Farmer-owned buying groups launch purchasing alliance

Three of the UK’s largest farmer-owned buying groups, Fram Farmers, AF Group, and Woldmarsh Producers will combine purchasing power as part of a new joint initiative.

The collaboration between the three parties, called the Agri Procurement Alliance (APA), will initially be used to purchase fertilisers for their 6,000 farmer members.

APA will benefit from stronger bargaining power and better intelligence for procurement, and should help to achieve lower purchase costs.

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All three businesses will retain their own identities and operations and have made it clear that the establishment of the APA is not the beginning of a merger. 

Each organisation will hold an equal share of the new venture and will have two directors assigned to the board.

The APA will be chaired by Stuart McKenzie, former chief executive of Woldmarsh Producers.

Mr McKenzie said: “Despite significant individual growth in membership numbers, co-operation between the groups provides an opportunity to make a step-change in size, bringing the total to over 6,000 members.

“We are confident this will elevate discussions with suppliers to another level, bringing benefits to both members and suppliers.

“APA will be solely focused on working with suppliers, to optimise volumes and deliver more efficient forecasting, planning and enhanced procurement.

“There will be no change in how the individual buying groups support and serve their members, who will continue to receive distinctive value, service and advice.”

Mr McKenzie concluded that APA is about working with suppliers and the wider industry to support UK farming, and bringing further value to the collective memberships.