Survey highlights big differences in Buying Groups’ membership charges

A comparison of buying group membership charges conducted by AtlasFram Group, the UK’s leading farmer-owned inputs purchasing and crop marketing business, has highlighted dramatic differences in the cost of belonging to such an organisation.

“Farmers might assume that the cost of belonging to a buying group and the benefits of doing so are much the same, but our research shows that is not the case. In some cases the differences in charges is over 50 per cent, so farmers should look closely at what they are being asked to pay and question whether it represents value for money,” states Richard Anscombe, Chief Executive, (www.atlasfram.co.uk).

During a recent benchmarking exercise AtlasFram unearthed large variations between its own fixed-cost Membership charges and those of a similar-sized competitor funded by levies on individual product purchases. Whereas AtlasFram’s fixed-cost Membership Scheme, based on the productive area farmed, shields Members from input cost inflation and commodity price changes, thus preventing them from paying too much, a levy system results in the largest, most committed members paying the most.

The survey, which encompassed AtlasFram Members’ businesses from different sectors, farming different areas of land in different regions of the country, applied the competitor group’s levy-based rates to actual individual product purchases and where appropriate factored in any differences in product pricing. The results showed that AtlasFram Members save up to £2/ha on the cost of membership compared with a levy-based organisation, amounting to £1159 for a 217ha dairy unit and £3049 for a 1647ha arable business.

“Whilst confident that AtlasFram would show best value we were surprised by the extent of our advantage,” says Richard Anscombe. “AtlasFram Members who purchase all their farm input requirements through the Group often have their annual fee covered by supplier rebates alone, whilst also benefiting substantially from impartial advice and very competitive pricing.

“Depending on the type of enterprise they operate, Members save £15 to £75/ha on crop inputs and up to £65/cow within a dairy unit. Typically, a 1650ha arable and sugar beet enterprise could save up to seven times the cost of Membership through savings on inputs and services, which represents exceptional value for money. A number of our Members across the country have intensive elements of cropping, for example, onions, potatoes, salad crops and livestock enterprises within arable rotations. With so much volatility within the input and output markets, the benefits of being able to fix their Membership cost is substantial.

“A key to AtlasFram being able to operate so cost-effectively is our highly-experienced, multi-skilled staff. For example, each Member of the Purchasing Team has their own area of specialism and can provide Members with completely impartial advice, but is fully utilised and aware of all the issues which are relevant to the entire Department. This makes it possible for them to assist colleagues in delivering an excellent, timely service. It also creates awareness of what Members may require and highlights trends across our Membership, which allows us to adjust rapidly to short-term requirements.

“In addition to input cost savings, Members place equal benefit on savings in administration time and the impartial advice they receive from AtlasFram’s purchasing professionals, who have extensive experience of every industry sector. In a recent survey, 92% of Members stated that they received excellent value.

“In an increasingly sophisticated and complex marketplace it can be very challenging to farm in isolation and being part of a strong cooperative is a smart business decision to make, but clearly it is essential for farmers to choose the one that best suits their individual needs. Farmers increasingly appreciate the benefits of belonging to a large, professional and efficiently-managed purchasing and marketing cooperative that works entirely on their behalf to minimise the cost of input purchases and maximise the value of combinable crop outputs.”

To discuss the benefits of joining AtlasFram Group, and obtain a personalized example contact Ashley Gilman, Group Business Manager on 01728 727700.

“Farmers might assume that the cost of belonging to a buying group and the benefits of doing so are much the same, but our research shows that is not the case,” states Richard Anscombe, Chief Executive of the AtlasFram Group.

Further press information is available from:

Julian Cooksley

Kendalls Communications

Tel: 01394 610022

Email: julian.cooksley@kendallscom.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 Kerry-Anne Rookyard at Kendalls Communications - Tel: 01394 610022 or email Kerry-Anne.Rookyard@kendallscom.co.uk

Tags: