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Inputs Purchasing Critical To Dairy Farmers' Profitability

14 September 2009

UK - Purchasing inputs at the most opportune time holds the key to farming profitability in the current financial environment, according the AtlasFram Group.

"Extreme volatility in the commodity, raw materials and utility sectors over the last 18 months has made inputs purchasing critical to the success of any farming enterprise. Consequently, dairy herd owners and managers must adopt a new outlook in terms of how they view the market and time major input purchases," states Roland Wunderle, a dairying expert who manages the Dairy Group, reports FarmingUK.

Mr Wunderle adds: "The prices of all major farming inputs, from feed and fertilizers to fuel and electricity now change so significantly and on such a regular basis that deciding exactly when to buy them is increasingly difficult. Most individual dairy farmers lack the time, up-to-the-minute information and market knowledge, but all of these issues are addressed if they belong to an impartial, professionally-managed purchasing group."

With Members throughout the UK, the AtlasFram Dairy Group purchases everything that farmers require, in addition to feed, where long- term, strategic partnerships with the most appropriate suppliers in each key geographical area best meet Members’ requirements, the Group also offers a host of other products. Dairy chemicals, for example, can be delivered from the manufacturer or distributor direct to the farm.

The AtlasFram Group purchases more than £1.8 million worth of animal health products annually and believes that the potential is there to double that figure. With the average veterinary bill now £60 - £70 per cow, it claims to save Members approximately 10 per cent on their animal health costs, just as it has achieved through its Pig Group.

The AtlasFram Group has an annual turnover of almost £150 million, purchases every type of farm input for 1050 Members, deals directly with more than 1400 manufacturers, importers and local suppliers and markets 180,000 tonnes of Members’ grain, oilseeds and pulses annually through its own in-house Crop Marketing Department.

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