AtlasFram fuel scheme saves harvest costs

Innovative fuel futures scheme allows farming co-operative’s

18th July 2011

An innovative forward-ordering scheme which enables its Members to fix the cost of fuel for delivery during the harvest period has been launched by AtlasFram Group, the UK’s leading inputs farm purchasing and crop marketing business.

“Following significant fluctuations in the price of fuel during the last two or three years many of our Members asked us if it was possible to purchase this key input in advance, at a known price, so that they could budget more accurately. Until now, however, it has generally been financially unattractive to purchase fuel in this way because the premium demanded by suppliers to quote forward prices has been excessive, at up to 6p per litre,” explains Graham Aldrich, Energy Purchasing Manager for the farmer-owned Group, whose 1050 Members operate more than 700,000 acres throughout the UK. He states:

“As a result of active negotiations with our suppliers AtlasFram Group has been able to develop an innovative contract with Watson Fuels which provides Members with a much more viable forward-pricing option by keeping the forward premium to a minimum. Watson Fuels is a very successful independently-owned company which has an excellent reputation for providing a high quality service. The company employs over 600 people, has more than 40 depots throughout England, a fleet of 280-plus tankers and an annual turnover which exceeds £600 million.

“This new contract represents an excellent example of how AtlasFram works closely with its suppliers for the benefit of Members. For a very small premium, they can now forward-order the fuel they need to see them through the harvest campaign and autumn workload. In the past we had been put off forward purchasing because the premium was too high, but we have been able to negotiate the premium down to a level which is only slightly above the spot market price prevailing at the time the order is placed. It therefore represents very low-cost insurance against potential fuel price rises during the contracted period.

“The other major benefit is that there is no minimum commitment in terms of the quantity which has to be ordered, although Members are obviously committed to take delivery of the contracted amount during July, August or September, at the price which was agreed at the time of placing the order. Although the decision rests with each Member, we would suggest that rather than using the scheme to cover all their fuel requirements during the period they use this scheme to fix the price on a percentage of their expected needs.”

This innovative contract is just one of a number of fuel purchasing options offered by AtlasFram Group, whose fuel specialists constantly monitor world oil prices and obtain daily quotes from a wide range of fuel suppliers throughout the UK to secure the best combination of delivery time and price. Because of the benefits they derive from dealing with AtlasFram, more than 90% of Members now purchase the fuel they need to operate their businesses through the Group. During last year’s wet harvest, when combines and grain dryers used far more fuel than normal to bring in and safely store high-moisture crops, AtlasFram Members collectively saved more than £155,000 on their fuel purchases alone.

Further information is available from Graham Aldrich, AtlasFram Group on 01728 727710 or email: graham.aldrich@atlasfram.co.uk

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Further press information is available from:

Julian Cooksley                                                or:        Graham Aldrich                        

Kendalls Communications                                          AtlasFram Group          

Tel: 01394 610022                                                      Tel: 01728 727710                                            

Email: julian.cooksley@kendallscom.co.uk        Email: graham.aldrich@atlasfram.co.uk

NOTES FOR EDITORS

1.

Further details about the AtlasFram Group are available at www.atlasfram.co.uk

2.

Digital images are available to illustrate this press release. Please contact Kendalls Communications

Tel: 01394 610022 or email: kerry-anne.rookyard@kendallscom.co.uk

“AtlasFram’s innovative fuel purchasing scheme could offer an attractive option for Members who want the security of locking into a guaranteed price,” says Graham Aldrich, Energy Purchasing Manager for AtlasFram Group.

Further press information is available from:

Julian Cooksley                                                                        

Kendalls Communications                                                                                 

Tel: 01394 610022                                                                                            

Email: julian.cooksley@kendallscom.co.uk

or:

Graham Aldrich

AtlasFram Group

Tel: 01728 727710

Email: graham.aldrich@atlasfram.co.uk

 Email: jon.fovargue@atlasfram.co.uk

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