Farmer owned businesses combine to benefit Members
The launch, today, of the AtlasFram Group has created the UK's largest farmer- owned purchasing and marketing group. With a turnover of more than £100 million and over 1000 Members farming in excess of 600,000 acres throughout East Anglia, the South East, Midlands, South West and North West, the AtlasFram Group will focus solely on their requirements, delivering a comprehensive, reliable, professional and commercial purchasing and marketing service based on honesty and transparency
Launching the new business exactly a year after the Directors of the former Atlas Agriculture and Framlingham Farmers announced their intention to combine the two companies, Robert Rous, Chairman of the AtlasFram Group, commented:
"The agricultural sector is currently experiencing a level of optimism not seen for many years, and the signs are that this will continue. The world's population continues to grow rapidly, increasing affluence in emerging economies is leading to permanent dietary changes encompassing higher consumption of grain, meat and dairy products, while biofuels are creating additional demand.
However, whilst the short and medium-term outlook for farmers in the UK is generally positive, all sectors of the agricultural industry must continue to improve their cost-effectiveness through greater scale and efficiency, while innovation will be essential."
"With the agricultural supply industry continuing to move into the hands of fewer manufacturers and suppliers it will be increasingly important for farmers to belong to a strong purchasing and marketing organisation which can negotiate the best possible deals on their behalf, yet still deliver the personal service that they expect. That is the goal we have set for the AtlasFram Group.
"Increased scale of operation will provide us with significant influence in the market, to the extent that we are a vital part of our suppliers' own businesses.
It will also enable us to improve the range of services we offer our Members, maintain highly-competitive Membership fees that deliver the best value for money and provide a choice of Membership options to suit all requirements.
"With one Board, one Chief Executive and one office, the AtlasFram Group will operate more cost-effectively, avoid duplication in key areas such as compliance, regulation and attendance at events, whilst also offering better employment opportunities to attract and retain the best staff."
Ian Watson, Chief Executive of the AtlasFram Group, added:
"A great deal of time and effort has been invested in bringing Atlas Agriculture and Framlingham Farmers together. However, it is important to emphasise that the merger is not just about achieving cost savings. Increased scale of operation is also essential to position the business for the future and allow us to compete even more effectively in the changing agricultural and wider marketplace.
"Former Members of both businesses will already be aware of the significant benefits of collaboration and it is their continued commitment which gives us our strength, influence and negotiating power in the marketplace. The Directors are determined to further improve the level of service to Members and ensure that we are consistently price competitive, securing terms on products and services that even the largest individual farming businesses strive to achieve."
Non-Member price comparisons conducted by the AtlasFram Group have demonstrated significant savings on key products, ranging from 5% on fuel and 8% on agchems, to 10% on seed and 12% on feed. These figures translate into savings of £15 -
£25 per hectare for farms producing combinable crops, £20 - £25/ha for combinable/root crop enterprises, £40 - £70/cow for dairy units and up to £20/head for beef, sheep and pigs, while those who use the Group's Pool Marketing schemes benefit by up to £12 per tonne.
Members also enjoy substantial savings on a wide range of other products and services such as building materials, electricity and telephones, while the Group's fleet partnership arrangements with machinery manufacturers such as CaseIH, Manitou and Kuhn, together with vehicle producers such as Ford, Land Rover, Nissan and Toyota, can save thousands of pounds on individual purchases.
Based at New Road, Framlingham in Suffolk, the AtlasFram Group employs 44 staff and is supervised by a Board of 11 Directors, including five former directors of Framlingham Farmers, four from Atlas Agriculture, together with Chief Executive Ian Watson and Chairman Robert Rous.
