Auto Trader Ltd
Farminguk
27 September 2016 | Online since 2003
Scrutton Bland


10 August 2012 10:04:29 |News,Poultry

Pullet rearers urged to allow time to adjust to payment terms


The British Free Range Egg Producers' Association is appealing to pullet rearers considering introducing up-front payments to give producers time to adjust to new payment terms.
Some pullet rearers are considering changing current terms to limit losses from egg producers who fail to pay.
Free range egg producers currently pay for their birds between 14 and 28 days after delivery, but some pullet rearers are now likely to switch to requiring part-payment before delivery.
With free range egg producers now suffering heavy losses because of low egg prices and high feed bills, pullet rearers are increasingly worried about spending a lot of money producing pullets only to subsequently find that the producer who had ordered them did not have the money to pay the bill.
But many producers struggling in the current market may be concerned at having to find money up front for their new birds, and BFREPA vice-chairman Roger Gent is asking rearers to introduce any such terms gradually to ease the pain for egg producers.
"We discussed this issue at great length at the latest council meeting and, although we may not like it as producers, it is not something that we could realistically object to in the long term."
"We don't want pullet rearers exposed to bad debt, but we don't want egg producers to suddenly have to find large amounts of money up front for their next flock."
"If this is going to happen, then we would like to see it introduced gradually to give producers time to adjust to the new payment terms."
"For example, egg producers may pay a smaller amount up front for the first flock, with the up-front payment gradually increasing in size flock by flock. This would, hopefully, give egg producers time to accrue enough capital over time to meet the requirements of the new terms. I don't think that this kind of terms will be a bad idea in the long run, but egg producers do need help to make the change."
One pullet rearer we spoke to said he was considering an arrangement under which the producer would pay 20 per cent six months before delivery. He said that would cover the hatchery cost if the producer cancelled at that point. Another 30 per cent would be paid at eight weeks, covering more of the costs. The balance would be paid according to the current terms at between 14 and 28 days after delivery.
He said that up-front payment was used perfectly happily when farmers bought equipment and there was no reason why it could not be adopted for pullet purchases. With pullet costs rising and orders increasing in size, pullet rearers needed some protection, he said.
It is thought that the new terms could start coming into force at the beginning of 2013. Roger Gent urged BFREPA members to speak to their pullet rearers as soon as possible to find out what their intentions were and, if up-front terms were to be introduced, to come to an arrangement for the introduction of those terms to be staged over a period of time.

Download

0 Comment

loginuserlogo
Name

Please enter your name


Email

Please enter your email

Please enter valid email


Comment

Please enter your comment


Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


India | 27 September 2016
For a GM-driven agriculture revival

Agricultural growth has shown signs of stagnation of late. Some of the recent developments do not augur well for the sector and unless corrective measures are initiated, it could damage India’s long-t...


Ghana | 27 September 2016
African agriculture is powering economic transformation

The evidence is now in and the verdict is that Africa’s agriculture is powering economic transformation in the region. African agriculture has shown remarkable improvement compared to its precarious s...


USA | 27 September 2016
Wheat farmers ask RMA for help with falling numbers

They want USDA Risk Management Agency Administrator Brandon Willis to make an exception to the procedure the agency uses to calculate a farmer’s actual production history, or APH, said Michelle Hennin...


Ukraine | 27 September 2016
Ukraine mulls cancelling ban on farmland sale

The Ukrainian Agriculture Ministry said on Monday it had prepared a draft law on agricultural reform, which envisaged cancellation of a ban on the sale of the country's farmland. "Maybe at some st...


New Zealand | 27 September 2016
New Zealand to help boost local dairy industry

Thousands of Filipinos stand to benefit from technical interventions New Zealand committed to provide to boost the local dairy industry. Agriculture Secretary Emmanuel Piñol on Tuesday said Nathan ...



Trending Now

Viewed
Discussed


Top stories you may have missed
FarmingUK
FarmingUK Logo

FarmingUK

Labour will end the badger cull and prioritise ending bovine TB, Shadow Def...


FarmingUK
FarmingUK Logo

FarmingUK

A herd of rare White Park cattle could die out if its owners do not urgentl...


FarmingUK
FarmingUK Logo

FarmingUK

The UK government is "failing" to support farmers in the long-term accordin...


FarmingUK
FarmingUK Logo

FarmingUK

Retailer Co-op has announced that from May 2017 all of its bacon and lamb w...


FarmingUK
FarmingUK Logo

FarmingUK

Over 50 wildlife organisations have compiled a stock-take of all the UK's n...


FarmingUK
FarmingUK Logo

FarmingUK

In the run up to the EU farm ministers meeting the agricultural sector have...


FarmingUK
FarmingUK Logo

FarmingUK

The RPA must iron out a number of problems that still exist with 2015 BPS p...


FarmingUK
FarmingUK Logo

FarmingUK

Tourism businesses in the countryside are being held back due to the uncert...


FarmingUK
FarmingUK Logo

FarmingUK

A 24 point action plan aimed at revitalising Scotland's sheep sector after ...


FarmingUK
FarmingUK Logo

FarmingUK

A new survey has revealed that the vast majority of British consumers belie...


closeicon
Username
Password