Lewes Farmers to close after 44 years
Members of Lewes Farmers Limited attending the company's Annual General Meeting in Lewes, East Sussex, today voted overwhelmingly to accept a proposal to liquidate the business of the 44-year-old farmer-owned buying group. Their decision means that the business will cease to trade at the end of its current financial year on 30th June 2007. The assets of the business, which was founded in 1963, will subsequently be returned to the 120 shareholder Members in accordance with the Articles of Association.
Lewes Farmers' Chairman, Peter Appleton, who farms 550 acres and 400 dairy cows at Arlington, East Sussex, commented:
"In recent years, farm businesses and those who supply them have had to strive for greater efficiencies in order to remain competitive during the very challenging times that have faced the agricultural industry.
"Lewes Farmers has a very successful trading history, a record of steady growth and is financially very sound, but the forward-thinking Board recognised that the business could not stand still, that a question mark hung over its long-term sustainability and, more immediately, that better prices could be achieved elsewhere. Given that situation, we felt it was necessary to adopt a pro-active stance and work towards providing a situation which would best serve the interests of the Members in the future.
"In April 2006 the Board elected to work with Framlingham Farmers Limited, the innovative Suffolk-based farmer-owned purchasing and marketing organisation which operates throughout East Anglia, the North West and South East of England, for an initial period of one year from 1st July 2006. Since then, we have been very impressed with the company's Board, senior management and staff. Our Members have clearly recognised the benefits of this arrangement in terms of continued good service and improved cost-effectiveness on a wide range of farm inputs. A significant number have also used Framlingham Farmers' Marketing Department, which markets 180,000 tonnes of combinable crops annually.
"Today's Annual General Meeting provided Members with the opportunity to express their views and I am pleased to report that the majority supported the Board's proposal that Lewes Farmers should cease to trade at the end of the current financial year. We expect that most of our Members will elect to join Framlingham Farmers with effect from 1st July."
Framlingham Farmers' Chairman, Robert Rous, who farms more than 3000 acres of his own and contracted land in Suffolk, added:
"Framlingham Farmers have worked hard to meet the needs of Lewes Farmers' Members and are delighted that they have recognised that. We are excited by the prospect of two like-minded organisations joining forces and are confident that this will generate even greater benefits for all involved."
"Since it was formed in 1960, Framlingham Farmers has become one of the UK's most successful farmer-owned businesses and we now enjoy a strong reputation with our Members and suppliers. The strength of the business results from Members' wholehearted belief in the power of co-operation and their support is fully justified by the significant benefits we bring to their farming businesses through our considerable buying power and negotiating skills in areas where competition for business is very intense.
"Scale of operation is becoming increasingly important in negotiating the best deals with manufacturers and during the last 10 years we have been very successful in delivering significant benefits for Members, assisted by our membership of Saturn Agriculture. A number of large farmers who would previously not have entertained the idea of joining a farmer-owned buying group have recently become Members because they realise that, however large their own businesses, they cannot consistently achieve the same results as Framlingham Farmers. They also recognise just how much time they now spend in the office and that we can help them to reduce that to a minimum."
English Farming and Food Partnerships (EFFP) have been closely involved with the two farmer-owned organisations. Duncan Rawson, Project Manager, commented:
"In April 2004, the Board of Lewes Farmers concluded that it had to consider merging the business with another supply group or outsourcing/contracting out negotiation of inputs and administration. EFFP facilitated a full strategic review of the business, conducted a feasibility study to identify and assess the interest/relative performance of other supply groups, considered how any opportunity might work and estimated the reaction of Lewes Farmers Members. In October 2005, we facilitated meetings between Lewes Farmers and two potential groups, following which the Board decided to enter into a partnership with Framlingham Farmers. Since then, EFFP has provided further support, outlined how the two groups might operate together and assisted the Board of Lewes Farmers in putting their recommendations to the Membership.
"Whilst we understand that the closure of Lewes Farmers signifies the end of a successful era for the business, we believe that as a result of the ongoing changes within the industry the consolidation of these two groups will provide benefits to Lewes Farmers' Members that would not have been achievable if the status quo had been maintained. We are therefore delighted that the Members have accepted the proposals put to them by their Board."
GROWING BUSINESS
During the last financial year Framlingham Farmers purchased agricultural inputs worth more than £40 million on behalf of its Members in East Anglia, the North West and the South East. The Members' high level of commitment and the organisation's ability to deliver maximum benefits has produced a strong business with an excellent balance sheet and sustained growth.
Framlingham Farmers has almost 600 Members farming in excess of 300,000 acres, who enjoy the benefit of consistent price competitiveness on any input that they are likely to need in running their farm business or farmhouse. Their collective buying power enables them to access terms which are beyond the reach of any individual farm and achieve the best possible deal in the market with just a single 'phone call. At the same time, they are assured of a reliable service that is completely independent and transparent.
The team of specialist buyers at Framlingham Farmers' head office in Framlingham, Suffolk deals with almost 1000 suppliers, provide independent 'best buy' advice and give guidance on the best time to purchase specific products such as fertilisers and agrochemicals. Members simply telephone, fax or email their requirements or order/collect direct from an approved supplier.
Comparisons during the last 24 months have demonstrated that Framlingham Farmers members have achieved average savings of 5% on fuel, worth £2.50 per hectare, 10% on agrochemical products (£5.00/ha), 6% on fertilisers (£6.60/ha) and 11% on seeds (£3.00). In other product areas, for example building materials and machinery spares, Members have saved up to 40%. The combined value of these savings averages £15 - £25/ha for farms with combinable crops, £20 - £35/ha for combinable crops and roots/vegetables enterprises and £50 - £60/cow on dairy units.
Framlingham Farmers acts as a one-stop-shop extension to the farm office and reduces paperwork by issuing a single monthly invoice, providing Members with a significant time saving and allowing them to get on with the business of managing their farms.
Further details about Framlingham Farmers are available at www.framfarmers.co.uk
