East Anglian pig producers save £1 million
Members of the AtlasFram Group’s Pig Group in East Anglia have saved more than £1,000,000 on the cost of feed for their herds during the last two years as a result of collective purchasing.
The Pig Group, which operates under the umbrella of AtlasFram, the UK’s largest farmer-owned input purchasing and crop marketing organisation, believes that without the financial saving which they were able to achieve some Members could have been forced to leave the industry due to economic pressures. Pig Group Chairman Jonathan Green, who operates more than 2000 sows at Ampton near Bury St Edmunds, comments:
"Pig farmers who want to control their costs, maximise margins and be certain of exactly what goes into the rations which they purchase have been the driving force behind the AtlasFram Pig Group since it was formed 10 years. Due to the confidential discussions which take place within the Group farmers wishing to join must already belong to AtlasFram Group and have been selected by existing Pig Group Members. When it comes to buying feed Members have a huge economic advantage over any individual producer, however large their business, because our collective purchasing power is so much greater. The financial savings which we achieve as a result help Members to remain independent.
"In 2007, when the cost of wheat was £96 per tonne delivered, many Members decided that it was the right time to purchase the raw materials required to manufacture rations produced from September that year, and some committed for a two-year period. The decision was based on information supplied by the AtlasFram Marketing Department, Crown Milling, which manufacturers the feed and certain Pig Group Members with a close interest in the commodity markets. At the time it appeared unlikely that the cost of wheat would drop by more than £10 per tonne, but the potential for significant increases was substantial. Over the next few months the price almost doubled, so buying then saved those who committed to purchasing more than £80 per tonne, which across the manufactured tonnage equated to over £1 million during the following year."
Co-ordinated by Gary Pleasance, the Pig Group represents producers with more than 10,000 sows and is a cornerstone of the pig industry in the East of England, encompassing a wide range of production systems, both indoors and outdoors. Leading nutritionist Andrew Zarcos-Smith, who is at the cutting edge of the feed industry, formulates all the rations and reviews ingredients on a regular basis to take account of changing costs and availability, although they remain consistent in terms of nutritional performance.
The Group also purchases veterinary medicines, generating huge savings compared with producers buying them individually, while Members also meet regularly to share information and take part in study tours to leading pig producing countries such as the United States, China and The Netherlands.
Jonathan Green comments: "The UK pig industry has a huge, ready market for pork on its doorstep and a major selling point is that our welfare standards are amongst the highest in the world. However, as an industry we have to reduce our production costs and Membership of the AtlasFram Pig Group enables us to do so."
