BUYING GROUPS
The principle of farmers working together through cooperative buying groups is long established in the UK and in Europe up to 70% of farmers are members of a cooperative. Often these cooperatives are closely associated with local regions but terms for the supply of common inputs are negotiated collaboratively.
Purchasing agricultural inputs and equipment is a significant decision for farmers.
As the price of inputs and equipment continues to rise and suppliers consolidate to become larger, the buying group uses the collective influence of their members to secure a better deal for the individual members. Collective procurement has significant efficiencies for both large and smaller farm businesses. Buying groups provide more than simply using their influence to negotiate competitive prices. Members benefit from a single point of contact for all their purchases, expert advice on product selection and single monthly statement.
The principle is simple, the larger the quantity you buy and the easier you make the process for the supplier, the better the terms you can negotiate.
By aggregating, analysing and segmenting the requirements of the three largest farmers’ buying groups in the UK we are able to secure better value of our Members and easier market access to farmers for suppliers.