rule, reflecting on the two split 200kg/ha N approach.
That was echoed by a number of teams. but Bumsteads Bumpkins Charger received only 193kg/ha and topped the yield table at 9.55t/ha.
"I was a little surprised," says Steve Bumstead. The earwash – 0.4 litres/ha each of Folicur (tebuconazole) and Amistar (azoxystrobin) – was the most powerful used in the competition and could have played a part, he says.
However, sold late at only £76/t, it only made third place, behind Essex Young Farmers which was the only team to sell forward, landing £87/t based on a full milling spec for half their budgeted output in February.
Low specific weight dragged that down to £80/t and second place.
• Host farmers Robert and Russell Kitely broke the curse of the competition which usually sees the hosts with "nul point" by landing the closest to budget prize.
Savings on variable costs compensated for their Consort coming in at 9.4t/ha, 1.1t/ha below budget. "Our selling price let us down but at least we are still in business," says Russel reflecting on the margin/t. *
A comprehensive approach to agronomy and some sharp marketing saw Littlington Discussion Group win the Lloyds TSB Farmer Group Challenge trophy for 2001, being presented here by the banks regional agricultural manager David West to team members (from left) Roger Huffer, David Coslett, Matthew Bates and Graham Howes.
Margin results
Team Margin/t*
Littlington 26.21
Essex YFC 24.20
Bumsteads Bumpkins 24.11
Hosts 20.61
Clayland 20.57
Writtle College 18.36
*Includes £218/ha AAPS and £350/ha overheads. Operational costs charged per sprayer/spreader pass.